Default 1st attempt at business and looking for advice!Hi everyone, my names ben, im

Discussion in 'Growing and Managing a Business' started by MrV, Jan 12, 2014.

  1. MrV

    MrV
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    Hi everyone, my names ben, im 29 and from the west mids UK. After working for companies for 12 years ive decided to try and start a business. This is going to be a massive project for me as im hoping one day to be able to go fully self employed, I have a lot to lose as me and my wife to be have a mortgage and a 2year old girl, which is why I need as much advice as possible!

    Now onto my plan, I have identified a product which I wish to sell, that is used in the aquatic industry. It is currently not available from UK sellers, is a niche product, I believe the demand is there for it and I can achieve great margins. I would need to get the stock shipped from america, and I have a supplier ready and waiting, who I have agreed trade prices with and who is happy to consider giving me sole rights to import to the UK, should they be happy with my finalised business plan. I'am extremely active within the aquatics industry which is why I know that there is a market, and demand for the product. To be honest I cant believe my product is not readily available over here, in the USA it does very well indeed.

    Now onto my questions. I apologise if these have obvious answers, my lack of knowledge and experience is severely halting my progress.

    How to sell? Do I sell to the trade only or do I get a business loan to buy stock and then list it on sites such as ebay?

    Method of order? Do I gather orders from suppliers, get deposits and simply order the stock and then gather my profit once the orders are completed?

    What is stopping my potential trade customers going straight to the source instead of using me?

    Why would a company place an order with me without knowing anything about me etc?

    My plans to get this moving are basically to register the company, then contact as many shops and sellers within the industry to see if they are interested in placing an order with me, once I have orders to then place an order with my supplier.

    Again apologies if when you read this it seems like I havent got a clue and there are obvious answers, im finding it all a bit confusing
     
  2. Sean_DeSilva

    Sean_DeSilva
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    How to sell it – see if you can negotiate consignment terms. Show the supplier how you plan to gain them new business and they will be more likely to accept those terms.

    what is stopping you from being sidestepped? The only thing that would really prevent them involves your contracts. See if you could gain exclusive distribution in the geographic area you're targeting.

    You bring up the trust issue. Work on that and build a case for why you're trustworthy. Also realize that sales are made on more than just the trust factor. After all, you're offering something of value, Right? Shouldn't that be part of the reason that the company would want to do business with you?

    Personally I would work on finding a supplier who will accept consignment terms, and then go to your prospective buyers and offer them the inventory for nothing out of pocket. The trick with this model is finding a supplier who will offer consignment terms, and you sound like you're fixed on one particular product already. If you have the dedication to continue pushing at this business and working your way past the obstacles, I think you will be well served by flexing on the product and focusing on gaining favorable trade terms.

    Hope this helps
     
  3. bizwizgenie12

    bizwizgenie12
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    Marketing Your Product - Questions To Answer

    Hi,

    Congratulations on overcoming the psychological hump of getting past the employee mold and thinking like an entrepreneur. That is half the battle won already!

    You plan to enter the aquatic business, and in your model you plan to import a niche item from the US and sell it in the UK market. That your seller is willing to give you sole rights to sell the product in the UK market eases this concern; though nothing prevents your competitors from sourcing the same item from some other party.

    <<How to sell? Do I sell to the trade only or do I get a business loan to buy stock and then list it on sites such as ebay?>>

    Depends on whether you can invest in sufficient trading-stock. Stocking means that when the product starts selling, you can service inquiries instantly (by showing demos etc) and fulfilling customer orders with zero waiting.

    <<Method of order? Do I gather orders from suppliers, get deposits and simply order the stock and then gather my profit once the orders are completed?>>

    Depends on the supplier's arrangement with you. An ideal situation from your point of view is to have zero stock; and when a customer places an order (with or without advance but firm commitment), execute the order and pocket the margin.

    <<What is stopping my potential trade customers going straight to the source instead of using me?>>

    As I said earlier, if you have a water-tight arrangement with your supplier making you the sole seller of their item in your territory, then you do not have much to worry. But beware competitors who might take very little time to figure out alternative sources to procure the same product from other sellers!

    << Why would a company place an order with me without knowing anything about me etc? >>

    That is where your marketing skills and savvy come into play. You may use all the resources available to you at negligible costs - such as building your website - to raise your presence from an unknown entity to somebody who _appears_ to be reliable.

    << My plans to get this moving are basically to register the company, then contact as many shops and sellers within the industry to see if they are interested in placing an order with me, once I have orders to then place an order with my supplier. >>

    Sounds good!

    All the best.



     
  4. MrV

    MrV
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    many thanks for the valuable replies, I will take all advice onboard and you have helped me a lot in deciding my next move, I really appreciate it, thankyou
     
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