Startup affected by COVID-19

[A4Hiwayman]

Advice needed for startup affected by COVID-19

Hello, I appreciate that there must be many in my situation and would like to hear any and all practical advice.

I took out a personal business loan and invested a lump sum from my pension pot in order to launch my new business in February/March 2020.
The original plan was to open a small store and e-commerce website using my 30 years experience.
Unfortunately, the original plan to open the store was put on hold because of the lockdown introduced during that time.
For the last 12 months I have struggle to build the business online with sales being low as a result of advertising restrictions and all the suppliers and manufactures selling online B2C.
As a result, apart from the original investment in stock, I have had to use the remaining funds to live on and cover the bills.
Unfortunately the money has dried up and I'm currently receiving UC which is barely enough to survive on.
It appears that because I have no accounts and received no wages whilst self-employed and no bricks and mortar premises that I don't qualify for and grants or support loans.
I am desperately job searching but finding it extremely difficult to even get and interview.

Has anyone been in a similar position and found a way out of it?
Any advice appreciated.

 

[Mark T Jones]

Online sales has been one area that has boomed through lockdown - so the obvious answer is to find one of those areas that is doing well.

I don't know anything about the vape business (other than the constant threat of legislation) but others on here might be able to give you pointers.

Unfortunately the assistance available is based on earnings lost relative to previous years, so you can't qualify.

 

[WaveJumper]

These are very difficult times and of no help to you, but I think personally there are so many people in your position the stories we do see in the press at the moment only scratch the surface. The whole vaping business does seem a very difficult area to be in, when events were running (back in the day) I used to help my son out on many a weekend and there was always a vaping stand at one show or another and they always seem to draw a crowd so maybe something to think about for the future especially if you still have a lot of stock.

Others I know and this includes two pilots have all found work as delivery drivers to tide them over as companies certainly down south here are crying out for people I wish you all the best and hope things turn around for you

 

[mattk]

As @Mark T Jones says, now is the perfect time to have an e-commerce site and not be saddled with a physical shop.

What is your marketing strategy? You've got one follower on Twitter and haven't tweeted since last April. You've got 25 followers on Instagram and haven't posted in a similar time frame.

How are you planning on people finding out about your site?

 

[AllUpHere]

There have been a lot of start ups blaming covid when actually they were going to fail anyway. How has Covid stopped your online business taking off?

 

[fisicx]

For the last 12 months I have struggle to build the business online with sales being low as a result of advertising restrictions and all the suppliers and manufactures selling online B2C.

That has nothing to do with Covid.

Many have seen vaping as an easy route to market when in fact it's very difficult to get a foot in the door. As others have said, ecommerce has been booming - if you have the right products.

PS: it's not helped by you having a not very good website.

 

[japancool]

Isn't everyone and their dog selling vaping products?

Seems a saturated marketplace.

 

[Mr D]

Isn't everyone and their dog selling vaping products?

Seems a saturated marketplace.

Happens with every product type people see as booming. Go from one shop selling vape stuff to dozens - and all competing for the same customers.
And a lot being left with a chunk of stock they cannot shift very easily.

Seen it happen multiple times.

Now e-commerce is booming - so a different product is needed. And go where the buyers are if your site is not up to snuff. Not looked at it.

 

[A4Hiwayman]

As @Mark T Jones says, now is the perfect time to have an e-commerce site and not be saddled with a physical shop.

What is your marketing strategy? You've got one follower on Twitter and haven't tweeted since last April. You've got 25 followers on Instagram and haven't posted in a similar time frame.

How are you planning on people finding out about your site?

I have been concentrating on FB and Pintrest. You're right though, I should make the most of the other platforms like twitter and Instagram.

 

[fisicx]

I have been concentrating on FB and Pintrest. You're right though, I should make the most of the other platforms like twitter and Instagram.

No, people wanting your products won’t be using these platforms.

The is almost nothing you can do to market your products cheaply.

You have a cut price website with zero wow factor. You are selling products you can get all over the place. You have no USP and offer no benefit to consumers.

Sorry to say but your best bet is to find someone to buy your stock and find something else to sell.

 

[mattk]

I have been concentrating on FB and Pintrest. You're right though, I should make the most of the other platforms like twitter and Instagram.

You only have nine followers on Facebook and four on Pinterest though?

 

[MBE2017]

Joint Director and co-founder therockjunction.com Website not working?

As for your new venture, it’s been stated already, standard shop, products, what was your original marketing plan? I doubt you can be happy with approx 10/30 people following you on various sites, most schoolkids would do more in an afternoon.

Sorry if this is brutal, but I don’t see the hard graft having been put in. Get on a local market, you should have 50/100 clients after 1 to 2 days, build it from there if you think you can make it work, but now your money has gone, it will be much harder.

As for income, take part time or full time work, if you want it you are going to have to work for it I’m afraid.

 

[intheTRADE]

Sorry to sound blunt but you posted an almost exact same situation back in March 2019 then were winding the business up in November 2019 with similar reasons: Unforseen circumstances, invested money from pension pots etc, and this was pre-covid

You said in one of those posts you had years of experience running other peoples e-commerce stores, which may be true, but have you any experience of actually running a business? They are completely different. Ploughing money TWICE into shed loads of stock would suggest not.

As for this vaping business you are on a very difficult road I am afraid. I vape and whilst you have some nice stuff on your website, your prices are already higher than established places selling the same stuff.

I use the Aspire Pockex and would consider myself a no frills vaper who started to help me stop smoking. I cannot be bothered with replacement coils, replacement glass etc so I just buy a new one every 6 months for £20 from Amazon and its with me the next day. You are listing it for £25 plus delivery.

In terms of the e-liquids, forget one off sales. I use 4-5 liquids a month and buy them in bulk for a quid each at poundland. Your cheapest is £2.50. You could try moving to subscription based like many other industries have and market it as such 'Never run out of E-Liquid again with monthly deliveries'

As for getting a job unless you don't drive or live in the sticks you should have no problems getting delivery driver work. Amazon, Uber Eats, Deliveroo and Asda are crying out for drivers Nationwide

 

[Interestedobserver]

Why have you waited until now to do anything about it?

What exactly have you been doing for the last 12 months each day to stop your money running out?

Please tell me you havent just wasted the last year doing nothing?

What ways have you tried to make an alternative income that have failed?

You talk above like you've only just found out you don't qualify for any support?

You will have known that throughout this time?

So why wait til now to ask the question?

 

[NickGrogan]

Covid was already around in March 2020, so I'm not sure how you were unaware of it.

Ignoring Covid, what was your actual marketing plan?

 

[fisicx]

Ignoring Covid, what was your actual marketing plan?

Appears to have been promote on Facebook. A plan doomed to failure from the start.

 

[Mark T Jones]

, I should make the most of the other platforms like twitter and Instagram.

That, in a nutshell is your problem.

You have absolutely no comprehension of marketing. And your business is all about marketing.

 

[Interestedobserver]

Covid was already around in March 2020, so I'm not sure how you were unaware of it.

Ignoring Covid, what was your actual marketing plan?

I'm sure there's lots in the same boat. I know a few who either are unable or unwilling to adapt and just wait and wait and see their money disappear slowly but surely and then complain when it's gone

It's hard to fathom for me

I can sympathise with people who try other stuff and fail for sure. But doing virtually nothing different for 12 months?

 

[Mr D]

I'm sure there's lots in the same boat. I know a few who either are unable or unwilling to adapt and just wait and wait and see their money disappear slowly but surely and then complain when it's gone

It's hard to fathom for me

I can sympathise with people who try other stuff and fail for sure. But doing virtually nothing different for 12 months?

One definition of stupidity is doing the same thing again and again - expecting a different result.

Something doesn't work? Change a variable, still doesn't work, change a variable.
The variable can be the stock!

I've had stuff take a while to sell. Had other stuff sell in days.
You adapt, adjust, move on. What doesn't sell you don't then buy again.

 

[fisicx]

Something doesn't work? Change a variable, still doesn't work, change a variable.

I tried this with beer. A different one each day but no matter which one I drank I still got drunk.

 

[MarkOnline]

Whatever the reason its not going too well, your failure to react, isnt a great sign of your next venture being any different to this one.
This entrepreneurship/business person malarkey isnt for everyone.