Sometimes it’s easy to forget how simple business can be. As witnessed with my own eyes I present the Benidorm Art of Bootstrap Startup Selling.
Bring Me Head Of Alfredo Sangria
So we need product, here’s sangria. At 1.29€ a bottle (and for a big bottle) you’ll get four large cups out of it. A quick word with the marketing department says that if you slice up an orange (0.40€) it’ll appeal to customers better. Speaking of cups 20 will cost you 1.50€.
Bill Of Materials
Just a recap. To sell one cup of my “Sangria Special” (that’s the marketing department again) this is how the bill of materials is looking.
- Sangria (1.29 divided by 4) = 0.46€
- Orange segment (0.4 divided by 8) = 0.05€
- Plastic cup (1.50 divided by 20) = 0.08€
- TOTAL COST OF PRODUCTION = 0.59€ per cup.
The selling price, 4€. So a tidy profit of 3.41€ per cup.
What is the size of market exactly?
To be honest too big for one entrepreneur to handle but that’s okay, if I take 10% of the market (about 500 customers) and 10% of those buy the Sangria Special that’s 50 sales a day.
50 sales x 4€ a cup = 200€ turnover a day with at a cost of 29.50€ and a clear profit of 170.50€
An April to October window is 213 days. Or, 42,600€ turnover with operating costs of 6283.50€ and a profit of 36316.50€.
That wasn’t hard was it? And not a funding form, bank loan or investor in sight.