Andrey Lysykh recently “started” dance floors, and now he carries fresh oysters for 7 thousand kilometers. He is responsible for all matters in Ustrica.by – as the saying goes, “I play myself, I sing myself, I sell tickets myself”. And he asks a question that is well known to young entrepreneurs – how to stop being “self-employed” and build a systemic business?
Organizers of the project “Working Group” – “Pro business” and Pro Retail
Spring season partner of the “Working Group” – Alfa Bank
Project partner – the company “Trafory”
“I am ready to scale and delegate everything. But where to find people who will do everything at a high level? And most importantly – how to pay them? “ – asks Andrey. And he admits that today his project for the delivery of fresh oysters Ustrica.by (the main company is called Rybin Good) is barely making ends meet.
The managing partner of the Agency for Strategic and Economic Development sorted out Andrey’s problem on the air Oleg Ilyin and co-founder of Webcom Group Sergey Tsarik.
Watch the full version of the live stream:
Rybin Good in numbers
- Product portfolio: oysters, scallops, vongole
- Key clients: retail (one-time orders from the category “treat yourself to oysters during the holiday”), retail and HoReCa (restaurants with constant service)
- Number of clients: 350-400 individuals, regular of them 30-50, 20 HoReCa
- Trade cycle: 7-15 days
- Average check: 55 BYN rubles ($ 21)
- Main marketing channels: Instagram (project site in the process of creation)
- Sales conversion: 85% (almost all incoming customers convert into buyers)
- Revenue for March: 30,000 BYN rubles ($ 12,000).
How to develop a project: ideas of the “Working Group”
Idea 1. Create a financial model
Expansion of the staff begins with calculating the economy and understanding at what volume of revenue an entrepreneur can generally hire people. Andrey will have to find out what his money is spent on, calculate fixed and variable costs. Experts recommend starting from the cost of the product.
What is the cost of
- Purchase of raw materials.
- Employee salaries.
- Depreciation of equipment.
- Other expenses (marketing, transport, customs clearance).
After calculating the cost, you need to determine the marginality of the business. One cannot do without financial leverage, and this, in Andrey’s case, is borrowed funds or reinvestment of profits. And then you need to work with a margin. Does the cost of his oysters really allow the business to grow and be profitable right now?
You can also play with the price and check if there is room for growth. Since Andrey’s business is aimed at premium clients, the difference of a few dollars will not embarrass them, experts are sure. There is a way to single out VIP-buyers without increasing the price – with “buns” of the loyalty program. Add accessories to the delivery of seafood: lemon, branded sauce, oyster knife,
Idea 2. Expand the product line
How many people in the country are interested in oysters at all? Probably a lot less than pizza lovers. It is enough to look at the statistics of queries in Yandex and Google. “It’s good if about three thousand people come out a month,” experts estimate. And even the most affluent client won’t eat an oyster every day.
A simple answer arises – in order to scale, the project needs to expand its assortment.
Today the client wants oysters, and tomorrow – fish dumplings. The audience suggested other options – crab phalanxes, caviar and snails.
Idea 3. Implement CRM
A simple word that small business is still afraid of. But in fact, a semblance of CRM can be created in a simple Excel table. It is there that all information about customers will be stored: which segment they belong to, what products they buy, whether they want to receive news about supplies and promotions, and so on. This way, neither the owner nor all of his employees will forget important information. This data is the foundation of business decisions.
Idea 4. Increase your promotion budget
At the moment, the project’s only point of contact with the client is Instagram. The Working Group advises to focus on “tasty” stories with beautiful visuals. An SMM specialist with glowing eyes will be able to cope with this task. A person should live by the topic of seafood – this is a prerequisite.
You can take a part-time specialist for a start. To keep him motivated to create, add a percentage of sales to his salary. A freelancer, of course, will come out cheaper, but there is no guarantee that he will work with a soul. Because emotion is not just a good picture. This is the atmosphere.
To absorb all the love for seafood, an SMM must “live” in the project team. Take pictures of a new batch of oysters with a shaking hand and generate creatives like “How to open an oyster with a hammer, sledgehammer and corkscrew”.
An SMM specialist must become a universal soldier who can write a story, take a beautiful photo, and set up a target. If the market does not produce such a genius, you can grow him within the team. Investments in training a beginner will pay off with interest.
Would you like to know what advice Andrey implements to upgrade his business? See the full version of the third edition of the Working Group.
You can get recommendations on the development of YOUR business in the new issue of the “Working Group”. Describe the question that you would like to sort out and send it to [email protected] marked “Working group”. We will invite the authors of the most interesting questions to the studio!
Partner of the spring editions of the “Working Group”