How Homecourt Balances Cash Flow for a Successful 2025

LearnJanuary 17, 20255 min read
Warren Brown, Head of Product

For direct-to-consumer (DTC) brands, balancing supply chain timelines with cash flow is critical. Sarah Jahnke, co-founder and CEO of luxury homecare brand, Homecourt, joined Emilie Schario, Lead Product Manager at Settle to discuss how growing DTC brands can optimize operations and forecast effectively, even without historical data.

Navigating surges without historical data

During Homecourt's early days, no one expected to be accused of "ruining Christmas." Yet that's exactly what happened when the young brand faced its first holiday rush.

Now in their third holiday season, Homecourt has learned what many startups discover the hard way: Q4 is a make-or-break quarter. Sarah Jahnke, who witnessed this pattern at L'Oreal before joining Homecourt, knows that October through December typically drives 40% of annual sales. But CPG brands need data to predict demand, and new brands often start from zero. She shared some tips for how to plan, even when you’re working with a blank slate:

Ensure you have enough supply to carry you through the peak season

If December is your busy season, consider shipping products to retailers in September. If you wait too long, your 3PLs will be overwhelmed, and you may experience shipping delays.

Make sure your 3PL and fulfillment partners can keep up with demand

Coordinate with your warehouse and 3PLs to make sure they can keep up with your demand. Give them enough notice and determine a clear timeline to handle your peak season.

Plan your finances

Smart financial planning requires both top-down (overall growth targets) and bottom-up (SKU-level) analyses when forecasting. The top-down approach starts with clear goals: “We’re going to double this year. We’re going to grow by 100%.” From there, look at the seasonality of the business and map out potential growth avenues.

Ground those bold goals with actuals uncovered in a bottom-up analysis. Factoring in landed costs—like freight and production expenses—can help you better understand margins and profitability at the SKU level. Dive deep into how each SKU performs and compare them with your sales patterns so you can get a clear view of your portfolio’s performance.

Holding yourself accountable to plan

To stay on track, Jahnke recommends monthly consensus meetings to bring together finance, marketing, sales, and operations. These meetings should include a comprehensive performance analysis focused on three critical areas:

  • Percent change - Month-over-month or year-over-year comparisons to provide historical context
  • Percent penetration - Measurement of each product’s importance to overall business goals (e.g., if a product accounts for 30% of your sales but only has a 1% margin, its penetration is low)
  • Performance vs. plan - Measure the results vs. the expected outcome and tune future concepts based on that

Jahnke emphasizes the importance of analyzing SKU performance to guide decisions. If a product accounts for 30% of your sales but has only a 1% margin, reviewing its COGS might uncover inefficiencies—or confirm it’s better to focus on higher-margin SKUs that drive profitability.

On the contrary, if a product is up 80% year-to-date but projections show a 60% decline for the rest of the year, take a closer look—it could still have upside potential.

Advanced planning tips

As your brand grows, your ordering strategies may need to evolve. If your sales patterns are consistent but product prices fluctuate throughout the year, exploring a bulk-ordering strategy might be beneficial.

For manufactured products like Homecourt’s, brands can save significantly by ordering ingredients in bulk upfront rather than purchasing smaller quantities throughout the year. However, this approach requires careful cash flow management and is usually best for more mature or well-funded brands.

What if you haven’t started?

If you haven’t yet explored a 2025 budget yet, don’t worry. To get started fast, take stock of your Q1 inventory needs. From there, break planning into manageable, quarterly checks and analyze historical data when possible—keeping in mind that Q4 typically accounts for 40% of annual sales.

Additional ways to scale in the new year

Settle simplifies planning for brands like Homecourt by turning complex processes into manageable strategies. Whether it’s balancing profit margins, managing product data, or streamlining forecasting and financing, Settle helps brands plan smarter for the year ahead. Discover more insights by watching the full webinar here.

Want to remove the complexity when planning in the new year?

Request a live demo to take Settle for a spin

Glossary

Landed costs - The cost it takes produce your items. For example, if you’re buying a finished good and you’re getting it to a warehouse in a location, you have to consider the unit cost + freight shipment + tariff + insurance costs.

COGS - Costs of Good Sold. This is where the landed cost of the unit is tied to the sale date. Calculating COGS can be challenging because you have to tie the costs incurred in the production and landing of the good to when an item is sold. Many CPG brands use Settle to calculate their COGS without the stress.

SharePlatform iconPlatform iconPlatform icon

Subscribe to our newsletter


OR

Recommended Articles

What Are Net Terms?
Learn4 min read

What Are Net Terms?

Making use of net terms can enable both buyers and vendors to increase their profitability and sales dramatically. This is what net terms are.

Settle Spotlight Series: Q&A with Vividly
Learn9 min read

Settle Spotlight Series: Q&A with Vividly

We sit down to chat with Alyshah Walji from Vividly, a trade promotion management (TPM) software built by and for the consumer packaged goods industry.

What is the Cash Conversion Cycle?
Learn6 min read

What is the Cash Conversion Cycle?

A company’s cash conversion cycle can speak volumes about its operational efficiency and financial stability. It can also determine whether people get paid on time.

Accounts Receivable Factoring 101
Learn4 min read

Accounts Receivable Factoring 101

Accounts receivable factoring can help companies can improve their financial stability and cash flow. We’ll explain what it is and how it's beneficial in our guide.

How to Create an Invoice
Learn6 min read

How to Create an Invoice

Creating invoices can be tedious, especially for new businesses processing everything manually. Learn how to create invoices effectively and efficiently with this detailed guide.

Settle Spotlight Series: Q&A with SourceMedium
Learn14 min read

Settle Spotlight Series: Q&A with SourceMedium

In this month’s Settle Spotlight Series, we chatted with Will Holtz from SourceMedium about how interconnected data can be a superpower for brands in hyperscale mode.

Why Supply Chain Visibility Matters and How to Achieve It
Learn5 min read

Why Supply Chain Visibility Matters and How to Achieve It

Improving supply chain visibility is becoming a priority for many companies, as it’s essential for streamlining operations, boosting efficiency, and maintaining strong customer satisfaction for consumer brands.

Do I Need an ERP to Manage My Supply Chain?
Learn4 min read

Do I Need an ERP to Manage My Supply Chain?

Effectively managing a supply chain is essential for any consumer brand working with a network of suppliers, distributors, and partners. If you're considering an ERP for your business, here are some key factors to evaluate to ensure it meets your supply chain needs.

The 2024 Settle Staff Picks Holiday Gift Guide
Learn2 min read

The 2024 Settle Staff Picks Holiday Gift Guide

Do you really need another gift guide this time of year? Our Settle team spends so much time obsessing over our customer brands, that the right answer is obviously yes. We have compiled the inaugural Settle Staff Picks Holiday Gift Guide, with the most fire small brands out there. So read on for ideas from stocking stuffers to travel accessories – for everyone on your list. And join us in shopping small this holiday. 

Settle 2023 Product Wrap
New Feature3 min read

Settle 2023 Product Wrap

A year in review of Settle's product releases that make running CPG brands easier.

Your purchasing process. Made simple.
New Feature2 min read

Your purchasing process. Made simple.

We brought simplicity to bill pay. Now we’re bringing it to the purchasing process, with end-to-end support that takes a load off your plate.

Invoice vs. Receipt: What's the Difference?
Learn6 min read

Invoice vs. Receipt: What's the Difference?

Invoices and receipts are similar in concept, but differ in the details. Here’s what differentiates invoices from receipts, and why it’s important to understand.

The CPG Guide to Managing Tariff Uncertainty
Learn2 min read

The CPG Guide to Managing Tariff Uncertainty

Proper planning is key to protecting profit in times of tariff uncertainty. With potential plans to impose a 60% tariff on Chinese goods and a 10% to 20% tariff on other imported goods, many CPG brands are taking 4 key steps now so they don’t get a shock to their COGs.

What is an A/P Aging Report?
Learn6 min read

What is an A/P Aging Report?

The Accounts Payable Aging Report is an essential tool for businesses with a large number of accounts payable to track. Here’s a general breakdown of A/P Aging Reports.

What Are the Consequences of Equity Dilution?
Learn5 min read

What Are the Consequences of Equity Dilution?

Equity dilution can be a very concerning process for shareholders who are unfamiliar with its consequences. This is how to avoid equity dilution and keep stocks healthy.

What is the Accounts Payable Process?
Learn4 min read

What is the Accounts Payable Process?

Accounts payable (AP) refers to all the payments that a business owes its suppliers and creditors. Neglecting your accounts payable process can lead to production and supply issues.

Black Friday CPG Prep Checklist
Learn6 min read

Black Friday CPG Prep Checklist

Black Friday sets the tone for your business’ holiday season. Start early on forecasting demand, devising marketing strategies, and preparing your site.

How to Evaluate Accounting Firms
Learn7 min read

How to Evaluate Accounting Firms

Figuring how to find the right accounting firm for your company can be difficult. Here’s how to choose the best accounting firm for any business.

A Guide To Inventory Management for CPG
Learn6 min read

A Guide To Inventory Management for CPG

Learning to navigate inventory management can be a tricky part of growing your brand. Check out our guide to inventory management to find out more about it.

Non-Dilutive Funding Guide for CPG Brands
Learn7 min read

Non-Dilutive Funding Guide for CPG Brands

A popular source of funding is financing from angel investors and VCs. Yet many companies fail to recognise non-dilutive funding — where no ownership is lost.

Navigating Distribution And Retail Margins for CPG Brands
Learn8 min read

Navigating Distribution And Retail Margins for CPG Brands

For emerging CPG brands, navigating challenges like supply chain disruptions and retail changes underscores the critical importance of understanding and managing retailer and distributor margins, as it directly impacts profitability and success in the industry.

How to Find a CPG Distribution Partner
Learn5 min read

How to Find a CPG Distribution Partner

Partnering with the right distributor is arguably one of the most essential tasks for a retail company. Find out what to look for in distribution partners and how to source them.

Accounts Payable vs. Accounts Receivable
Learn5 min read

Accounts Payable vs. Accounts Receivable

Understanding accounts payable and accounts receivable is an essential part of business workflow. So how do they differ? Learn more about them in this guide.

An Introduction to Cash Flow Forecasting
Learn6 min read

An Introduction to Cash Flow Forecasting

A company’s ability to make a cash flow forecast is essential in the world of modern business. Here is everything you need to know about cash flow forecasting.

What Is Amazon FBA and Is It Right For You?
Learn7 min read

What Is Amazon FBA and Is It Right For You?

Using Amazon FBA is a great way for companies to expand their scalability and fulfillment abilities. Here is how it works, and how businesses can benefit from it.

How Long Does a Wire Transfer Take
Learn7 min read

How Long Does a Wire Transfer Take

Wire transfers can be the quickest method of exchanging funds. Knowing how long it takes can help determine whether wire transfer is the best solution.

Guide: The ABCs of cashflow
Learn2 min read

Guide: The ABCs of cashflow

We put our heads together with the folks at IndieCPG to create a guide to the basics of cashflow for new (and maybe even not-so-new) founders.

Settle blog

Insights in your inbox

Join our newsletter and never miss an update on Settle's latest features and industry trends.