Business Funding, What do you think?

[JKerry]

Okay so im looking for some funding for my new business here is a quick incite into my new business.

Okay so im opening an import/export business and the first product I am importing is paper, im importing a 20ft container (8000 reems).

I have been researching into it alot the past month or so and have found a supplier and received a quotation.

My Cost And Profit Expected.

Quotation: £3994.20 CIF Price for 20ft Container with 8000 Reems of paper.
Including VAT (20%) = £4793.04 Inc VAT
Inc Duty (0% on paper) - £4793.04

£4793 / 8000 = £0.599/pcs

I searched the top 5 paper companys and websites (Staples, Viking, C2uoffice, Euro office and Ukoffice direct and they all ranged from £1.97 ex Vat at the lowest price to £2.84 Ex Vat. They are the prices for the cheapest office paper each company have.

If I was to sell myn at £1.50 each ex Vat, and £1.80 each Inc VAT i would be on average £0.97 cheaper than the top 5 sellers.

Profit:

Buy for £0.60 (inc VAT)
Sell for £1.80 (inc Vat)

= £1.20 Profit Per Reem

£1.20 x 8000 = £9600 Profit on a £5000 (Inc Expences) Deal.

Do you think this is a good idea or not? i could also wholesale them at £1.10 Each Inc Vat

Buy: £0.60 (Inc Vat)
Sell: £1.10 (Inv Vat)
= £0.50 Profit

£0.50 x 8000 = £4000 Profit

Few Questions:

Do you think this is a good idea?

Would anyone here buy it at wholesale prices of £1.10? Per Reem (could go cheaper)?

How much would you say a £4000 Investment would be worth (% Wise) or would it just be better to get a loan?

Thank you.

.......................................................

 

[Homer J Simpson]

A few thoughts.....

Where would you store it?
How would you market/sell them? (online, locally etc)
How would take payments? (credit card, cheque etc)
What would it cost to process the payments?
Would you deliver? If so, how much would it cost?
Is it decent quality paper? What GSM? (I've managed to buy HP paper cheaper than tesco value before when it was on offer, wouldn't buy cheap paper again).

 

[mrchips]

What about Customs clearance charges, container unloading, storage, advertising, distribution, cost of finance...?

Have you had samples?

Mr Chips

 

[businessfunding]

I generally suggest that investors aren't interested in stealing ideas, but i this case you are adding nothing over what they could do themeslves, so why would they invest in you?

A I said before, keep having ideas but think them through fully before the money stage.