New business tips

  Legolas 13:28 10 Aug 2008

I have been recently made redundant and although I am looking for another job I am also considering trying my hand at selling on ebay.

Now I am not naive enough to think it is just a matter of buying some stock and selling it for a profit and watch the money roll in. But I do think that with the right approach and strategy coupled with a bit of good old luck I could grow a business.

I have never been involved with sales apart from selling a few items on ebay in the past, so what do others think and does anyone have any tips for a new wet behind the ears entrepreneur.

  wee eddie 13:45 10 Aug 2008

Chose a product that you are both familiar with and enthusiastic about.

Cost everything before you start. That includes packaging, premises (even if it is just a shed in the garden which must be large enough to store everything and kept secure), trips to the Post Office and postage, returns and suppliers.

Most of all, be prepared for both high and low turnover. No holidays (paid or otherwise)ever again, because you will loose business while you are away, which must be added to the cost of the holiday.

  Legolas 14:19 10 Aug 2008

Thanks for the advice. The problem about holidays did occur to me. I do like my holidays so I will try and find a way round it. Costing everything is I suppose a must if I am to get a true picture of my profits.

  wee eddie 14:36 10 Aug 2008

If you don't cost "absolutely everything" and factor it into the Price you charge, you will make a loss. That means "No Home"

  Legolas 15:01 10 Aug 2008

I do have some capital but I will be starting small just to get the feel for it and a bit of trial and error to see what sells and when. I have already spent the last couple of days on ebay seeing what is sellng and for how much and bought a couple of things to resell, I will see how that goes. Do you know anything about drop selling?

  wee eddie 16:08 10 Aug 2008

Of everything you buy and everything you sell. Every reel of Sellotape and your fuel costs as well.

All your costs and expenses. Otherwise, one day, "HM Revenue & Customs" will pay you a visit and make an estimate of your profit for purposes of taking it off you. Unless you can prove different ~ Their estimate is what you will have to pay.

  Legolas 16:44 10 Aug 2008

Good tip thanks. I have already started by keeping a record of the few things I have bought so far for resale, have also began looking into the tax side of things.

  wee eddie 17:22 10 Aug 2008

of your Cost of Buying.

For example: If you go to a "Car Boot Sale", keep a record of your Mileage, the Cost of Entry and any other expenses that you might incur.

Each of these items is chargeable. In other words, they reduce your Taxable Profit = Less Tax to pay.

  Legolas 17:30 10 Aug 2008

Very interesting I didn't think these things would be tax deductable, very good to know

  wee eddie 18:25 10 Aug 2008

to give yourself an income of £200 a week and then whether you could live on a Net Income of £170pw.

That, of course, may mean that you need to have Sales of about £400+ each week.

That's one of the reasons I now drive a Taxi and am not a Net Trader. The other was that I have been unable to find suitable Packaging for my Product.

I was only making 20 to 30 Postal sales when I had the Coffee House. To make a living from it I would have to increase that to 300 or 400 transactions each week.

  Legolas 18:59 10 Aug 2008

Thanks for all the very valuable info I will think seriously about the whole thing. I will see how things go and try to build a customer base if I can earn enough weekly I would consider going part time work wise, but it is all at a very early stage so far.

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