Fear of failure is holding me back

Discussion in 'General Business Forum' started by Digimem, Mar 5, 2018.

  1. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,576 323
    Same day delivery isn't a USP, there are plenty of couriers, men with vans, etc that any of your competitors could use to get their products delivered urgently. If they don't do it, its because there isn't the demand or they haven't realised.

    If there's no demand, then you don't have a USP, if there is a demand they can copy you in 2 or 3 phone calls.

    The same applies to stock, if you can hold all that's needed with £14k of stock, so can they. And £14k is a lot less to them.
     
    Posted: Mar 6, 2018 By: NickGrogan Member since: Nov 15, 2012
    #21
  2. Digimem

    Digimem UKBF Regular Free Member

    105 4
    Im hoping I can entice businesses who use us for the same day service into also purchase their standard stock from us (i.e stock that they don't urgently need). Im looking to to possbile having a loyalty points programme.

    How much would you say is a right amount for marketing this type of business?
     
    Posted: Mar 6, 2018 By: Digimem Member since: Apr 20, 2017
    #22
  3. Digimem

    Digimem UKBF Regular Free Member

    105 4
    Hi Mark, the suppliers will keep them in, but the print businesses themselves (I.e the customer) don't.

    It could do, thanks for the suggestion

    My competition does offer the service, but at a hefty cost. Since I'll be targeting businesses local to my city, I can do it for fraction of the cost possibly free.

    14k is my baseline, I'll be to topping up stock as soon as it sells. £14k buys me almost every line I need but at very little quantity.
     
    Posted: Mar 6, 2018 By: Digimem Member since: Apr 20, 2017
    #23
  4. Mr D

    Mr D UKBF Legend Free Member

    10,640 1,114

    The thing about doing something cheaper is that you can find out how cheap you can go.
    You take business from a competitor, they ask the business why they have stopped ordering (or competitor tracks down your pricing) and competitor decides to undercut you.
    Now where are you?
    Do you undercut them to gain the business back or do you not try and keep that customer?

    And if you can start a business doing cheaper than someone else then the same can be done to you.
    Be wary of dropping your prices too much, put them up again later and buyers may go elsewhere. Customers will easily forgive you dropping your prices, not so easy to forgive a company who raises prices.
     
    Posted: Mar 6, 2018 By: Mr D Member since: Feb 12, 2017
    #24
  5. Noah

    Noah UKBF Enthusiast Free Member

    873 206
    Advice repeated for emphasis.
     
    Posted: Mar 6, 2018 By: Noah Member since: Sep 1, 2009
    #25
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  6. Toby Willows

    Toby Willows UKBF Regular Free Member

    759 164
    Thank you. And worryingly it seems to have be ignored.

    @Digimem take a good look at the insolvency forum before proceeding if you can’t afford to lose £20k, simply because your initial £20k may well be peanuts as to what you eventually owe if it all goes pear shaped.
     
    Posted: Mar 6, 2018 By: Toby Willows Member since: Jun 20, 2016
    #26
  7. fisicx

    fisicx It's Major Clanger! Staff Member

    29,346 8,657
    Which they no doubt pass on to the customer with the emergency job. The more I read the less this seems like a viable business.

    You don’t even seem to have done any market research and to suggest deliveries will be free undermines the business. Potential clients will wonder how you can be so competitive and still make a profit.

    How much do the inks cost? Are we talking about thousands of pounds for a litre of red?
     
    Posted: Mar 7, 2018 By: fisicx Member since: Sep 12, 2006
    #27
  8. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    9,737 1,966
    You will probably need six months of no wages to start with and most new companies do not make a profit in the first year if you take a normal wage out

    You have made no mention of credit terms, many larger companies will expect 30 dat terms and then pay in about 46-60 days
    Goods delivered with invoice 1st Jan on 30 days from end of month most will pay in March invoice 31st Jan payment in March
     
    Posted: Mar 7, 2018 By: Chris Ashdown Member since: Dec 7, 2003
    #28
  9. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,576 323
    If you're doing it for free or at a low cost, that means that you are making less profit on urgent orders than normal orders, which makes no sense.

    If they charge a hefty fee, that means the clients are prepared to pay it if its really urgent, and will wait if its not. Most often they'll wait because its not actually urgent.

    If you only have a very small quantity, then you don't have a viable business. What do you when two clients order the same ink, or you get one large order?

    If you can't deliver then whats your USP?

    Selling ink is a viable business, no USP required.

    Selling ink cheaper and faster is probably a viable business, if you've got very deep pockets and can drive everyone else out of business before raising your costs to recoup the first few years losses - the current standard VC "disruptive" model. £20k wouldn't cover the first months advertising and PR.
     
    Posted: Mar 7, 2018 By: NickGrogan Member since: Nov 15, 2012
    #29
  10. Ashley_Price

    Ashley_Price UKBF Legend Full Member - Verified Business

    7,025 1,294
    Okay, this is what you said at the beginning, and I think many of us have given you good reasons to very carefully consider if you should go ahead, especially if you are so "terrified of failing".

    However, your responses appear to show that you still want to do this, and perhaps were looking for more positive replies from people?
     
    Posted: Mar 7, 2018 By: Ashley_Price Member since: Feb 9, 2008
    #30
  11. marcus_bond

    marcus_bond UKBF Newcomer Free Member

    21 7
    As others have said, don't risk all your money on something brand new, try the idea out on a shoestring, perhaps buy smaller amounts of stock, and sell at a loss to test market whether it's viable... no point in me commenting on whether it is viable as I know very little about printers. The ones we've used are slow as a wet weekend, unless they are printing digitally using something like HP Indigo, then they seem quite quick.

    However, presuming there are competitors already supplying this gear to your potential customers... don't underestimate their will to resist you, or bugger up your supply. In my experience it's bloody hard to get companies to change suppliers/start buying from you, unless you offer something they really want, which they can't get elsewhere.

    Generally I do think there is a market for same day deliveries.
     
    Posted: Mar 7, 2018 By: marcus_bond Member since: Nov 12, 2017
    #31
  12. Jessica A.

    Jessica A. UKBF Contributor Free Member

    71 51
    Everybody's terrified of failing and no one gets away from it. We know what and how it feels like and it is not the best feeling in the world... but fear of failure is just a fear of success itself. You will never know if your breakthrough will happen after your next failure. If you stopped trying after your last failed attempt, then you wouldn't achieve the success that's waiting for you at the next corner.

    Just a note, I wouldn't gamble everything that I have if I know that I wouldn't have anything else to fall back on. That would only leave you feeling worse if it did fail knowing that you might not have a roof on your head or food to eat after.
     
    Posted: Mar 7, 2018 By: Jessica A. Member since: Feb 28, 2018
    #32
  13. Digimem

    Digimem UKBF Regular Free Member

    105 4
    Im going to take the plunge with this guys. I have negotiated a cushy lease with a 3 month holiday period.

    I have a order of £7k worth of stock for the supplier (starting small with the most popular lines). Website almost complete.

    I have a list of all potential customers. I will be mailing out an introduction letter with a special opening offer price list and account opening form next week.

    Wish me luck. Any last minute tips?
     
    Posted: Sep 23, 2018 By: Digimem Member since: Apr 20, 2017
    #33
  14. marcus_bond

    marcus_bond UKBF Newcomer Free Member

    21 7
    Fixed costs will kill you quicker than a quick thing. Get out there and call on your potential customers, talk to them, question them, find out their objections to buying from you, and overcome their objections. Then change your offer based on what you learn, and use it on the next customer... keep changing and building on what works, don't just send everyone a price list.

    Unexpectedly receiving something nice and sweet with their order often reinforces good associations with your business, but don't do it all the time. You have to find a way to break the habit of them picking up the phone to order from their usual supplier, and calling you instead. Simply not having your contact details immediately to hand will often cause them to revert. Expect your competitors to come back at you, that's why just sending out price lists may not be a good idea. They often get used to beat their current supplier over the head, or just passed to them as intelligence.​
     
    Posted: Sep 23, 2018 By: marcus_bond Member since: Nov 12, 2017
    #34
  15. Digimem

    Digimem UKBF Regular Free Member

    105 4
    Thank you so much. Yes your first point is something ive already included in my marketing plan. I have about 100 potential customers on my target list. Im going to drip feed the intro letters/price lists. First im sending out to 20, see if anyone bites. If they do brilliant, but ill contact the ones who didn't and ask them what they thought and is there anything else i can do to get them to try me out.

    Regarding having details to hand, ill also be attaching a business card.
     
    Posted: Sep 23, 2018 By: Digimem Member since: Apr 20, 2017
    #35
  16. Mark T Jones

    Mark T Jones UKBF Enthusiast Free Member

    2,296 622
    Good luck!

    The phone is your second best friend. Don’t just rely on letters, pick up the phone and talk to them - lots.

    Your best friend is face to face contact, but it is time consuming.
     
    Posted: Sep 23, 2018 By: Mark T Jones Member since: Nov 4, 2015
    #36
  17. Lee Oakley

    Lee Oakley UKBF Contributor Full Member

    48 14
    Good luck with the new business.

    I have a project in the printing industry and website, seo and LinkedIn have been great for new business and we have done very very well at customer outreach from LinkedIN. If you want some hints and tips on how to use LinkedIn very effectively drop me a message and will be happy to help.
     
    Posted: Sep 23, 2018 By: Lee Oakley Member since: May 21, 2018
    #37
  18. Digimem

    Digimem UKBF Regular Free Member

    105 4
    thanks. Yes, the plan is to follow up with a phone call and try to arrange a face to face meeting. Im doing the letters first because atleast this way its not a freezing cold call.

    thanks Thats great ill shoot you a pm
     
    Posted: Sep 23, 2018 By: Digimem Member since: Apr 20, 2017
    #38
  19. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    3,514 1,127
    Fear made the wolf look bigger
     
    Posted: Sep 23, 2018 By: JEREMY HAWKE Member since: Mar 4, 2008
    #39
  20. comperio

    comperio UKBF Contributor Free Member

    33 3
    Let us conduct ourselves so that all men wish to be our friends and all fear to be our enemies.

    Alexander the Great
     
    Posted: Sep 23, 2018 By: comperio Member since: Jul 26, 2017
    #40