Growing A Business 101: Thriver Of The Month Mentoring Session With Julie Nguyen – Episode 3 – Part 2
Are your specific variable costs of your product or service refined? Do you have your business model worked out to the point where you know specifically whether you are competing on the value or the price of your product or service? In this particular episode, we sit down with the Thriver of the Month Julie Nguyen who has in Etsy business where she sells products. We break down the specifics for whether or not she needs to compete on the value of her products, or the price of her products. One of the first things that you must do when you’re looking to determine a breakeven point is that you must take the time to record all of the hard costs for your business. This includes anything associated with your business if you were operating out of your house. Whenever you add a new cost to the business, you must add it to your hard cost sheet. Once you have done this you must determine how much profit per product that you sell you can make. Once you have identified the specific profit per product that you earn, you can determine your breakeven point which is the most important thing for your business. You must know how many products that you must sell in order to break even every single month. If you do not know this number, that is like not knowing how much gas is left in the tank of your car. As you were determining whether or not you’re going to compete on value or price for your products, you must evaluate whether or not you can’t compete with your competitors at all of the different customer touch points of your business. All of your customer touch points must be world-class like Tesla or Mercedes. This includes things like you’re website and the packaging in which you ship your products. To learn more about determining the value proposition for your product or service, make sure that you check out this particular episode with Thriver of the Month Julie Nguyen!