Mikkel
Gold Contributor
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Summer is almost over, Graduate school is about to start and I am about to start a business... Great
Some of you may know that I am running multiple Instagram accounts. I have decided over my time growing my accounts that I am taking one of these accounts and turning it into a business. The business concept is not to difficult, however I have never executed a business plan before. Therefore learning during the process is a MUST!
The watered down plan is simple:
Grow IG Account ---> Funnel Followers/Viewers to Website ---> Sell Products
The more complex plan involves getting my products into stores while also gaining organic page followers to my website without IG. The reason being is that I do not want IG to have control of my business.
Now, as the title says, I plan on selling Marijuana Based Products. No, I will not be selling Marijuana. That involves to much waiting around, to many laws to work around and overall it is just another gold rush. We all know the saying, "Sell the shovel, don't mine the gold."
Anyways. Here is the list of things I need to do. Complete v.s Incomplete
Make IG Account(I have 6,000 as of today)
Find First Product to Sell
Find, Contact and Test Sample Product - Satisfied with Product
Create Logo - Vector Format - Logo Designed for Company/IG/To Be on Product
Order Products - First Shipment will take 2 weeks for delivery
Build Website w/ Shopify Cart(Website Name is Already Mine)
Receive Products
Create Plan for Shipping (I believe U.S Postal service will be best option, product less than 1 lbs. w/ $5 flat rate)
Release 6/7 day promotional ad campaign over my IG page (This involves changing my Old IG account name to become the business name and to promote the release of the product)
Learn how to do Accounting? (I have no idea what I'd be doing with this. I assume it's a must that I do?)
LLC - I don't even know when I would HAVE TO create this into an LLC. I'm by no means wealthy and definitely on a shoe string budget)
Costs/Money/Numbers
Initial Start Up:
$330 - 30 units of product
$10/yr - Namecheap price for first year ---> $33/yr after first year
$30/month - Shopify
$20 Logo - College Friend in Graphic Design Helping Me Out
------------------
$390 - Initial Startup cost
Selling Products:
$330/30 units = $11/unit
$5 shipping in U.S - Paid by customer
Plan to sell products(5 units) = $20 + $5(shipping) = $25 bill to customer
Profit: $20 - $11 = $9
Pricing In Future: These are different pricing plans from manufacturer and their outcomes
1. $330/30 units = $11/unit ---> 30 units x $9(profit) = $270 Total Profits
2. $1,000/200 units = $5/unit ----> 200 units x $15(profit, new profit due to lower price/unit) = $3,000 Total Profit
3. $2,600/1,000 units = $2.6/unit ---> 1,000 units x $17.4(Profit, new profit due to lower price/unit) = 17,400 Total Profit
Questions to FLF community:
1. When should I be looking into making this into an LLC?
2. Can anyone ease my mind on the accounting aspect of business, or am I in for a rude awakening?
3. Any suggestions
EDIT:
The numbers have changed due to good advice and in hopes to try and make the math less confusing for readers.
Some of you may know that I am running multiple Instagram accounts. I have decided over my time growing my accounts that I am taking one of these accounts and turning it into a business. The business concept is not to difficult, however I have never executed a business plan before. Therefore learning during the process is a MUST!
The watered down plan is simple:
Grow IG Account ---> Funnel Followers/Viewers to Website ---> Sell Products
The more complex plan involves getting my products into stores while also gaining organic page followers to my website without IG. The reason being is that I do not want IG to have control of my business.
Now, as the title says, I plan on selling Marijuana Based Products. No, I will not be selling Marijuana. That involves to much waiting around, to many laws to work around and overall it is just another gold rush. We all know the saying, "Sell the shovel, don't mine the gold."
Anyways. Here is the list of things I need to do. Complete v.s Incomplete
Make IG Account(I have 6,000 as of today)
Find First Product to Sell
Find, Contact and Test Sample Product - Satisfied with Product
Create Logo - Vector Format - Logo Designed for Company/IG/To Be on Product
Order Products - First Shipment will take 2 weeks for delivery
Build Website w/ Shopify Cart(Website Name is Already Mine)
Receive Products
Create Plan for Shipping (I believe U.S Postal service will be best option, product less than 1 lbs. w/ $5 flat rate)
Release 6/7 day promotional ad campaign over my IG page (This involves changing my Old IG account name to become the business name and to promote the release of the product)
Learn how to do Accounting? (I have no idea what I'd be doing with this. I assume it's a must that I do?)
LLC - I don't even know when I would HAVE TO create this into an LLC. I'm by no means wealthy and definitely on a shoe string budget)
Costs/Money/Numbers
Initial Start Up:
$330 - 30 units of product
$10/yr - Namecheap price for first year ---> $33/yr after first year
$30/month - Shopify
$20 Logo - College Friend in Graphic Design Helping Me Out
------------------
$390 - Initial Startup cost
Selling Products:
$330/30 units = $11/unit
$5 shipping in U.S - Paid by customer
Plan to sell products(5 units) = $20 + $5(shipping) = $25 bill to customer
Profit: $20 - $11 = $9
Pricing In Future: These are different pricing plans from manufacturer and their outcomes
1. $330/30 units = $11/unit ---> 30 units x $9(profit) = $270 Total Profits
2. $1,000/200 units = $5/unit ----> 200 units x $15(profit, new profit due to lower price/unit) = $3,000 Total Profit
3. $2,600/1,000 units = $2.6/unit ---> 1,000 units x $17.4(Profit, new profit due to lower price/unit) = 17,400 Total Profit
Questions to FLF community:
1. When should I be looking into making this into an LLC?
2. Can anyone ease my mind on the accounting aspect of business, or am I in for a rude awakening?
3. Any suggestions
EDIT:
The numbers have changed due to good advice and in hopes to try and make the math less confusing for readers.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
Last edited: