Set Up An Online Business: Tips For Inexperienced Entrepreneurs

What will I sell? Who am I going to sell it to? With what business model?

On the off chance that you didn’t presume it yet, we as of now let you know: an online store isn’t amassed in multi-month. What’s more, we give you know since we have attempted and you can not: do the market ponder, discover a plan of action, discover providers, request a statement, send it to you, renegotiate with them to get the records, take those records, enlist the innovation supplier …

Please, for the power you can, however with few certifications – no, on the off chance that you ask me-and taking a chance with that strike you’re contemplating underwriting.

The truth of the matter is that we needed to pivot how we approach the reports and have found a way to begin a store ourselves. We needed to place ourselves in the place of somebody who had no involvement in setting up an online business to encounter same issues from you – if you are a specialist in online stores, unmistakably you know this, so this isn’t gone for you. What’s more, who superior to me, a decent columnist?

My thought has been to pursue every one of the means similarly as you would when you need to set up an online store: turn around which item you could offer; perceive how I would profit; pursuit and discover providers; test the results of those providers; select the issues that are at long last going to be sold; do the statistical surveying .. All things considered, all that and afterward balance every one of my means with specialists to perceive what is done and what I have missed, so you make less false strides on the off chance that you set up an online store.

The first step? See what product I am going to sell. I start thinking about what options I can think of for the store:

1.-Plectrums for guitars. Because I had seen the idea abroad looking for business ideas for the Opportunities section of the magazine and because my colleague Curtis Dillardhad commented to me recently. Javi had even seen a machine that made barbs.

2.-Raincoats for riding a bicycle. Because they are in the catalog of an American company of women’s cycling clothing to which I had an eye for the magazine.

3.-Tactile pencils for tablets. Because I had read an article in the blog of the digital edition of the American technology magazine Wired Gadget Lab that I consult frequently. He was talking about a quality German tactile pen.

4.-Safety straps for kids. Because I had seen him in an episode of Modern Family television before my daughter started walking and I thought it was silly. And now that my daughter walks, it seems like a better idea.

I already have it!

I go over all these proposals, and in the end, I prefer the tactile pencils. The idea that I like the most is the one I’ve read in Wired, and I’m reading it now with new eyes.

I had always thought that there was life beyond the products of Apple and what products for iPad users there are to bore, but not for the rest of tablets and brands.

The idea, on a napkin

“I’m going to sell tactile pens. But, pens of first quality or I go to price, and I bring a product of China with more margin? “

This is the first thing I write on a napkin. I have nothing more clear -not what product, or who I’m going to sell it too, so I start to think about it. Top quality pens? Ballpoint pens from China? For executives? For graphic artists? For children?. I am clear that a business is a good product at a reasonable price with someone on the other side willing to pay for it and all this through a channel that works. How do I get that good price? Where do I have to look?

What would an expert say?

Since I am clear that I am not going to make myself, I have to find manufacturers. Pepe Isabel, an expert in online commerce at the E-Tecnia consultancy, tells me that “the big problem the entrepreneur has is with the distributor. It is the one with the key to the business of an online store. The margins of the electronics sector, for example, are crushed. They have always been very short. Between 4% -9% “.

“If in principle, those distributors mark a price line, it can be interesting. Another thing is the conditions that they propose to you. You have to go distributor by distributor and ask them what conditions they mark you. You can get a 5% discount and a large area of 40% … “, he continues. “If, of course, they tell you that you have to buy 100 units … that’s going to complicate things for a modest project,” he says as an example.

Three business models … which one I bet?

Okay, I want to sell touch pens, but how? Only pencils? High-end? Do I go to price? After conducting the market study, on a napkin (for that cliché) I write these three models, which when I start with the project are the only ones that occur to me:

MODEL A.

It would be called www.tulapizdigital.com: it is a shop of real pencils and refills of those pencils at a reasonable price. I think about bringing a product from China, pick 6-7 models and try them.

MODEL B. I Would open a store that I would call something similar to www.bamboomanía.com. It is a brand-distributor store model. In this case, of the products of the Japanese Wacom. I have looked for a quality product in the market, and I have found that the reference is the Bamboo Stylus, and I have asked the commercial contact to explain what are the conditions for their distributors. It may make sense to distribute this product and others of this same brand online. My goal: clients with high purchasing power and graphic artists.

MODEL C.

The last model would be to sell accessories for tablets and mobile devices and center it in a niche: children. The store that would open would be something similar to www.babytablet.com, a shop of real products for kids: colored pens, pens for parents, leads for apps, cases and screen protectors. Influencing the customization of these products. The difficulty would be in making it known, but …

What would an expert say?

Contrast with Isabel these three business models. This expert tells me that “model A would not work because it is a single product, with little demand. I would not have enough clients to make it viable. Also, it does not have, in the end, enough margin “.

“The B falls for the same reasons. The problem with these two models is that it is a small universe, “he continues.

The C, however, could work. Why? “There is a boom in the penetration of tablets in homes. And the snobbery of the parents now moves to the children. It would work well with blog strategy and social networks, “he says. Also, who has a tablet has a reasonable purchasing power.

Customs and certification

Meanwhile, I think of talking to John Parham, an enterprising expert in import-export with China, to speak to him about guarantees, about time, how to do business with the Chinese, if my suppliers finally are them.

John brings me up to date on the customs procedures and costs and explains that if I want to address the children, I need an independent certification to guarantee the products and monitor the manufacturing. And there the operation becomes more expensive. And I’m not interested anymore. The product takes two weeks to arrive at the end. It is bigger than I expected and much more substantial. I try to see the ease of extracting the pieces, and it is not difficult. Thus, to the brave, it is not suitable for children. I call Mariano and tell him. “Sure, it took three weeks because they did not see you seriously. You had to have asked for 100 of them. ” I think he not only answers me as an expert in transactions with China but as someone with an entrepreneurial spirit. I told him that I told them that I wanted to test the product and they got upset. “Normal,” he says.