Distribution
Distribution of your product can represent one of the biggest challenges with a large impact on the bottom line. What will the distribution model be? Hub & Spoke? Drop shipping? Distribution Center? Each of these decisions will have an impact on the amount of working capital needed.
Working directly with the sales and operations team will be critical to plan for production and inventory requirements throughout each phase of the product lifecycle. Plan for too little inventory and you cannot service your customers, plan for too much and you’re over using your capital.
Full understanding of the distribution model and its associated costs will provide a clear picture of the margins associated with your product and if anything needs to be adjusted to achieve your goals.