new business

[TW]Fox;20748713 said:
Yet you have your business plan based on using them?! Incredible.



There is numerous material out there for you to read and research including testimoney from other business owners.

I'm amazed you've not done this yet but now would be a good time to start before you even think about obtaining money from anywhere.

Have you got projected sales figures, estimated margin, etc? What research have you done to enable your projections to be as accurate as possible?
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I've said that Groupon was one of the routes I'm looking into. If groupon turns out to be as bad as you say it is then why on earth would I follow through?

I'm looking down all avenues. I cant come into this narrow minded hence the reason for this thread.

I mentioned earlier on that a full report on costs would be drawn up once I've received a decent number of price lists from suppliers.

With all that said I'd like to think I'm going about this the right way (calling suppliers, deciding whether there is really a need for the service I plan to offer, etc). I dont plan on kicking any of this off until both myself and my partner are 100% clear on what we expect and everything has been documented.

If you or anyone else has advice then please, lay it on me (I want to know if you think something could be done better). However, if you just want redicule my methods then please save the keystrokes and leave the thread.
 
As mentioned a bank won't lend you the money so you'll need to raise it yourself.

Are you just selling a product?
 
Duke said:
As mentioned a bank won't lend you the money so you'll need to raise it yourself.

Are you just selling a product?
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Will be selling (providing we have a decent marketing plan lol) a number of products.
 
DAIR said:
I've said that Groupon was one of the routes I'm looking into. If groupon turns out to be as bad as you say it is then why on earth would I follow through?
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You will generally find you need to discount by about 50% of the RRP and then give Groupon half your income as well. I would never use them for my business.

I started in ecommerce about 8 years ago and funded my early stock with a credit card. Just find the money from anywhere you can.
 
Don't just focus on suppliers costs, business rates, electric, server hosting, merchant account, SEO, to mention a few other costs that need to be thought about.

If you think your turnover is going to be 73k then you need to get VAT registered, also remember your suppliers will sell to you excluding VAT so when it comes to purchasing you have to add the VAT on
 
DAIR said:
However, if you just want redicule my methods then please save the keystrokes and leave the thread.
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i dont think anyone was rediculing your methods, only pointing out that you had not completed the research yet or found out the facts of figures.
 
Paul11 said:
i dont think anyone was rediculing your methods, only pointing out that you had not completed the research yet or found out the facts of figures.
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Thats fair enough.

Please note what I have highlighted.

Yes this area hasnt been completed yet. Please know it is being done.
 
As someone that works for a company that helps people set up e-commerce sites, I can tell you that it's very difficult. The majority of new sites we launch for people flop, because they simply didn't realise how competative e-commerce is.

You have to bear in mind that shoppers can check the price of something at 20 different sites in the space of a minute. The chances are that as you are starting out and buying less than 1k of stock from each supplier, you will not be getting it at the same price as your competitors, who possibly have accounts on which they buy hundreds of thousands a year.

Our big customers have tried to do stuff on facebook, but the vast majority of their business on their websites comes from Google (natural listings, paid listings and the product search) and repeat custom.

Even though you are only paying 5k for stock, you still might find you have most of that left in 6 months, so if you can buy the goods as you receive orders for it, or even direct dispatch, that might work better for you as it would lower your risk.

I don't mean to scare you off, but you should know that the odds are against you.

DAIR said:
Yeah, I agree now.

We'll give it a go without seeking assistance from a bank or scheme.
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You will need to speak to the bank about it even if you don't want financial help, because you will need an internet merchant account (unless you are going to be a micky mouse site that just takes PayPal). I would advise you start this process before worrying about suppliers, as the process can be long and they may want to impose some unpleasant conditions, as they will view you as high risk.
 
Redrum said:
As someone that works for a company that helps people set up e-commerce sites, I can tell you that it's very difficult. The majority of new sites we launch for people flop, because they simply didn't realise how competative e-commerce is.

You have to bear in mind that shoppers can check the price of something at 20 different sites in the space of a minute. The chances are that as you are starting out and buying less than 1k of stock from each supplier, you will not be getting it at the same price as your competitors, who possibly have accounts on which they buy hundreds of thousands a year.

Our big customers have tried to do stuff on facebook, but the vast majority of their business on their websites comes from Google (natural listings, paid listings and the product search) and repeat custom.

Even though you are only paying 5k for stock, you still might find you have most of that left in 6 months, so if you can buy the goods as you receive orders for it, or even direct dispatch, that might work better for you as it would lower your risk.

I don't mean to scare you off, but you should know that the odds are against you.



You will need to speak to the bank about it even if you don't want financial help, because you will need an internet merchant account (unless you are going to be a micky mouse site that just takes PayPal). I would advise you start this process before worrying about suppliers, as the process can be long and they may want to impose some unpleasant conditions, as they will view you as high risk.
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Thanks for the heads up.
 
Depending on what you want to sell, some suppliers don't touch online traders at all unless they have an existing bricks and mortar shop
 
j0s said:
Depending on what you want to sell, some suppliers don't touch online traders at all unless they have an existing bricks and mortar shop
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I ded receive a similar response from one supplier. I mangaged to get them on side though. So I guess I was lucky.

Shall have to see what the others say....
 
Nitefly said:
I can't help but smile at the OCUK 'dragons'...
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Likewise :D.

Redrum speaketh the truth. I sell on eBay as well, margins are smaller, but I use it as a gateway to y ecommerce platform, does not sell as much, but it is selling more. There is a lot to think about in the first place. Sell everything remotley related to your chosen line, anything that makes a profit basically!

As for accounts, make sure you do not overextend yourself, this is very very easy to do, and the reason most fail. I started with cash accounts, most suppliers will take you on with a cash/card account, as there is zero risk to them. As for the bricks and mortar store thing, ive never come across a supplier that has said that! But then, im probably in a different area of the market to the OP.

As said DAIR, im happy to help with advice, even day to day running, ive made mistakes, everyone does, better to learn from someone elses though :D.
 
I started my own business, funded some of my initial capital through the princes trust. got a £2k loan and have to pay 2,200 back in total. also got a grant which is dependent on your postcode. things might have changed somewhat since then (couple of years ago) but that's how it was.
 
PhillyDee said:
As for accounts, make sure you do not overextend yourself, this is very very easy to do, and the reason most fail. I started with cash accounts, most suppliers will take you on with a cash/card account, as there is zero risk to them.
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Did you drop ship? Did you keep inventory? If not how did you maintain reasonable delivery times?
 
op are you saying you don't have £5k to invest in stock full stop or you have £5k but are not able/willing to invest in stock? if it's a case of you not having £5k then you need to think things over as you will be amazed (well, maybe not amazed but maybe you haven't realised) about just how fast you will burn through £5k, couple this with your cash flow and you can find yourself in trouble.

do you have any family members you can approach? ask them if they fancy being a director or silent partner, makes the process of asking a little easier but have a lot of facts ready. exhaust all options such as this before getting a bank loan.
 
Inventory was a pain at the time, but found some awesome software that now makes it a doddle. Its called Linnworks by Linnsystems, I pay £58 per month for it, and it basically runs my entire business (it doesnt do accounting unfortunately!) It syncs between eBay and My zencart store, it also does play, and amazon, as well as magento and cubecart etc. Pulls in all orders, picklists, inventory, when I process orders it automagically prints out the address labels with stamps on.

I used smartstamp initially coupled with a label printer to send out goods, and just popped them in the nearest postbox. Now I have a packetpost account and a PPI impression with the Royal Mail. Everything is bagged and tagged and just passed to the post office/delivery office.

I have never dropshipped.

Because I started with so little, its been slow starting, but turned over 32K in my first year. Roughly Double that in my second, and Im soon having to register for VAT.

I also still work full time. Will be a while yet before it will sustain me full time!

I would be interested in what DAIR is planning on selling, as some markets are very very difficult to turn a decent profit on! Each and every one has its own issues. clothing especially as nothing ever fits people, and I hear the amount of returns is horrendous!

DAIR - Set up your trust! That way I can email you some details and stuff!
 
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PhillyDee said:
Inventory was a pain at the time, but found some awesome software that now makes it a doddle. Its called Linnworks by Linnsystems, I pay £58 per month for it, and it basically runs my entire business (it doesnt do accounting unfortunately!) It syncs between eBay and My zencart store, it also does play, and amazon, as well as magento and cubecart etc. Pulls in all orders, picklists, inventory, when I process orders it automagically prints out the address labels with stamps on.

I used smartstamp initially coupled with a label printer to send out goods, and just popped them in the nearest postbox. Now I have a packetpost account and a PPI impression with the Royal Mail. Everything is bagged and tagged and just passed to the post office/delivery office.

I have never dropshipped.

Because I started with so little, its been slow starting, but turned over 32K in my first year. Roughly Double that in my second, and Im soon having to register for VAT.

I also still work full time. Will be a while yet before it will sustain me full time!
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can i ask what your profit was/is (i''ll understand if you don't wish to disclose this)
and how do you manage any returns?
 
Nah, not telling you that :p. Decent enough, and because of what I sell, I get few returns. Linnworks also handles that part of it. You will need to read up on DSR and follow them to the letter. Not that I take any wages, its all invested right back into it.
 
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