Don’t begin your venture without a business plan. You will need to have a good plan in place to secure funding from you bank or financial provider. They will want to see that you have the potential to be profitable and that you can keep your business running efficiently.
When writing your business plan, you will need to cover things like what your company’s unique selling point (USP) is. That is, what makes you different from all the others in your field. You will also need to cover your projected costs and profits in the next three years.
Don’t forget to factor in wages, overheads and taxes as well. You will also need to have a breakdown of what each unit costs you and the price that they will retail at.
You can’t start your business if you do not have the financing in place. There are several ways that you can secure funding for your venture. You can bid to private investors, go to your bank to get a business loan, or self-fund.
If you choose the private option, be aware that the investors will want some stock in your company in return for your investment. Be sure you know how much you would be willing to hand over before you meet with them.
Don’t mix your personal finance and your business finances. It is important to keep them separate, especially if you have other people on the payroll. For this purpose, it’s best to get a merchant account. This means that all your business costs and profits will be run through this account. It will be much easier to keep a track of it for budgeting and tax purposes this way.
Sometimes it can be hard to get an account if you are a high-risk merchant specialising in things like firearms or the like. In this case, you will need to speak to a provider that offers high risk merchant accounts. Just like a normal merchant account, they will cover the payment process for your products.
Don’t use a shoddy delivery service for your product. Retailers are so often let down by their delivery services. It doesn’t matter how good your products are if they are constantly damaged in transit. This seriously erodes customer loyalty. That’s why it is important that you choose a delivery company that will look after your products like you do.
It can also be very frustrating for customers that order express delivery, but still, do not receive their goods on time. Make sure that you delivery provider can honour any next day and tracked options successfully.
Make sure your supply chain is secure before you go into business. Any savvy business person knows that have a good supply chain is essential to their success. If you cannot get the materials or products you need to fulfil your orders, this creates a delay in getting your product out and a lot of unhappy customers.
Unhappy customers are not good for your business. So make sure that the suppliers you pick are reliable and have excellent communication skills if anything does go wrong.