RRR started this topic @ 17:32 on 11/04/2004
My business partner and I are in the process of setting up an online business selling food and non-food upmarket products. We have a USP which we feel will work - as we will be selling a particular type of product which people buy already in volumes but in a new way.
However because of this very USP, it is difficult to gauge how well it will sell, and therefore to do a sales forecast for the business plan.
There are companies doing what we will be doing but they are traditional in their products whereas we have this new idea. Some of these are doing very well (those who have been around many years) whilst others are so small they do not even have to declare full accounts. Yes we do not want to remain small for long, our goals are big!
The question (yes, the million dollar one!) is: how can you tell if a new idea will work?
We have done a lot of research (Keynote / Mintel reports, competitors, industry info, etc) and things look positive. What we have yet to do however is speak to would-be customers.
We are creating a whole new brand and image for this company, with a well-designed website and stationery. Everything you would expect from a good service thesedays.
I guess what I'm really asking is: As long as the price and quality are right, can ANYTHING sell, as long as you get the marketing right or keep on marketing it?
Look forward to comments.
RRR
RE: Setting up an online and mail-order business
Zest4 | 11/04/2004 08:42 PM
Depends on what you are wanting to use your business plan for. If it for borrowing, then your forcasts need to be backed up by evidence normally market research. I would suggest that you start by identifying who would buy your product ie what income group, geographic area etc and then set a definition on here to take a straw poll on what would appeal. Another way is to do an online poll, another is to purchase a database and call up those names to ask them. Whilst none of these give certainty they provide more information.
Let me know if you need any more help.
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Emma Thorpe Zest4 www.Zest4.biz 01244 300858
RE: Setting up an online and mail-order business
RRR | 12/04/2004 09:45 PM
Thanks for your reply Emma.
Yes, the business plan will be to raise some finance.
Regarding an online poll, could you explain how to set this up? Do you mean on a forum like this, or some other way?
We are now planning to advertise our product via a flyer targetted at our potential customers and see what response we get. This will mean that we will have to source some of our products at retail not wholesale prices as we will be looking at small quantities for this exercise, but it will mean a small financial amount compared with the risk of a full launch, which we will do depending on the repsonse we get with this small run.
It would be really useful to know at what stages of market research other people launched their companies that sell products online? What level of risk did you feel you were taking? Were you within or outside your comfort zones??
Look forward to any comments.