Start preparing your shop by making five decisions: who you are choosing products for, what need they meet, what must be paid before opening, which range you will test in the first batch, and how you will record the results. For costs, collect specific quotes. Before testing products, set a budget and a date to review sales.
Divide funding into stages and keep records of cash receipts and payments from the first transaction. Set the size of the initial batch, the test period and the criteria for the next purchase according to the products selected and the supply terms. The example below shows a calculation using illustrative figures.
Match the product range to customer needs
When choosing products, find out what needs they meet and what value they offer customers. For each planned product group, write down who will buy it, what task they need it for, and what result they expect.
Talk to potential customers. Ask them to identify three priority tasks, three problems and three desired outcomes. Use these priorities to choose products for the first test.
- Ask what the person is looking for the product to do.
- Find out what is preventing them from getting the result they need.
- Ask them to rank tasks, problems and expectations by importance.
- For each product group, write down the need it should meet.
Keep the responses. When reviewing the first batch, compare them with sales and customer questions. If the purpose of a product group is still unclear, clarify it before purchasing.
List your costs and collect quotes
Startup costs can vary considerably depending on the size and location of the shop and how you plan to display products and fit out the premises. Prepare a budget for your format. Check whether you need premises, equipment, stock, packaging and delivery. Add planned purchases and work.
Ask sellers, suppliers and contractors for price quotes for the goods and services you need. Use this working template:
| What to record | What to check |
|---|---|
| Product, service or work | Clarify what the purchase includes |
| Quantity, price and additional costs | Calculate the planned payment |
| Quote date and validity period | Check that it is current before payment |
| Launch stage and payment date | Assign the expense to the relevant budget |
| Amount actually paid | Compare the plan with what was done |
Record monthly payments separately. Rent, utilities and staff are fixed costs that the shop must cover regardless of sales. If these costs apply to your format, include them in your funding plan.
Allocate your budget by stage
To avoid spending a large amount all at once, divide your budget into stages. For example, plan separately for preparing the shop, testing the first batch and making subsequent purchases. For each stage, list the payments and the amount you are prepared to allocate.
Mark any expenses for which you do not yet have quotes. Confirm them before approving the relevant stage. Before placing a new order, review the funds available and the payments already planned.
Test products with a small batch
Selling a small batch is one way to test a product idea. Before placing a large order, assess the minimum order quantity, delivery times, price competitiveness and whether the products meet your quality requirements.
Before the first purchase, record the products, quantities, selling prices, sales channel, test budget and date for reviewing the results. Set criteria for continuing purchases in advance for your own test. Do not treat the illustrative figures in the example as ready-made benchmarks.
During the test, record the quantity received and sold, actual prices, cash receipts, payments and customer questions. After the test, choose an action for each item: reorder, test further or suspend purchasing. Record the reason for each decision alongside it.
Calculate the share of the batch sold and track cash flow
The share of stock sold over a given period shows the percentage of the quantity sold relative to the quantity received. For a single test batch, calculate it as follows: quantity sold ÷ quantity received × 100%. Record the test period alongside it. Set the reorder criterion separately.
You can track cash flow manually in a spreadsheet by recording every receipt and payment. Add expected payment dates and amounts to your working spreadsheet. After payment, enter the actual figures and the reason for any difference from the plan.
Illustrative example of a first test
Suppose an owner allocated UAH 20,000, bought 40 units of a product for UAH 12,000 and paid UAH 3,000 in other expenses. During the chosen period, they sold 20 units and received UAH 8,000. All amounts and quantities are illustrative: this demonstrates the arithmetic and is not market pricing, statistics or a promise of results.
- Share of the batch sold: 20 ÷ 40 × 100% = 50%.
- Remaining stock: 40 − 20 = 20 units.
- Remaining funds: 20,000 − 12,000 − 3,000 + 8,000 = UAH 13,000.
- After planned payments of UAH 5,000, UAH 8,000 will remain.
Before reordering, review unsold items, actual prices and expenses. Compare the new order amount with the funds remaining after planned payments.
Compare product group results in Torgsoft
After your first sales, review results by product type. In Torgsoft, sales analysis by product type shows trading results by product type and helps you see which product generates more revenue.
Use the results when reviewing your next purchase. Compare product groups with customer needs, costs and the available budget. Set the quantity for a new order and the terms of the next test separately.
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