Simple Startup Blog

See the financial issues being discussed in our most recent blog posts.

If you’re an early stage or young consumer product goods (CPG) company, you’ll know that there’s a certain stage you’ll reach in your growth journey where you’ll probably be looking to scale up your production to maximize on sales and profits. We’ve already talked about how hiring a CPG broker can help in pursuing…
Revenue-based financing (RBF) is a mix of equity and debt financing that places a limit on the equity portion of the financial agreement. In an RBF agreement, a company receives capital from investors with an agreement to pay a percentage of monthly revenue until a predetermined amount has been paid. This method is popular…
The world of tax can be extremely confusing, with rules differing between states, but getting it right is crucial to your company’s success. As your business evolves and changes over time, your sales tax obligations may also change or expand, so it’s vital that you’re effectively managing your taxes. In this blog, we’ll take…
As a startup, securing that much needed funding is a huge deal and deserves to be celebrated! But after you’ve taken a moment to celebrate this victory, it’s time to get down to business. It’s one thing to secure funding, but it’s a whole other ballpark ensuring that you’re using this funding in the…
Many startups seek equity funding during their high growth journey, and while achieving successful funding is incredibly exciting, it also comes with a few management considerations to keep in mind. And this is namely capitalization table management. Using a capitalization table will help you keep a close eye on your ownership dilution, and understand…
What is a Gross Profit Margin? Your profit margin is impacted by so many factors, such as price, volume, and even sales region. So knowing your way round your profit margins can give you valuable insights into understanding what exactly is driving your margins, which will help in making those bigger and trickier business…
What is a Distributor? Most consumer goods (CPG) brands and companies will start off using self-distribution because it’s the most cost effective option at the time. But as your business grows and your inventory expands, self-distribution is no longer a viable option. And that’s when you’ll likely start looking for a distributor. Distribution is…
What are Chargeback, Trade Spending, and Deduction Fees? One of the potential profit drains for consumer packaged goods (CPG) companies are the trade spending and deduction fees that tend to come with selling their products. They usually stem from working with wholesale distributors, like leading US distributors KeHE and UNFI, and can be tricky…
When Asking for Payment Becomes a Challenge Running a business can sometimes feel like juggling. There are quite a few balls to keep in the air and each of them needs your attention before they can be thrown back into the thick of things. The challenge of juggling all of these balls (i.e. various…
Alternative Financing Options In an ideal world, it would be super simple for every business to seek and receive financing whenever they’re in need of funds! But the financing landscape is a little more complex than that and often financing is based on industry, business history, credit scores, access to collateral, and a number…