The icing on the cake is the people

[sadiksojib35]

People are always smarter than IT systems. And financial management without operational management gives nothing. But it is not enough to put everything in beautiful tables. It is important to explain their essence to people, to transfer knowledge.

What to do
During the strategy session, calculate how you will spend (invest money in goods) and earn money by month (based on the planned demand from the team). Then upload all the forecast data to your financial system, distribute obligations and receive a commitment for implementation from the team (do not forget that with this approach mexico whatsapp phone number you can motivate the team by a percentage of gross profit). Then by month you can see the plan/fact for the implementation of the company's annual financial strategy.

My experience shows that if you have planned everything, and the founders and the team have an agreed financial strategy (plan for revenue, expenses, planned gross and net profit), the market is not stormy, and no one breaks the existing business process every day, the team should correctly calculate the financial plan and fall within a deviation of <20%. If the deviation from the plan is greater, it means that the team is drawing numbers and not managing the business. In this case, I recommend changing the team.



Checklist: Typical Mistakes in Marketplace Sales Management
You invest money in a product that generates a loss because you only control the turnover, not the margin.
You don't know the average price in the period because you set the price in 1C and think that everything is great. In fact, your price is controlled by the manager who presses the buttons for participation in promotions, and you don't even suspect it.
In the reports, you do not take into account the parameter of how long the product was in stock, which is why you either underestimate demand (exclude sales that analytics did not see), or calculate it at the maximum (you caught that on the day of sale there were 100 pieces and made the assumption that every day now you are able to sell these 100 pieces).
You do not control the cost price of the goods.
In the channel cost, you only take into account the standard marketplace commission for your category, forgetting about related expenses: logistics, warehouse, fines.
You don’t catch the articles that give you losses even before marketing, and turn on advertising campaigns for them.
You do not take into account the seasonality of the product.
As a result of previous mistakes, you drop the price and margin, and work at a loss.
You don’t motivate the team to implement the financial plan.


What's the bottom line?
Marketplaces are a tough market with high competition and a clear bias towards analytics and data. I often call it a mathematician's business. If you have no experience, don't count on easy profit. And that the team will do everything for you.

At the same time, it is a large sales channel and an opportunity to become a rich person if you have persistence, you are constantly learning, you love numbers and are ready to dive into them. And most importantly, you have a competitive product.