Five common mistakes of CPG startups
This lesson is an article published by Collaborative Fund.
Read the articleWhat you'll get
Sophie Bakalar of the investment firm Collaborative Fund describes five ways she sees CPG startups go wrong: moving into mass grocery too soon, paying steep fees for shelf placement, copying a hot trend, ignoring gross margin and borrowing growth and valuation expectations from software companies. It was written in 2017 by an investor, so skip its dollar figures and use the five as a checklist for your own plan.
Do this week
Estimate your gross margin per unit (selling price minus what it costs you to make and package one) and name the small channel, such as a farmers market or an independent grocer, where you would sell before any chain.