The Problem: Start-up with limit system and operations infrastructure to effectively and efficiently support online retail business demand & competition.
Analysis of Alternatives: Invest significantly in house staffing resource to support operations & finance/admin. Outsource the required experience financing & accounting turnkey accounting firm with scalability at a flat fee cost. Invest in a high hourly cost business consultant to study, review, design, and implement to be selfsustain.
Recommended Solution: To outsource the design of processes to the accounting system that can handle large and repetitive transactions to an accounting firm. This option is the optimal solution to control investment costs and add a long-term partner to be scalable and flexible to grow business.
Implementation: Identify the sales and purchase order processes to systematize the linking of inventory cost and pricing to provide instant profit reporting to maximize cash usage. Create a standard report to manage customer and vendor collections and payment. Generate a system of financial reporting to review profitability regularly to control costs and maximize pricing.
RESULTS: The systematizing of the sales and accounting processes deliver a strong infrastructure to effective handle the sales growth from $50K the 1st year to $1.3MM in 2nd year with a solid profit and adds healthy cash reserve to expand the business model from Internet to handle high volume commercial business.