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MenuHow do I start a successful business for a beginner with a low budget? Buying wholesale then reselling? What products to start with and where to sell?
I have buying wholesale iPhone cases and tried to sell them on ebay but none sold at all. I am looking for something else to start off with to buy and sell to make some profit.
Answers
Budget is definitely important for a successful business, but it is not everything! As a young entrepreneur, I started a similar business earlier in my career selling eyeglasses on eBay. I created an eBay store, worked on advertising, and was fortunate with my results. I would love to speak with you about starting a website and marketing effectively to consumers with a very small budget. The biggest recommendation I can provide is to test different services at a low budget to see what works. Rather than spending thousands of dollars on a marketing agency, there are many services that can help your iPhone case business in marketing effectively. Feel free to reach out to me!
First lesson, validate your market first. Start with small experiments in selling and marketing before you take on bigger deals. Start with first base before you try for a home run. There is no magic answer - if there were, there would be tons of very rich people which may not make sense. Start doing smart experiments - research, go to conventions, get online, interview people in different markets, look at the trending stats on google and youtube.
Budget is important but not a 100% essential ingredient for a startup. You should consider employing some of the lean methodologies if you want to optimize on the budget you have .
Startups which deal with information management typically require intellectual capability more than financial muscle. So you can consider starting an internet related startup.
Similarly selling on-line helps you to minimize the marketing costs as you can reach out to initial critical mass using various social media channels/forums to get going.
I would love to have a call with detailed guidance on each of the sub-questions.
You may want to consider a dropship business where you don't need to buy inventory at all and have suppliers shipping directly to your end customer.
Before you spend any money on inventory, survey your target market and build up demand. Be creative in designing an engaging campaign that allows you to "presell" purchase orders (simply taking a poll on who actually would be a paying customer). Give these individuals a discount, which in terms of your cost basis is simply the price of the risk reduction when you go and make your first inventory purchase.
Once you've acquired enough demand, negotiate your purchase price with the suppliers and arbitrate the sales with those who expressed interest.
You'll be cutting into your margin, but you will be reducing your capital risk, and "bootstrapping" your market demand + cashflow for future runs.
Have you spent any time to learn about coywriting? My best guess is that leaning some basic copywriting techniques will help you to sell whatever you eventually decide to start selling.
Whatever you do, first ask yourself "what are my strengths". Do not just follow some friends which do good money on this or that. Everybody has his / her own strengths and talents.
If it is ok with trade, then you have to do marketing research:
- which product
- target group
- market price
- production cost
Do this for all products you have in mind. It is difficult but worth.
The difference between the market price and production cost will tell you whether to go or shift to another.
all the best
Val
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You're definitely going the wrong direction. That's my opinion. But I'm right, and here's why: Your domain strategy is hyper-extended. You've got 4 domains in .CO.UK – hopefully 8 counting .UK rights. That's all well and good for a British audience. But you deliver work online; so why not appeal to a global audience? Here in the USA, ccTLDs (a.k.a. country codes) are not recognized. Your business will look strange and be misremembered as .COM. That means your marketing will be inefficient; you'll leak traffic to Google, parked PPC pages, or even competitors who develop sites with the same brand name(s) in the same niche! Meanwhile you'll pay extra in ongoing advertising costs to compensate. And you don't own the 4 corresponding .COM domains. I checked. They're owned by a pair of people / companies – both known to me already. To acquire these 4 matching domains, you'd need to spend about $10,000. That's based on the typical list prices these guys set, which you can verify, I'm sure. On top of this, you'd face brand protection issues for at least 4 distinct names. That obligates you to further domain purchases or risks ... in proportion to the number of brand names you're attempting to operate. After all, WantApp is confusingly similar to WantApps; and WantWebsite resembles WantAWebsite. And let's not forget .DESIGN and .WEBSITE, which means your WantDesign.co.uk is competing against both WantDesign.com and Want.Design, while your WantWebsite.co.uk has to shout extra-loud to be heard above WantWebsite.com and Want.Website. Things get complicated fast! You'd eventually face competitors with these names unless you bought them all. You might even get embroiled in trademark disputes, which are no fun. For that amount of money ($10k upwards), you can buy a really great domain name and consolidate all your efforts on a single brand name with worldwide appeal and a single website. In the long run, going the way you're going, you will pay thousands of pounds one way or another. Maybe you won't buy those other domains, but you will put extra cash, sweat, and time into marketing. You'd probably lose a few customers over the years as well, since they'd go somewhere other than your site and find other people to hire. I also have concerns about branding with multiple domains, managing multiple websites, or asking customers to bounce around between several sites. But there's no space to go into that. The domain issues already sank your battleship, I'm afraid. If you'd like help selecting a single unified brand name for all your services – which is what I recommend – let's talk. Naming and domain procurement are both areas I specialize in.JP
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Great question, this is something that can be handled with a proper deal structure involving some vendor financing. I recently did a video about this very topic for one of my YouTube followers. Check it out here: https://youtu.be/hWm4ZQxWlEw You basically make the vendor's outstanding gift certificates a 'currency' which can be used by the buyer to repay the vendor loan. It's a net-sum game for the seller since he's already received the cash without having to provide the goods or services. Hope this helps. Feel free to schedule a call anytime you have a question about business transactions. DavidDC
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