CrownBird
© CrownBird 2019

When you are a Start-up

This page you must read if you are a Start-up. Its not a complete info but just few important remarks that you must understand. This info is based on our long experience of dealing with start-ups – we know what we talk about. Read also what other says and see what you can find on youtube and other such sites about starting a new business. During 2020 we will also add online courses and other resources about placing orders as well as how to start your own new brand.

About yourself

You must be a person suitable to run a business. You need to be prepared to take responsibility. You can work systematically and is good at solving problems. You have or you can get the Know-How of the business sector that you choose to deal in. And you can handle, or have someone that can handle, economical issues. You are a good sales person, or you have someone else who can do this. You must understand that business typically is not always smooth and easy but problems and challenges are a part of doing business. You have, or will get, the human and economic resources you need. And you finish whatever project you start.

Your Business Idea

Your business idea must be right. Do not make it too big from start, but also not too small as you cannot earn enough in that case. If you want to sell items to everybody you normally need millions if not billions in your pocket to spend and marketing has to be a huge issue. But if you select a small targeted customer group you have a much bigger chance to make a success.  So do not try to make garments to everyone but let say garments to pregnant women as that is much easier to target as customers. Do not make jewellery to everyone but to let say well paid middle class women. Not decoration articles to everyone but let say for compact living apartments, or for a specific holiday like Christmas. Become a specialist if you start a new small business. Then do not do things just because “you like it” but because you have identified either a need for it on the market not covered by others, or where you can create a need for it, let say a new product. Its your customers that must love your products – and so much that they want to buy it, and enough many buyers to make a profit. Its less important what’s your personal favourite thing is because that product or type of product may have a too heavy competition. Understand USP – Unique Selling Point. You must be unique one way or another to make a success. Because if you copy what others already do they probably have economical and other mussels to compete your company to death.  You can have the best quality, or the lowest price, or best service, or a unique product, or … To open a cafeteria on a street that already have 3 other cafeterias is normally a very bad idea, unless you have something the others does not have. Perhaps you can be open 24 hours and have the best sandwiches in town. In a similar way you must be unique one way or another if you deal in garments, or gift articles, or carpets, or silver jewellery, or … If you have a physical shop perhaps it’s enough to be unique in your own town, but when you are online competition is huge so for that you must be unique on a geographically bigger scale. So: Find out what’s missing in the market with enough potential customers. Then see if you can develop a business idea.

Your Business Plan

Your business plan is a document where you write down your plan for your business idea. Write down the idea, how you will get the product(s), how you will sell, how you will market your product(s). Write down what kind of competition you will have and how you can beat that competition. By writing down all these things, and do it properly, you must try to understand what it takes to make a success. OK you have a good product – but if you do not have a good idea on how to market and sell the product you are not going to sell much. And if you think your competitors will not compete with you then you are mistaken.  So how they will compete and how you will win over them you must plan from the start. Then you need a budget in your plan.

Your Budget

A budget is a must. By doing a budget together with your plan you can test in theory if you will make a profit or a loss based on your idea and plan – and that’s much better than loosing real money. You make a minimum 3 year plan when starting a new project.  Month by month and year by year. Or start with a budget for your first deal – to get the hang of it and test. And you need 3 budgets. Profit and loss: This budget will show you if you are going to make a profit or not. Assets and Liabilities: This budget will show you the balance between assets and liabilities – Assets should always be bigger. Cash Flow: This budget will show you how much cash you need to have (in hand or in the bank) each month. You may make a profit in your plan. You may always have bigger Assets than Liabilities. But still you can crash your company if you do not have enough with cash at any time. Why? Because when you pay for a shipment you have to spend lots of money, you will earn more when you have sold the goods – but as YOU have to pay to your supplier(s) before, and sometime long before you sell you need cash to cover that period. So a Cash Flow budget is in a way the most important budget. If you cannot make a budget yourself – take help. Many times a budget will tell you that you must change something before your projects gets profitable. One of the most common mistakes is to start with too small orders because “you just want to try”. Apart from the problem to get small quantities in some cases the main issue is that often all development costs are more or less the same regardless if you place a small or a big order. And then this cost divided per product will be higher, or much higher. Add to that the fact that buying small quantities normally costs much more per product than buying bigger quantities. So you end up placing a small order but you make no profit and loose invested money and ends up without money enough to spend on the next order. Also with small quantities you may sell everything to family and friends only and that does not tell you if you have a good product or not.

Financing

Apart from your own pocket money you may need extra funds. Please note that banks normally only give loans against security (or in few cases a very good business plan) but instead banks gives some credit for your business account. So normally you need more than that. Friends and relatives may borrow your money but not too nice if you fails to launch a successful business as you may loose there friendship. Then you have investors of different kinds, but they do not want to be your long term partner – instead they want to invest the money for let say 3 or 5 years against a share in your company. And after that period they want to sell that share and make a several hundred % profit – they want that because they take a significant risk to loose the invested amount. You also have crow- funding but again some risks are there. Regardless you need a full-fledged business plan with a proper budget for financing  But you may also sometimes find long term investment partners. Important Few important things: Do not just start a business without first creating a first class business idea and make a proper business plan with a budget. Be unique one way or another. Do not think its very easy to start a business, it’s a struggle and you will have several disappointing experience before you make the big success. Only design your own products if you are a good designer – else why not leave it to us and our partners to help you. Or let us buy ready products for you and you concentrate on selling – much easier.   
The Start-up perspective
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CrownBird
© CrownBird 2018-2019

When you are a Start-up

This page you must read if you are a Start-up. Its not a complete info but just few important remarks that you must understand. This info is based on our long experience of dealing with start- ups – we know what we talk about. Read also what other says and see what you can find on youtube and other such sites about starting a new business. During 2020 we will also add online courses and other resources about placing orders as well as how to start your own new brand.

About yourself

You must be a person suitable to run a business. You need to be prepared to take responsibility. You can work systematically and is good at solving problems. You have or you can get the Know-How of the business sector that you choose to deal in. And you can handle, or have someone that can handle, economical issues. You are a good sales person, or you have someone else who can do this. You must understand that business typically is not always smooth and easy but problems and challenges are a part of doing business. You have, or will get, the human and economic resources you need. And you finish whatever project you start.

Your Business Idea

Your business idea must be right. Do not make it too big from start, but also not too small as you cannot earn enough in that case. If you want to sell items to everybody you normally need millions if not billions in your pocket to spend and marketing has to be a huge issue. But if you select a small targeted customer group you have a much bigger chance to make a success.  So do not try to make garments to everyone but let say garments to pregnant women as that is much easier to target as customers. Do not make jewellery to everyone but to let say well paid middle class women. Not decoration articles to everyone but let say for compact living apartments, or for a specific holiday like Christmas. Become a specialist if you start a new small business. Then do not do things just because “you like it” but because you have identified either a need for it on the market not covered by others, or where you can create a need for it, let say a new product. Its your customers that must love your products – and so much that they want to buy it, and enough many buyers to make a profit. Its less important what’s your personal favourite thing is because that product or type of product may have a too heavy competition. Understand USP – Unique Selling Point. You must be unique one way or another to make a success. Because if you copy what others already do they probably have economical and other mussels to compete your company to death.  You can have the best quality, or the lowest price, or best service, or a unique product, or … To open a cafeteria on a street that already have 3 other cafeterias is normally a very bad idea, unless you have something the others does not have. Perhaps you can be open 24 hours and have the best sandwiches in town. In a similar way you must be unique one way or another if you deal in garments, or gift articles, or carpets, or silver jewellery, or … If you have a physical shop perhaps it’s enough to be unique in your own town, but when you are online competition is huge so for that you must be unique on a geographically bigger scale. So: Find out what’s missing in the market with enough potential customers. Then see if you can develop a business idea.

Your Business Plan

Your business plan is a document where you write down your plan for your business idea. Write down the idea, how you will get the product(s), how you will sell, how you will market your product(s). Write down what kind of competition you will have and how you can beat that competition. By writing down all these things, and do it properly, you must try to understand what it takes to make a success. OK you have a good product – but if you do not have a good idea on how to market and sell the product you are not going to sell much. And if you think your competitors will not compete with you then you are mistaken.  So how they will compete and how you will win over them you must plan from the start. Then you need a budget in your plan.

Your Budget

A budget is a must. By doing a budget together with your plan you can test in theory if you will make a profit or a loss based on your idea and plan – and that’s much better than loosing real money. You make a minimum 3 year plan when starting a new project.  Month by month and year by year. Or start with a budget for your first deal – to get the hang of it and test. And you need 3 budgets. Profit and loss: This budget will show you if you are going to make a profit or not. Assets and Liabilities: This budget will show you the balance between assets and liabilities – Assets should always be bigger. Cash Flow: This budget will show you how much cash you need to have (in hand or in the bank) each month. You may make a profit in your plan. You may always have bigger Assets than Liabilities. But still you can crash your company if you do not have enough with cash at any time. Why? Because when you pay for a shipment you have to spend lots of money, you will earn more when you have sold the goods – but as YOU have to pay to your supplier(s) before, and sometime long before you sell you need cash to cover that period. So a Cash Flow budget is in a way the most important budget. If you cannot make a budget yourself – take help. Many times a budget will tell you that you must change something before your projects gets profitable. One of the most common mistakes is to start with too small orders because “you just want to try”. Apart from the problem to get small quantities in some cases the main issue is that often all development costs are more or less the same regardless if you place a small or a big order. And then this cost divided per product will be higher, or much higher. Add to that the fact that buying small quantities normally costs much more per product than buying bigger quantities. So you end up placing a small order but you make no profit and loose invested money and ends up without money enough to spend on the next order. Also with small quantities you may sell everything to family and friends only and that does not tell you if you have a good product or not.

Financing

Apart from your own pocket money you may need extra funds. Please note that banks normally only give loans against security (or in few cases a very good business plan) but instead banks gives some credit for your business account. So normally you need more than that. Friends and relatives may borrow your money but not too nice if you fails to launch a successful business as you may loose there friendship. Then you have investors of different kinds, but they do not want to be your long term partner – instead they want to invest the money for let say 3 or 5 years against a share in your company. And after that period they want to sell that share and make a several hundred % profit – they want that because they take a significant risk to loose the invested amount. You also have crow-funding but again some risks are there. Regardless you need a full-fledged business plan with a proper budget for financing  But you may also sometimes find long term investment partners. Important Few important things: Do not just start a business without first creating a first class business idea and make a proper business plan with a budget. Be unique one way or another. Do not think its very easy to start a business, it’s a struggle and you will have several disappointing experience before you make the big success. Only design your own products if you are a good designer – else why not leave it to us and our partners to help you. Or let us buy ready products for you and you concentrate on selling – much easier.   
The Start-up perspective
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