newweb started this topic @ 00:16 on 17/09/2003
I am about to start a new business involving online retail whereby goods are ordered online and shipped out to customers via post.
My dilema is that i do contract work for a company with a similar setup, this is not major contract work and is fairly small in its income (probably only £1000 a year)
they also supply goods that I would wish to sell on my new website, my idea was - should I approach them with my new online business and suggest to them that they can have all my orders and i take a cut of that, while they supply the goods from their warehouse
which would save me the hassle of dealing with the orders myself (which would be a big help, albiet with less profit)
or..
Should i just go ahead with the idea myself which will create a larger profit margin but i would be dealing with all the orders and may be harder to get suppliers.
if I do it myself it will be harder, but if I go to them it will also give away what I am planning to do which is a risk if they are only willing to offer a small percentage.
thats my dilema
RE: startup dilema
bec | 17/09/2003 11:35 AM
Tough one,
It depends what you do for them and what you want to supply - how revolutionery is your idea? If they are big guys they would take the idea anyway and could you make them give you a cut?
I would be inclined to DIY - do you need to hold large stock, this is costly, couldn't you just get from your suppliers and send on to customers
Hope this helps
good luck
bec
RE: startup dilema
kermey | 17/09/2003 01:39 PM
You could try your idea with them first then move onto to doing it yourself? See it as test trading and hopfully raising capital at the same time.
I would be inclined to take the bigger risk and do it myself if i were confident in the idea but thats just me
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RE: startup dilema
newweb | 17/09/2003 03:35 PM
yes I think I will try it myself first, then if it doesnt work out, just hand the orders over to them.
The game will be given away if I go to them first, my problem isnt so much the orders as i know I can get them, it is the actual suppliers, being new it might be more difficult to supply products that a company like them have been doing do for so long.