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What Are COGS, Anyway?

One of the first things a smart food entrepreneur does is to calculate their cost of goods sold (COGS).

What Are COGS, Anyway?

One of the first things a smart food entrepreneur does is to calculate their cost of goods sold (COGS).

This information is vital for pricing your product correctly, and it's not a one-and-done type of calculation: it should be done regularly in order to ensure maximum profitability.

As described in the link below, COGS are any costs involved in the production of a unit of your product. However, it doesn't include everything: operating a successful business includes many marketing, branding, and other costs that aren't calculated in COGS and still need to be factored into your business P&L.

Managing and optimizing COGS requires diligence and strategy. A number of tips on how to minimize cost and maximize profitability can be found here.

Read more on COGS below:

[pillar_card type="vertical-link" image="1757" title="Sources Of Equity Financing For Food Startups" subtitle="Who is funding food businesses? These guys. Check out this list of equity financing for food startups and growth companies." link="https://realfoodmba.com/list-sources-of-equity-financing-for-food-startups/"][/pillar_card]

 

One of the first things a smart food entrepreneur does is to calculate their cost of goods sold (COGS).

This information is vital for pricing your product correctly, and it's not a one-and-done type of calculation: it should be done regularly in order to ensure maximum profitability.

As described in the link below, COGS are any costs involved in the production of a unit of your product. However, it doesn't include everything: operating a successful business includes many marketing, branding, and other costs that aren't calculated in COGS and still need to be factored into your business P&L.

Managing and optimizing COGS requires diligence and strategy. A number of tips on how to minimize cost and maximize profitability can be found here.

Read more on COGS below:

[pillar_card type="vertical-link" image="1757" title="Sources Of Equity Financing For Food Startups" subtitle="Who is funding food businesses? These guys. Check out this list of equity financing for food startups and growth companies." link="https://realfoodmba.com/list-sources-of-equity-financing-for-food-startups/"][/pillar_card]

 

One of the first things a smart food entrepreneur does is to calculate their cost of goods sold (COGS).

This information is vital for pricing your product correctly, and it's not a one-and-done type of calculation: it should be done regularly in order to ensure maximum profitability.

As described in the link below, COGS are any costs involved in the production of a unit of your product. However, it doesn't include everything: operating a successful business includes many marketing, branding, and other costs that aren't calculated in COGS and still need to be factored into your business P&L.

Managing and optimizing COGS requires diligence and strategy. A number of tips on how to minimize cost and maximize profitability can be found here.

Read more on COGS below:

[pillar_card type="vertical-link" image="1757" title="Sources Of Equity Financing For Food Startups" subtitle="Who is funding food businesses? These guys. Check out this list of equity financing for food startups and growth companies." link="https://realfoodmba.com/list-sources-of-equity-financing-for-food-startups/"][/pillar_card]

 

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