Friday, July 13, 2012
Business Plan - Cost of Goods
This afternoon after consulting with my friend Joshua, I spent a few hours getting a business plan together. It still needs some work (good thing the SBA describes this plan as a "living document"!), but I'm pretty happy with the work I'm doing on it. My big push was to get an accurate cost of all ingredients I'd need to make 10 sets of the aromatherapy dough -- I'm happy with the math, but not so much with the costs of ingredients. A lot of stuff is needed for start-up, especially since I'm committed to ultimately using an with a long shelf-life that is good for the skin (like Vitamin E) and want to use organic essential oils. Oils are expensive, but I've got the cost of essential oils down to 91 cents per 8 ounces of dough -- if only I could bring the other expenses down! Working on it. Because right now the dough costs a projected amount of $7 per cup, and that's before labor. Still -- it's nice to be moving forward and I'm excited.
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