The Next Big Thing discusses topics that other hardware entrepreneurs will find useful, such as prototyping and manufacturing, tools the companies use to keep moving forward, sales channels that have been effective (as well as others that have been complete failures), and managing cash flow. In Episode 8 we discuss how Flair is adapting their business during the Covid-19 pandemic. We speak with...
These days most US-based companies that sell products online have their inventory made by a contract manufacturer in South East Asia–commonly in Shenzhen, China. This raises the question: to get the inventory into your US-based warehouse, do you use air or ocean shipment? In this article we are going to run through the pros and cons of each and some basic rules to follow. You can jump to...
For companies that make and sell physical products there are a few key expenses that affect the trajectory of the business. These include shipping and logistics, marketing, and inventory. The largest of these cost centers is frequently inventory. Often 30% of a company’s revenue is dedicated to inventory. Inventory financing is a way that companies can unlock this capital, enabling accelerated...
The Next Big Thing discusses topics that other hardware entrepreneurs will find useful, such as prototyping and manufacturing, tools the companies use to keep moving forward, sales channels that have been effective (as well as others that have been complete failures), and managing cash flow. In Episode 7 we discuss with owner, Sam Huebner, how Parker Baby is able prioritize product development...
Let’s start by defining what ‘MOQ’ means. The Minimum Order Quantity or MOQ is implemented by the seller of goods (that could be anywhere along the supply chain, but in this case we are going to focus on contract manufacturers). An MOQ is often required to ensure the manufacturer makes a certain amount of money per order, since manufacturing below a certain order volume would not be worth their...
There are many posts on The Internets discussing different financing options for startups, but we think too few look at the options from a holistic point of view (debt AND equity). In addition, we think many posts approach the discussion from the wrong starting point, simply listing different financing options. We want to start from first principles, asking – what do you need the financing...
The Next Big Thing discusses topics that other hardware entrepreneurs will find useful, such as prototyping and manufacturing, tools the companies use to keep moving forward, sales channels that have been effective (as well as others that have been complete failures), and managing cash flow. In Episode 6 we chat with Mountain Evan Chang, the founder of Carets. He tells us about how running...
In our previous post ‘How to calculate the correct amount of inventory to order’ we introduced a basic framework that can be used to begin your calculation. If you are revisiting the post and want to get straight to the calculator, welcome back! You can get the calculator here or scroll to the bottom of the page where it is embedded. If this is your first time visiting you’ll find it beneficial...
Every Fulfillment Center client has the potential to be high-growth; the only thing missing is resources. More inventory. More time. More capital. That’s where Kickpay’s Fulfillment Partner Program comes in. The Fulfillment Partner Program enables all Fulfillment Center clients to quickly and easily access working capital by using their inventory as collateral. The newest member to the program is...
In our previous Blog post, “The Hidden Costs of Carrying Too Much Inventory”, we discussed some often overlooked costs relating to inventory. Ordering too little means you run into an out of stock situation, leading to reduced revenues and a poor customer experience. On the other hand, ordering too much inventory impacts your business’ margins via hard costs like storage fees and obsolete stock...