Deciding on the best product offering for growth using Clockwork
An interview with Ryan Mundy and Philip Causgrove, Co-Founders, at SWZLE
SWZLE was leading the charge in eco-friendly products with their reusable straws and customizable carrying cases. The SWZLE team needed to decide whether or not they should stick to their customized cases with a standard straw, offer custom cases and custom straws, or offer additional products at launch.
If the team didn’t map out the projected sales of each scenario with the appropriate costs, they could run out of cash almost immediately. If they offered too many products without an understanding of the margins and inventory costs, they could end up losing money, even with growing sales. Furthermore, if they were unable to quickly evaluate the different product and market nuances, the decision making process could cripple them.
SWZLE needed to map out the different product combinations and market dynamics for each scenario, to find out what impacts they would have on their cash flow and finances, and determine the optimal mix going forward. The team needed to adjust their revenue and expense projections for each product and see both the short- and long-term impacts to understand which products would be the most profitable, and to see the cash flow implications in each scenario.
In minutes, the SWZLE team was able to map out all of the products they planned on offering and easily see which would give them the best chance for success. They decided that offering reusable straws with an up-charge for customization provided them the best offering, and after moving forward with a decision, they outperformed their projections by over 300% month over month.
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