Beginning the Empire

Discussion in 'Growing and Managing a Business' started by Entré, Jan 15, 2010.

  1. Entré

    Entré
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    I really do not want to work for anyone, I don't want to be a minion, I want to be an owner.

    So I have thought up of my first business idea. It is so basic yet effective.

    I am looking for a provider of tablet, macaroon and fudge online currently. With this I will then hire a 13 year old or something to sell these door to door for 50p per bar.
    Until I find a provider I do not know how much profit I will get and plus I have to give the person 20-25% of the 50p.

    This is basic, but I am turning 16 on the 29th so it is a decent success. If I can find a few 13 year olds to do this actively then I could make a nice lump sum per week.

    I have already thought of one 13 year old who lives next door to me and I am sure that he would be interested in this. You see the 13 year old would earn a lot for their age and they would be interested in this.

    The parents would be for it, them earning their own money and it can be achieved locally.

    I remember when I was 12 I done this, and it is a fun experience. I remember buying jelly lollys at a Cash and Carry and selling them for 50p each. I made a nice amount of money. The only problems are:

    The person selling these may not be reliable and may not sell many.

    You never know this could be the foundations of a big company in the future. I will be also telling the person who is selling them to ask anybody who buys if they would like him to come round routinely maybe once per week. This means that I could have good customers.

    I will also be offering my worker/s monthly bonuses. I will be documented how much they have earned and have earned me in profit and give them a nice sum to make them want to continue working for me.

    Does anybody have any feedback for me or suggestions?
     
  2. DEADMAN

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    The problem only lies in the reliability of the person. You may not know how much products did they sell? However, it's a worth business in hand. I'm quite impressed with your thinking.
     
  3. Entré

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    I have done the numbers and this is not going to be for making money it is for my CV. This shows a lot of skills and will help find a job until I can open an amazing business.
    It will be good for the side.
     
  4. Fergal

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    Sounds like a great idea and you appear to have a good plan in mind. Will you be preparing the food products yourself? If you are preparing the product yourself, you will need to be very conscious of food safety and hygiene. Have procedures in place to ensure that the food is prepared in a standard, safe and secure manner every time.

    You could also ask some local shops or bakeries if they would be interested in stocking your products. Getting a contract with a local shop would could give you a reliable weekly sales level to help sustain the business and there is a lot less work involved in delivering a weekly order to a shop than selling the same amount of product door to door.

    I agree fully that this will be a great business learning experience for you and it will stand to you in anything you do in later life. However, you should try to make at least some profit from the beginning. Making a profit is the challenging part of any business and it is in working to make a profit that you will gain really valuable business experience.

    Good luck with it.
     
  5. Entré

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    I have done the numbers and have made an order.
    I can't make the product myself because I am a bad chef.

    Now I found a provider online and can get 24 bars of fudge, tablet and macaroon for £12 each. Which comes to £41 including delivery.

    I am going to get a few 13 year olds to sell them door to door and give them 20% of the money them make me before profit. Now I can make £17 every 73 bars sold that's PROFIT hard core profit. It's not much but it's my first ever proper venture where I am making an investment.

    I was not scared to do this, because you have to take some risks. I know that this will work.
    Also I will be speaking to the parents of the 13 year olds and letting them know that they are responsible for any missing stock.

    I know that I could pretty much double my profits if I sold the products myself but I don't see the point. If I can give a 13 year old some work experience and money by doing nothing really then why not? I will be making money from this and when I find a job to save up for my big business idea.

    The more 13 year olds who sell, the more bars I buy, the more money I make. This could end up as a big franchise.

    Also I am intrigued with you saying that I should ask if local bakers ect are interested in stocking this. Now is there anything I can easily make at home to do this with? Or can I actually do this with the bars I am currently getting?

    A bar in a pack of 24 is 50p each. I could sell them to the bakers for 80p and they could sell them for £1 each. This would be little profit for the bakers and it makes no difference to me as I'd be loosing this 20p per bar to the employees. So I may approach a bakers at my local mall.

    This is exciting guys, I will keep you up to date. If I become a big entrepreneur millionaire then I will be back :)
     
  6. Fergal

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    I admire your excitement and I really feel that this will be a great learning experience for you. Be careful as to where you buy the products, make some inquiries to ensure that your suppliers adhere to legal health and safety standards. The last thing you want to do is give any of your customers food poisoning.

    If you are selling to local shops for £0.80 you will probably find that they will want to sell the product for something in the region of £1.50. A £0.20 mark up on a product they purchase for £0.80 will not be enough for them to cover their overheads, such as electricity, insurance, staff costs, rent, etc. These are the kind of things you will learn as you work in the business and this experience will stand to you in the future, regardless of what career or business you pursue.

    It would still be a good idea to contact your local retailers and ask them if they would be interested in stocking your products. There's probably no need for you to speak to them about what they could resell the product for. They will know their business and their customers well and will themselves have a good idea of what to charge.

    As regards to what products you could make at home to sell to local bakers and retailers, I'd suggest the following approach. When approaching these retailers with the tablet, macaroon and fudge products have a good look at the other products they are selling. Ask yourself, if you could make any of these products at home? Then spend some time working out how much it would cost you to make them and how much you would need to sell them for, in order to make a profit.

    When you have some figures together have a chat with the business owner / manager to get an opinion as to what they could pay you for that type of product. If their suggested price is lower than what you could sell them for ask them if they could pay your price. This will give you an indication as to whether you could sell it to them profitably.

    Also ask the business owner for ideas as to other products you might be able to manufacture. You'd never know they might have a product in mind that they can't source locally or that they can't source at the right price.

    As always, good luck with everything and please keep us posted.
     
  7. Entré

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    Thanks for that Fergal you've really told me a lot there and I will definitely take your advice.
     

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