8. COST STRUCTURE
We have made a lot of big claims on the canvas so far-all the resources we are going to buy,
people we are going to employ, activities we are going to perform, channels we are going to
operate, relationships we are going to manage…. Those are not cheap things. !
We ought to get a picture of our financials, see if we are really making money on any sale, and
calculate how many transactions we expected to really stop. That is why understanding our
cost structure is so important – it tells us the total amount we are due to spend, but also the
format we spend it in. We need to learn, for example, which expenses are one-off, and which
ones are continuing. We also need to understand the fixed costs, and the variable costs.!
!
#
COST STRUCTURE
Marketing & Ads
General &
Overheads
Expenses
Equipment &
Supplies
Raw Materials
Salary
Exp
Rent
Light,
Heating
, Water,
Internet
Start-up Cost:
Administrative/General/Misc/Unexpected Expenses
11.000.000
Rent
VND
11.000.000
Initial Tool Purchases
4.500.000
Color
500.000
Leather
1.000.000
Devices, Tool
2.000.000
Other Supplies
2.000.000
Raw Material (Shoes)
2.000.000
Machine
2.000.000
Legal/Consulting Fees (including setup costs)
1.500.000
Initial Marketing & building website
10.000.000
VND
31.000.000
30.000.000
15.000.000
2.000.000
