timmorgan started this topic @ 20:07 on 13/11/2007
I'm starting an online store business and was wondering what I should do to finance it?
Should I use my own money (£1000) to start the business and buy a small amount of stock allowing profit from sales to pay for more products/stock or should I go straight to the bank, get the finance I need and have more products/stock?
Thank you.
RE: Online Store Startup Finance
fred333 | 26/12/2007 06:49 PM
I think it all depends on the nature of the business.
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RE: Online Store Startup Finance
Jonny | 04/01/2008 11:15 PM
I suggest putting £1000 of your own money in and approaching the bank at the same time.
They'll be much happier to help you if you approach them up front rather and looking for 'provisional' funding.
This way - you'll have your own money there to start the business with the security of having the bank already behind you should things take off.
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RE: Online Store Startup Finance
theretaildoctor | 13/03/2008 11:31 AM
I would be very very careful.
Do you have a business plan? if so feel free to send it over to me greg@theretaildoctor.co.uk.
The bank would only get involved if the business stood up to its scrutiny. If you have available funds then yes, they would expect you to use them, as you believe your business will work. they are not going to risk their money if you are not prepared to do the same.
Is your website up and running? do you have projected sales and costs etc.
Be careful what stock you are buying, an option ( depending on the product you are selling) would be to drop ship to begin with. You would make less profit, but you would not be stuck with stock that doesnt shift. Once you know what lines sell well, thats when you can buy stock
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RE: Online Store Startup Finance
Andy1750 | 30/05/2008 10:26 PM
Hi Tim,
Endorse the retail doctor's comments. Having tried and failed on several occasions making money in online shops is very very very difficult. So many big chains now offering very competitive prices it's almost impossible to compete. In addition, web is swamped with millions of other small retailers trying to get their slice of the pie. In all honesty, the only way to succeed is targeting a very specific niche. At least by going with the dropship option you could test your concept/website before gambling so much money.
Be careful through. Many dropshippers are not what they seem and prices are often even higher than you can get from the big retailers. Good place to start looking is http://dropshipforum.co.uk.
Best of luck.
Andy
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