Building an Online Business in Electronic and Home Goods – Seeking Guidance on Business Plans, Partnerships, and Private Labeling Strategies

[Biz1990]

I am in the process of establishing an online business in the electronic and home goods sector, inspired by successful models such as Walmart, Target, Best Buy in the US, and Currys, Argos, and AO.com in the UK. While I have a startup budget of £5000 - £10,000, I aim to emulate these businesses by strategically investing and minimizing initial costs, not to their scale but just to have a foot in the sector and see where it leads me.

My primary challenge lies in formulating a business plan that aligns with the success stories of these giants. I've noticed that they often engage in buying partnerships with manufacturers, selling products at a markup, introducing private labeling, and offering unique services. I'm keen on entering the market gradually, utilizing turnover profits to reinvest in the business. However, I'd love to know how these companies especially the newer ones like AO.com I know they became profitable eventually.

I'm perplexed about the initial steps these businesses took, especially AO.com, which deals in white goods but seemingly started without a warehouse. Did they employ sophisticated dropshipping with manufacturers? My goal is to establish an online presence, potentially utilizing an e-commerce site and an Amazon/ebay etc... stores, while implementing a marketing strategy across social platforms. I already have a strong brand, secured a short and trademarked name, and registered across domains and social media.

I am ready but struggling with a concise business plan. How can I create an online store offering private-label goods, ensuring a professional appearance with a wide product range? Additionally, I am unsure about the process of becoming an authorized seller—whether to purchase goods from manufacturers upfront or order them after a customer makes a purchase. How did companies like AO.com navigate these challenges?

An AO, Dunelm-type sort company. With the trust of other brands to list their goods online with me. If not them, then how do I go about doing my private labelling.

In essence, I'm seeking guidance on establishing a business similar to major industry players but with a focus on online operations, avoiding significant upfront investments and potential risks associated with purchasing products before sales occur. Are there established business plans or models known for creating a relatively risk-proof startup in the online sector, enabling sales without the need to stock manufacturer goods? Additionally, is there a common practice wherein manufacturers can facilitate mutually beneficial arrangements, allowing for gradual growth and providing an opportunity to build the business brand without incurring high costs for goods purchase and storage before sale?

 

[finleydesign]

You want advise on how to do a start up that emulates AO, Currys, Argos with £5 to £10k

Not wanting to pee on your fireworks, but do you want to hear the real answer?

 

[Ozzy]

How did companies like AO.com navigate these challenges?

The short answer to this question which is the basis for your other questions too, is they all stem back to investment. They have committed significant financial sums to the manufacturers to secure these terms, such as but not limited to signing a contract confirming they will spend £Xmillion with them in 12 months and promising to pay the difference if they don't.
With commitment like that the manufacturers can consider what you are asking, but with only a few grand I'm afraid you will need to reconsider your business plan and perhaps look at building up to what you want to achieve. AO didn't start out doing what they are doing now.

 

[japancool]

inspired by successful models

Can you describe what those models are?

 

[Paul Kelly ICHYB]

You're in my world now!

The dynamics of the industry have changed a bit in 20 years, however, the basis is still the same.

These retailers started off from bricks & motar retailers- they had the stock and supplier relationships and just went online.

AO started with large appliances that were generally sold for delivery by the manufacturer. This still happens for independents, but the volume comes in the bulk buying a self distribution.

OEM/private label is based on volume - manufacturers will only entertain big volumes/containers.

As mentioned, if you do not have the funds or supplier relationships, think of something else.

 

[Mark T Jones]

There are 2 ways to emulate the big boys:

1. Invest millions from day one.

2. Find a niche, work it, rinse and repeat- it will take a couple of decades, but you can potentially get investment once you've proved yourself in the first.


Out of interest, why are you thinking of a 'me too' business in a mature & highly competitive sector?

 

[Biz1990]

You want advise on how to do a start up that emulates AO, Currys, Argos with £5 to £10k

Not wanting to pee on your fireworks, but do you want to hear the real answer?

Hey mate, even if your answer is not the one i want to hear, this is business, your answer will be helpful either way my friend so please go ahead. I'm happy to hear everyone on this. I say AO because i quote the founder of AO John Roberts, who started the company with nothing.

 

[Paul Kelly ICHYB]

i quote the founder of AO John Roberts, who started the company with nothing.

In a time when online sales was still in nappies!

 

[finleydesign]

Hey mate, even if your answer is not the one i want to hear, this is business, your answer will be helpful either way my friend so please go ahead. I'm happy to hear everyone on this. I say AO because i quote the founder of AO John Roberts, who started the company with nothing.

If you have to ask for advice on how to start a business on a forum which will emulate AO.com you don't have the money, the business acumen or ability to even put a business plan together, then how do you honestly think you will make it!

Do you think there are thousands of people sitting on here, all with the ability and secret knowledge to build a multimillion pound business, but they don't want to do it themselves, they just want to give all their advise over to you to succeed with it, as everyone just can't be bothered to make millions, they just want to advise others

 

[fisicx]

And AO is in all sorts of financial trouble. So probably not a good business model to emulate.

And he may have started with nothing but he had access to funding. That’s how a business like that grows.

 

[Biz1990]

The short answer to this question which is the basis for your other questions too, is they all stem back to investment. They have committed significant financial sums to the manufacturers to secure these terms, such as but not limited to signing a contract confirming they will spend £Xmillion with them in 12 months and promising to pay the difference if they don't.
With commitment like that the manufacturers can consider what you are asking, but with only a few grand I'm afraid you will need to reconsider your business plan and perhaps look at building up to what you want to achieve. AO didn't start out doing what they are doing now.

---

Firstly, I extend my thanks to you for founding this site and taking the time to respond to my inquiries. My reference to AO stems from information I've come across online, which, although I can't verify its accuracy, appears to be from credible sources. It suggests that AO's founder, John Roberts, initially built the brand and business from scratch, possibly even on a bet. You mentioned the importance of investments, would this include backers, crowdfunding, and funding rounds. ?

Concerning my aspirations (building what I want to achieve), could you provide some examples? I could potentially allocate £40,000, considering the nature of my work. However, in the context of startups like AO, where does one draw the line, and at what financial point does a significant sum become noteworthy, especially in the early stages of a business like his? I've heard of businesses starting up with the aid of platforms like Shopify and leveraging clever marketing strategies to achieve success as small or medium-sized enterprises.

 

[Biz1990]

If you have to ask for advice on how to start a business on a forum which will emulate AO.com you don't have the money, the business acumen or ability to even put a business plan together, then how do you honestly think you will make it!

Do you think there are thousands of people sitting on here with all the ability and secret knowledge to build a multimillion pound business, but they don't want to do it themselves, they want to give all the advise over for you to succeed with it as everyone just can't be bothered to make millions, they want to advise others

I'm not asking for guidance on starting a business since I'm already running a small home business with positive turnover and some profit in its second year, alongside my main job. My goal here is to gather opinions, especially in today's e-commerce and online business scene. While I get the point about keeping knowledge to oneself, I think it's valuable to learn from others. Seeking advice is a way to increase the chances of success. Success usually involves learning from others, and that's why I'm reaching out on this forum. It's a different perspective than the idea that people don't want to make the effort themselves. I appreciate your input nonetheless.

 

[Biz1990]

And AO is in all sorts of financial trouble. So probably not a good business model to emulate.

And he may have started with nothing but he had access to funding. That’s how a business like that grows.

Got you,

Thank you @fisicx

 

[Paul Kelly ICHYB]

You could do your own website for a few hunderd pounds - that isn't the issue.

You need relationships with the suppliers (not distributors) - they get a dozen calls a day from people wanting to do the same thing.

For OEM, you will need to source in bulk - each product costing from £10k's per order.

You will need warehousing and logisitics - your £40k wouldn't even touch the cost of this.

I do wish you success, but your inexperience will not work in your favour.

 

[Ozzy]

Concerning my aspirations (building what I want to achieve), could you provide some examples?

I cannot without doing some research and it isn't anyone else's place to other than you, it would be your business so you would need to do all the research needed to satisfy yourself you have the information you need to decide whether to risk the home on it or not.

However, in the context of startups like AO, where does one draw the line, and at what financial point does a significant sum become noteworthy, especially in the early stages of a business like his?

This si something that would come out of your research in the business planning stage, which will include you speaking to manufacturers and understanding what their expectations will be. You may also want to speak to some marketing companies to get an idea on what sort of budget you would need for marketing and advertising, and they 'should' be able to give you an idea on what sort of conversions you should expect from that marketing.

This all feeds into the business plan, and then potentially from a strong business plan you could get some investors on board. However, as you will have an untested business with no income expect to give away a lot of equity at this stage.
Alternatively, start small and build up from there testing the model and then go for investment later when you've proven the model. Then you won't have to give up as much equity.

 

[finleydesign]

I'm not asking for guidance on starting a business since I'm already running a small home business with positive turnover and some profit in its second year, alongside my main job. My goal here is to gather opinions, especially in today's e-commerce and online business scene. While I get the point about keeping knowledge to oneself, I think it's valuable to learn from others. Seeking advice is a way to increase the chances of success. Success usually involves learning from others, and that's why I'm reaching out on this forum. It's a different perspective than the idea that people don't want to make the effort themselves. I appreciate your input nonetheless.

Thats kind of going full circle, you've been inspired by walmart, target and have £5-£10k to invest and want to emulate ao.com

The point that you don't have the knowledge or first clue is your first red flag, why would anyone on here have the knowledge of turning your £5-£10k into a new ao.com that wouldn't do it themselves!

If you can't put a business plan together, thats your first answer and second red flag, you are way out of your depth

If you are running a profitable business already, invest in that, stick with what you know

 

[Biz1990]

Thats kind of going full circle, you've been inspired by walmart, target and have £5-£10k to invest and want to emulate ao.com

The point that you don't have the knowledge or first clue is your first red flag, why would anyone on here have the knowledge of turning your £5-£10k into a new ao.com that wouldn't do it themselves!

If you can't put a business plan together, thats your first answer and second red flag, you are way out of your depth

If you are running a profitable business already, invest in that, stick with what you know

Thanks mate, but don't assume I lack understanding; you don't know me or my business acumen intentions for this business venture or my current successful businesses.

Your responses seem more about putting off than offering constructive advice. Many successful businesses started with a similar investment, focusing on selling their own patented/unpatented products and later expanding through partnerships. One of which I own here in the UK and doing very well with partners fischers UK.

Your dismissal of someone exploring in-depth questions can actually aid their business research and planning. Your response, though discouraging, fuels determination for people like me who thrive on challenges. I prefer optimism over doubt; even if one doesn't fully know a field initially, learning is always possible, as demonstrated by successful business owners.

The ideas of a business plans stems from research to begin with for instances like my questions into industry challenges, concepts etc… the fact that my question was brief gave you meaning of ignorance to respond the way you have without knowing me. So please if your going to respond, do like the others mate and let’s all help rather than discouraging. Whilst your logic an argument may be valid, your approach is not constructive nor helpful.

Thanks

Oh and just to add my current businesses I didn’t know the field entirely but succeeded in them successfully on the topic of “sticking to what you know”

 

[finleydesign]

Thanks mate, but don't assume I lack understanding; you don't know me or my business acumen intentions for this business venture or my current successful businesses.

Your responses seem more about putting off than offering constructive advice. Many successful businesses started with a similar investment, focusing on selling their own patented/unpatented products and later expanding through partnerships. One of which I own here in the UK and doing very well with partners fischers UK.

Your dismissal of someone exploring in-depth questions can actually aid their business research and planning. Your response, though discouraging, fuels determination for people like me who thrive on challenges. I prefer optimism over doubt; even if one doesn't fully know a field initially, learning is always possible, as demonstrated by successful business owners.

The ideas of a business plans stems from research to begin with for instances like my questions into industry challenges, concepts etc… the fact that my question was brief gave you meaning of ignorance to respond the way you have without knowing me. So please if your going to respond, do like the others mate and let’s all help rather than discouraging. Whilst your logic an argument may be valid, your approach is not constructive nor helpful.

Thanks

Ok go for it, you sound like you have it all sorted, not sure why you even posted then, but go for it, you will make a huge success of this, if you went to your bank, i'd assume they would also invest a lot of money with you as it's an almost guaranteed return.

My advise would be to ignore people like me or anyone trying to open your eyes, maintain the illusion you have the ability to turn this £5-£10k into a multimillion pound company from the advise on this forum, i'll duck out, as I clearly am not saying the fluffy words you need.

 

[BusterBloodvessel]

In a time when online sales was still in nappies!

Exactly. It was started following a bet in a pub about a quarter of a mile from where I'm currently sat, in 2000. The discussion was all around "this online malarkey will never take off" - e-commerce was in its infancy, Amazon at the time might only have been 3 or 4 years old. John Roberts was convinced the future was online whereas others in the pub were not.

If the local story is to be believed, he had just bought himself a new washing machine and in this ensuing debate/argument, bet his mates a quid that he could sell it on online and make a profit. And thus, AO was born!

The world is a very different place than it was almost 25 years ago!

 

[fisicx]

The world is a very different place than it was almost 25 years ago!

Yes it is. And to start any sort of similar venture these days is going to need a bucket load of cash. The days of 'build it and they will come' are long gone. There is still plenty of money to be made online for a small investment, but to consider anything that will compete with any of the established national and international players without a huge investment isn't going to work.

I'm working with a Norwegian company building a comparison website. Their startup marketing budget is over a million pounds.

 

[japancool]

Televisions that identify as dishwasers will be the next big thing.

 

[Biz1990]

Ok go for it, you sound like you have it all sorted, not sure why you even posted then, but go for it, you will make a huge success of this, if you went to your bank, i'd assume they would also invest a lot of money with you as it's an almost guaranteed return.

My advise would be to ignore people like me or anyone trying to open your eyes, maintain the illusion you have the ability to turn this £5-£10k into a multimillion pound company from the advise on this forum, i'll duck out, as I clearly am not saying the fluffy words you need.

Mate, no one's disputing your comment about a multimillion-pound company and its 5-10k aspect. Most likely, you're correct. However, your response comes off as sarcastic. While it's truthful to some extent, it isn't exactly helpful. What have you achieved by responding like that? Other people here are providing constructive input and advice. Your approach seems more like a natured insult without any intention to help or advise. It's not about using fluffy words, but everyone else has given their reasons fairly. I've learned a lot from their responses and hope to continue the conversation with them about my ideas. Unfortunately, your responses just seem to shut down every avenue for conversation. Thanks anyway.

 

[Biz1990]

Yes it is. And to start any sort of similar venture these days is going to need a bucket load of cash. The days of 'build it and they will come' are long gone. There is still plenty of money to be made online for a small investment, but to consider anything that will compete with any of the established national and international players without a huge investment isn't going to work.

I'm working with a Norwegian company building a comparison website. Their startup marketing budget is over a million pounds.

I agree with you. If someone creates a unique USP business model that's gaining traction, one of the big players might either buy them out or acquire them. I'm just pondering, considering the scenario where a person is creating within the context of having startup cash, not needing to be significant, is there any way to embark on that kind of journey? I totally agree on the bucket load of cash but what if there was a catch that would benefit businesses something Unique. This i guess is a secret one that anyone could suggest couldnt be showcased here haha. But yeah agree with you mate @fisicx

 

[Biz1990]

Exactly. It was started following a bet in a pub about a quarter of a mile from where I'm currently sat, in 2000. The discussion was all around "this online malarkey will never take off" - e-commerce was in its infancy, Amazon at the time might only have been 3 or 4 years old. John Roberts was convinced the future was online whereas others in the pub were not.

If the local story is to be believed, he had just bought himself a new washing machine and in this ensuing debate/argument, bet his mates a quid that he could sell it on online and make a profit. And thus, AO was born!

I understand your point, mate. It's true; the world and e-commerce have undergone significant changes. It does make you wonder if there's still room for someone new in the market. If there is, what services and new initiatives could be introduced to accommodate both new business partners (manufacturers) and become a player in the field? Anyone can create their own products, avoiding saturation by developing unique designs to grow. However, I'm curious if there's something the market hasn't latched onto yet that could drive an incentive for manufacturers to say "Yeah we could work with this company" a new business model but start-up cost as high as anticipated. Starting small and eventually succeeding in the sector, even if it means selling the business, would be a success in itself for any founder, especially if it's profitable.

 

[Biz1990]

I cannot without doing some research and it isn't anyone else's place to other than you, it would be your business so you would need to do all the research needed to satisfy yourself you have the information you need to decide whether to risk the home on it or not.

This si something that would come out of your research in the business planning stage, which will include you speaking to manufacturers and understanding what their expectations will be. You may also want to speak to some marketing companies to get an idea on what sort of budget you would need for marketing and advertising, and they 'should' be able to give you an idea on what sort of conversions you should expect from that marketing.

This all feeds into the business plan, and then potentially from a strong business plan you could get some investors on board. However, as you will have an untested business with no income expect to give away a lot of equity at this stage.
Alternatively, start small and build up from there testing the model and then go for investment later when you've proven the model. Then you won't have to give up as much equity.

I completely agree with you, @Ozzy . I have a business model in mind that I believe would be mutually beneficial for manufacturers, customers, and my company. Having a budget in mind, or at least using this information as you've articulated, will help me understand the financial requirements, especially for marketing and advertising. Depending on my outreach to manufacturers and understanding their expectations, as you've rightly pointed out, I'll have more clarity to incorporate into my business planning. At that stage, I'll be better informed to decide the course of action. Given the current startup landscape, the idea to start small, test the market products, and if successful, build upon the proven model is a wise move, which i initially did think about. What are your thoughts on that? And thanks again for your insightful responses.

 

[Biz1990]

You could do your own website for a few hunderd pounds - that isn't the issue.

You need relationships with the suppliers (not distributors) - they get a dozen calls a day from people wanting to do the same thing.

For OEM, you will need to source in bulk - each product costing from £10k's per order.

You will need warehousing and logisitics - your £40k wouldn't even touch the cost of this.

I do wish you success, but your inexperience will not work in your favour.

Thanks @Paul Kelly ICHYB for sharing your insights. I appreciate your candid feedback and the reality check on the challenges that may lie ahead. It's evident that establishing strong supplier relationships and managing logistics are critical components of success in this venture.

Considering the dynamics you've highlighted, I'm keen on exploring innovative approaches to address these challenges. While bulk ordering for OEM/private label may be daunting initially, are there any recent initiatives or trends in the industry that could potentially reshape the way manufacturers and online businesses collaborate? I'm curious if there are emerging models that could benefit both parties involved.

Especially for new smaller businesses that want to venture out in this sector, i wonder if this is worth a contact to the manufacturers as pointed out by yourself, ozzy and others.

Furthermore, do you think introducing a unique selling point or system, perhaps a specialised online platform or a targeted marketing strategy, could create a win-win situation for manufacturers, customers, and my company id like to start? I'm interested in exploring avenues that not only mitigate the risks associated with significant/low upfront investments but also bring value to all involved to create incentives to work together. Question is, what could that be !?

Your comments are great, and any additional thoughts or suggestions on navigating the challenges with a fresh perspective would be greatly appreciated thank you so much. I'm determined to learn and adapt, and your comments/advice is instrumental in shaping a more informed and strategic approach.

Thank you once again for your time and insights. Looking forward to hearing more from you

 

[Mark James]

Hi Biz

I like your thinking and this is after all a business forum so I get it that your asking for advice, but your asking asking asking using question marks after every question then fully praising anyone who replies. It’s like your demanding answers/solutions and it’s pretty see through tbh.

This is such a common theme on here where people come on asking for advice for a idea they have and when they get the reality shown to them they can’t/won’t accept it and only want to hear what they want to hear and when they do start to realise the hard cold facts rather than accepting them they will then go down the route of ‘you could have worded things better or your not encouraging or I don’t like the way your speaking to me’ all classic basic psychology.

Finley has given you the best advice you’ll ever receive.. give it up, it’s a non starter.

You got no money to invest.
You got no ideas.

It’s basically like me saying I want to start a football team from scratch and get it to the premier league in 5 years, I’ve got £8k to start and know I can do it but has anyone got any ideas how I do it exactly? Well? Come on? I need ideas, anyone ?

O and calling everyone ‘mate’ does not endear you to anyone.

 

[Mark T Jones]

I'll admit to skimming over a lot of this - too many platitudes and generic waffle.

As comes up here ad-nausiem, the gap between success and failure doesn't lie in the idea, but in the execution- starting with where/how you target yourself.

Simply grabbing a ten year old idea and hoping to succeed is a recipe for failure.

In a nutshell - what value are you adding?

 

[BusterBloodvessel]

I completely agree with you, @Ozzy . I have a business model in mind that I believe would be mutually beneficial for manufacturers, customers, and my company.

So - what's this revolutionary business model in mind?

it's all well and good talking about "emerging models", "unique selling points or systems", "specialised online platform".... except unless YOU have this knowledge, it seems like a non-starter. You're wandering into an industry that you know nothing about and trying to work out how you can improve it. Does it need improving?

Many businesses are started from people working in that field and thinking "I can do this better/more cheaply/more quickly". They identify the pain points because they experience them. They don't ask an internet forum how they could possibly make better an industry that they don't know about.

 

[Biz1990]

Hi Biz

I like your thinking and this is after all a business forum so I get it that your asking for advice, but your asking asking asking using question marks after every question then fully praising anyone who replies. It’s like your demanding answers/solutions and it’s pretty see through tbh.

This is such a common theme on here where people come on asking for advice for a idea they have and when they get the reality shown to them they can’t/won’t accept it and only want to hear what they want to hear and when they do start to realise the hard cold facts rather than accepting them they will then go down the route of ‘you could have worded things better or your not encouraging or I don’t like the way your speaking to me’ all classic basic psychology.

Finley has given you the best advice you’ll ever receive.. give it up, it’s a non starter.

You got no money to invest.
You got no ideas.

It’s basically like me saying I want to start a football team from scratch and get it to the premier league in 5 years, I’ve got £8k to start and know I can do it but has anyone got any ideas how I do it exactly? Well? Come on? I need ideas, anyone ?

O and calling everyone ‘mate’ does not endear you to anyone.

First off, mate,

That's just how I talk and connect with people. It might not be your cup of tea, but it's not meant to rub anyone the wrong way; rather, it's a way to acknowledge their response. Secondly, this isn't some medical or psychological evaluation platform for those dropping in with questions. We get all kinds here, even those who are clueless about business. This forum was created to assist people seeking advice.

You shouldn't question a person's financial commitments of investment or ideas without knowing them entirely.

Your approach seems just as bad, if not worse, than Finley's. If we're delving into psychology, let's start with how you began your response with, "I like your thinking, and this is a business forum, so I get that you're asking for advice." From there, it goes downhill. A bit of coercive behavior, don't you think? Or is that just "classic basic psychology" for you, as you kindly put it?

We can all play your game, mate, but this isn't the space for it. Dismissing someone for asking questions and questioning their ability to face hard facts, while I suggest to one person to phrase responses more kindly and business-focused to help them think better, is not a bad thing. The forum isn't made for outright sarcasm. Yeah, it's for reality checks and opinions, but shooting down someone without understanding their business background is just baffling.

You claim this is a common theme, well, wake up, mate. This is a forum, and questions are meant to be asked. Realities can be accepted, as demonstrated by the people who responded to my thread. So your comment about me not accepting reality is baffling. @Ozzy @Mark T Jones @fisicx @BusterBloodvessel @Paul Kelly ICHYB all provided insightful information that I've taken on board, such as contacting manufacturers, starting small and scaling, building stock supplier relationships, finding a niche, repeating success, and looking into future investments.

The point is, anyone on this forum is welcome to ask questions, especially if they're fair and not bizarre. Starting a football club, just common sense, would cost a lot more than £8000. But optimistically, it could range into the millions because of team/staff costs, stadium build costs, running costs, league entry fees, contingency funds, etc. I'm just giving you a ballpark figure here. Who's to say you're not a millionaire with those funds? I'd just wish you the best on your journey and recommend creating a comprehensive business plan. I wouldn't shoot your question down. You never know who you could mee in such forums or settings, having like-minded successful business people could pave the way for greater opportunities.

Without forums like this and helpful people, you wouldn't know how one comment could trigger an idea or perspective in someone's head. Multiple heads and opinions are better than one, mate, and optimism isn't a bad thing. Without my optimism and drive, I wouldn't have come far in my profitable businesses. Characters like you shouldn't be shooting people down, no matter how crazy you think their questions may be. It doesn't hurt to help a person, mate, or to be a bit better at giving constructive advice. A side note: comparing creating a football club to a small online retailer selling niche or patented products with margin costs ranging from £1-£4, depending on the product, is not fair. Two entirely different entities, mate. Online business offers more diversity and openness, the field is more open to play with than creating a football club. Excuse the pun, and thanks for your advice, mate!

 

[Biz1990]

So - what's this revolutionary business model in mind?

it's all well and good talking about "emerging models", "unique selling points or systems", "specialised online platform".... except unless YOU have this knowledge, it seems like a non-starter. You're wandering into an industry that you know nothing about and trying to work out how you can improve it. Does it need improving?

Many businesses are started from people working in that field and thinking "I can do this better/more cheaply/more quickly". They identify the pain points because they experience them. They don't ask an internet forum how they could possibly make better an industry that they don't know about.

Thanks @BusterBloodvessel so it borders on the lines of win-win solutions on some of their products (purposely being brief here) in addition to connections i have in the dropshipping warehouse industry in the UK. Proposing benefits for the business free up space, propose marketing measures for goods of thiers unsold generating additional revenue with my contacts, and avoiding potential losses on inventory, in addition to plenty more things. Idea would be to negotiate terms and draft up a unique case study giving a comparison into what i do in my own business and how that is successful. Go from there, if that doesn't work, then you have to try in life otherwise you won't know. This would be my third business venture. One of which i sold, second business i own successful patents used and license by fischer and other international brands for a couple of designed products and tools (in brief).

Nothing is quick, never said that. Just merely asking some questions thats all. Thanks for your response and help

 

[Biz1990]

I'll admit to skimming over a lot of this - too many platitudes and generic waffle.

As comes up here ad-nausiem, the gap between success and failure doesn't lie in the idea, but in the execution- starting with where/how you target yourself.

Simply grabbing a ten year old idea and hoping to succeed is a recipe for failure.

In a nutshell - what value are you adding?

Thanks @Mark T Jones I didn't see your previous response, I do find the idea of finding a niche to gain potential investment a successful approach as i have personally experienced this myself. On the topic of why get into this sector, i find it fascinating with the reach of advancement in technology, and increased internet shopping, working along my own patented product and seeing what the internet did for that. I would add value to the USP i have a few in mind, especially concerning unique product selections that may not be readily available elsewhere, and of course creating that flexible and convenient shopping Experience (obviously) Key is to the use of social brand awareness and visibility with the use of social media. You dont master that these days then i believe any person is limiting thier growth potential. The market is so saturated for like-for-like ideas yet with good social brand awareness small companies are turning over pretty well to make a nice living. Doesn't have to be mega scale but hey any extra income helps in this current climate.

 

[BusterBloodvessel]

Lots of buzzwords. Still no substance.

 

[Biz1990]

Lots of buzzwords. Still no substance.

Thank you for your input. I never knew conversations between users showcased no substance, i guess you want the secrecy that you've previously stated "People don't just give out their business plans" true that, however, having in-depth conversations about such things can benefit anyone to think innovatively. Never thought starting a thread here would be such a prevalent issue to initiate a productive exchange of ideas and positive engagement between users.

On the topic of your previous comment concerning experience: not all businesses are started by individuals with direct industry experience. Some entrepreneurs venture into entirely new fields, bringing fresh perspectives and innovative solutions.

Many examples of them are some of the biggest players in the game ventured into fields they are not familiar with, and I'm sure users here have also done the same, me being one of them successfully.

Thanks for your input however, been insightful.

 

[Chris Ashdown]

Do you have a track record as a MD that would interest the financial market as they would be investing in you not just the company, build your small company into something getting on for £1 million turnover and great profit and you would maybe just listened to

Business plan to show how it works, what your marketing budget is likely to cost, how you are better than the competitors, your USP, Plan and show the details

Your example AO does not need its own equipment or labels it sells famous makes of machines that spend millions themselves making a brand that's well known

Amazon would have been a better example getting investors to take a very long view without profit so that all profit was invested in growth

 

[Biz1990]

Do you have a track record as a MD that would interest the financial market as they would be investing in you not just the company, build your small company into something getting on for £1 million turnover and great profit and you would maybe just listened to

Business plan to show how it works, what your marketing budget is likely to cost, how you are better than the competitors, your USP, Plan and show the details

Your example AO does not need its own equipment or labels it sells famous makes of machines that spend millions themselves making a brand that's well known

Amazon would have been a better example getting investors to take a very long view without profit so that all profit was invested in growth

Thanks, Chris, I appreciate your response, you are right in terms of everything that you have said. Part of this would be interested in the MD not just the company along with the turnover/profit soon providing a clear comprehensive business plan. You're 100% right in what you say for sure.

On the AO comment, I guess given that AO started in the early ages of the internet provided platform interest to those brands and visionary that sought other brands to partner with them. Just always makes you wonder though, without the high capital initially, amazing to see how far companies like, Ocado in the early days of net start.

It just gets you thinking about new possible innovations on how someone else could get into this field, just like how they once did without the high initial capital in the early 2000s.

Thanks so much for your comments and advice brilliant.

 

[BusterBloodvessel]

Thank you for your input. I never knew conversations between users showcased no substance, i guess you want the secrecy that you've previously stated "People don't just give out their business plans" true that, however, having in-depth conversations about such things can benefit anyone to think innovatively.

Pretty much my point though - there isn't any in depth conversation here. There isn't "I think if white goods were sold this way...." / "What about approaching the market from x perspective" / "what about an innovative way of arranging finance"..... there's nothing except basically wanting make a multi-million pound business from nothing, because someone else did it years ago, all surrounded by "blue sky thinking" type waffle that's all too prevalent on LinkedIn.

OK, ok. Lets try another tack. I appreciate you don't want to give away your secret ideas of what you plan to do. So instead of telling me what you plan to do, tell me WHY?

Any specific example, just one will do. What area can be done better, and why? For example, you mentioned "avoiding losses on inventory". So, why do you need to propose a solution for this? Let's not even get into the how you will do it, but just the why? What problem do white goods manufacturers have today with losses on inventory?

 

[Biz1990]

Pretty much my point though - there isn't any in depth conversation here. There isn't "I think if white goods were sold this way...." / "What about approaching the market from x perspective" / "what about an innovative way of arranging finance"..... there's nothing except basically wanting make a multi-million pound business from nothing, because someone else did it years ago, all surrounded by "blue sky thinking" type waffle that's all too prevalent on LinkedIn.

OK, ok. Lets try another tack. I appreciate you don't want to give away your secret ideas of what you plan to do. So instead of telling me what you plan to do, tell me WHY?

Any specific example, just one will do. What area can be done better, and why? For example, you mentioned "avoiding losses on inventory". So, why do you need to propose a solution for this? Let's not even get into the how you will do it, but just the why? What problem do white goods manufacturers have today with losses on inventory?

The "why" here is tied to the dynamic nature of consumer preferences and the fast-paced evolution of technology. Manufacturers need to constantly innovate to stay competitive, but this creates a potential dilemma of having obsolete inventory on hand. Proposing a solution to this challenge becomes crucial for both manufacturers and retailers entering the market. Classic example was with Sony and Samsung phones etc... its a known issue. Though, this is just to answer your question. It does not prove your point but merely answers one of your questions with all due respect. Going out of context. The arranging finance element is part of services offered in thier innovative way from any new retailer to compete with others, this is part of most retail businesses a great example is Costcos, success to finances and memberships, i dont have to point out the obvious to you. Whos saying someone is going to make a multi-million pound business from nothing ? no one said that and thats naive.

Another answer to your question as to the problems and :

Well plenty customers may still be willing to purchase previous models, the broader consumer market tends to be more attracted to the latest features and technological advancements. As technology evolves, there is often a perception that newer models offer improved performance, energy efficiency, or additional functionalities. though, with current financial climate customers dont mind a great bargain too for a previous model.

This consumer preference for the latest models can result in decreased demand for older versions. As a result, manufacturers find themselves with surplus inventory of previous models that may not align with current market trends. This is why introducing such innovation and clever marketing through wholesalers, and brands could pave the way for a new kind of store. Of course, you cannot do any of this without proving yourself first, which could just mean starting an entity in a niche building your brand up profitable and eventually go into that retail sector if still possible.

 

[BusterBloodvessel]

Excuse me a moment whilst I go and bang my head against a brick wall.

The "why" here is tied to the dynamic nature of consumer preferences and the fast-paced evolution of technology. Manufacturers need to constantly innovate to stay competitive, but this creates a potential dilemma of having obsolete inventory on hand. Proposing a solution to this challenge becomes crucial for both manufacturers and retailers entering the market. Classic example was with Sony and Samsung phones etc... its a known issue. Though, this is just to answer your question. It does not prove your point but merely answers one of your questions with all due respect.

With all due respect, that doesn't answer my question. I have asked specifically What problem do white goods manufacturers have today with losses on inventory?. Not about Sony or Samsung or mobile phones, nor about generalised statements regarding consumer preferences and evolution of technology. We're talking about white lumps here that keep food cold or spin some laundry round.

So, in the specific industry that you're looking to enter (white goods) what is the actual issue, and scale/size of such issue, around losses on inventory?

 

[Shopclicks]

@Biz1990 You really do overthink your responses. You need to stop talking about big business and focus on small businesses making an impact. Talking about major brands makes you seem naive.

This consumer preference for the latest models can result in decreased demand for older versions. As a result, manufacturers find themselves with surplus inventory of previous models that may not align with current market trends. This is why introducing such innovation and clever marketing through wholesalers, and brands could pave the way for a new kind of store. Of course, you cannot do any of this without proving yourself first, which could just mean starting an entity in a niche building your brand up profitable and eventually go into that retail sector if still possible.

One of my clients does exactly this and makes a very good living from it. He has exclusive access to surplus and runout stock from the biggest UK distributor in a particular product sector. Distributors will often offer massive discounts to clear stock. Recent additions to their surplus stock file will range in discount between 70% - 50% of their cost. The longer stock sits, the cheaper it gets. Some lines are sold as low as 10% of their cost. And this is the key. Buy at the right price and you can sell anything.
Multi-channel selling has worked for him. Website, eBay and Amazon. He sells B2B at much better bulk pricing than his B2C pricing. The only advertising he does is email shots to his B2B retailers as new stock becomes available.
And the icing on the cake .... It's all dropshipped.

What you end up doing may not be this business model but the principle will be the same. Buy at the right price. Some people do that by throwing money into bulk purchasing and some people talk their way into an opportunity. Stop think about how the big players made created their brand and their buying power. You need to solve a problem for someone.