Before you get to this next stage you will have needed to do the following;
1. Researched the idea, the market and suppliers.
You have an idea…
You know the market your idea / products are going to appeal too…
You have found a number of suppliers who are going to provide you with the products you require.
2. Written a business plan.
This will iron out the simple problems in your business and turn a simple idea into a profitable plan. A good quality plan will ensure your business has more chance of success. (See part 1 for more information on a business plan)
3. Ordered tester products to ensure the quality, design and supplier is all genuine & good quality.
You have seen all the products you want to sell… You have found the cheapest supplier… You’ve ordered 10,000… HOLD IT RIGHT THERE… Before you place that order for 10,000 have you ordered one? Or a sample?
You want to ensure that your supplier meets a number of things when placing this order;
Customer Service – Are they easy to contact, send them a message and explain you are buying a sample and may want to buy more in the future.
Dispatch & Delivery Time – Are they quick at dispatching your item, if there slow at just sending a couple of items what are they going to be like with 10,000 for example. When the package arrives has it come with a reliable company, is it packed well. You want to be sure that you’re 10,000 arrive safely and are insured if the item is of high value. Again why you would want to ensure its all well packaged.
Quality – No doubt the most important thing to check…
a. Does the product fore fill its purpose?
b. Does it meet simple criteria of a product like this? – Could it be improved, or could you find one which fore fills the purpose of this item better?
c. Does the item work, as it should?
d. Does the item match that of the description from the place in which you ordered the item?
Don’t be afraid to repeat this process with a number of suppliers over all your items, it is better to get it right when its only a few pounds at stake rather than a few hundred, or worse – Your companies reputation as it is just starting out.
If you are in any doubt try somewhere else to compare. And remember, just because the item is the cheapest, doesn’t necessarily its going to be the best! People will always pay good money for a good quality product.
4. Got funding in place.
You may have saved the funds for this project yourself, or you may be taking out a loan from the bank in order to set up your business.
Either way ensures you have budgeted well… if you are in doubt contact a financial advisor or accountant. It may cost money, but it’s a much higher cost should you get this wrong.
Are you completely quitting work?
Taking a sabbatical?
Sure it’s a personal question, but often one, which can be put to the back of peoples mind in the heat of the moment… If you are currently earning £15,000 and just scrapping by then you are going to want to take home a £18,000 salary from your own business to have a good financial work and life balance.
If you are currently earning £50,000 then perhaps you are prepared to take a drop in salary in order to start up your own business.
Do your own financials. Remember you need to be paid too!
Calculate your ingoing’s and outgoings. Look at how much you are currently earning and how much your business could afford to pay you.
So what’s next?
The next stage of setting up your business is dependent on well… your business… or the type of business you are planning anyway. If you are thinking or buying and running a shop then you will need to find the correct property – thinking about your target market and the other businesses in your area. If you are running an online website you will need to find someone to design and implement your website. If you are setting up a business using eBay or Amazon then you will need to register for an account.