| |
| |
|
Branding Information |
|
|
|
Getting Started in the Mail Order Business. How Much Does It Cost?
INTRODUCTION To get any business started successfully takes many ingredients. All requirements fall into one of the following four key categories: 1. Desire, 2. Knowledge, 3. Time, and 4. Available funds. This report deals only with the financial requirements of starting a mail order business. Hopefully it will help the reader to evaluate whether he is financially able to embark upon a business venture that will bring about success. It is generally true that it takes substantially less money to get started in many mail order businesses than in a variety of other businesses. Many a promoter will want you to belive that it is possible to get started successfully for $50, $100, or even $200. However, it is totally false. It does take more than that. How much more depends on many factors which I will try to define as much as is possible here. Since the mail order business covers a vast number of services and products I would like to define the contents of this report to deal with the selling of information products. This is where my expertise lies. While the same or similar conditions may apply to any number of other mail order businesses, there may however be some differences to selling information products such as books, etc. The following makes a number of assumptions. The most important ones are: 1. The operator ( or operators) of the new mail order business is employed or has other means of income.. He will not need to derive any profit from his new business for a period of time.. How long will depend on many factors. 2. This is a home based business which has no employees. 3. The business, at the start - until volume reaches $3,000 to $5,000 per month - will utilize the drop shipping services of a wholesale company. 4. Basic office equipment such as desk, file cabinet, computer, etc... are on hand. A WORD OF CAUTION AT THE START AND RESOURCES AVAILABLE TO YOU This is an exciting business and it can be extremely profitable once it reaches a certain momentum. However, like almost all businesses it is a very cost sensitive business. As you are getting started in planning and setting up your new business think and act with caution when it pertains to any expenditures. This is one of the most difficult things to do since you are probably very enthusiastic and want to do everything today. So you need to learn HOW TO CONTROL YOUR ENTHUSIASM or it is going to cost you lost of extra money. In this state of enthusiasm we tend to think that there is nothing we can do wrong and since we will be making lots of money in a few months lets get all necessary and often unnecessary supplies and equipment. It would be much better to wait until profits of the business make it possible to acquire what is needed. In the meantime you can make do with less. To be able to do so is a most important quality for the owner of a small to do so is a most important quality for the owner of a small business. If you are a parent think of your new business as a child. There will be a never ending sequence of surprises. And as the business grows so will its demands, and yes its expenses. START-UP EXPENSES -- INITIAL STAGE The below listed expenses will be incurred in the very early stages of setting up your business. This is at a time when you probably are not sure as yet what you will be selling. You will be writing to different companies for information to come up with the right product selection. Once you have decided what it is you will be selling you have to line up reliable suppliers, This is also a good time to buy a few books to help you with your mail order education. Although most expenses incurred in this phase are relatively small they will add up quickly. These prices are estimates. Prices will vary according to your location.
START-UP EXPENSES -- SECONDARY STAGE You have now reached the point at which you have decided upon one or more reliable suppliers for the product you wish to market. You may also be ready to have some promotional material printed. In addition you may be placing one or two classified ads for testing purposes. Once again, please remember that these prices are estimates only.
Until now you have only had expenses for your new business. You have not derived any revenue yet. In the next and final stage of starting your business you may have some revenues. Stage one and two may take from approximately 3 to 6 months. START-UP EXPENSES -- THIRD STAGE You have now reached a stage were you will expand your advertising, or alternately you may go the direct marketing route and rent a mailing list. The comparison of expenses and revenue results of a direct marketing effort versus classified advertising need to be carefully evaluated. Since expenses for a direct marketing effort are generally higher than for a small advertising campaign, the below listed expenses focus on an advertising campaign, Estimates provided for illustrative purpsoes only.
SUMMARY The combined expenses as listed above total just under $1000. They are based on broad estimates and may vary somewhat by area of the country and individual circumstances. The figures are reflecting a minimum amount. Some individuals may be able to cut expenses further. Since this planning period takes several months the expenses as shown above can be allocated over a period of 4-6 months. The above figures represent a conservative start. For those who want to get started more aggressively expenses would be higher. While many of the basic start-up costs would be the same the expenses that would increase would primarily deal with additional advertising, printing and postage expenses. By how much would largely be an individual decision. Since most new businesses fail because of lack of funds, it would be advisable for an individual who does not have the necessary funds to get started to wait until he does. In addition to the basic start-up expenses an individual should also consider that most businesses will loose money for several months and sometimes much longer than that. Unfortunately no matter how well you plan, circumstances often change and we must make allowances for those eventualities. Copyright 2004 by DeAnna Spencer Note to editors: To show my appreciation to the editors that use my articles, I offer a free solo ad. Simply send an email to me by using the form on the contact me page on my website to tell me the url the article was used on or send me a copy of the ezine it was used in. This article may be redistributed freely on the Internet as long as the resource box remains intact.
MORE RESOURCES:
Branding - Google News |
|
|
|
RELATED ARTICLES
The Brand Called You The best brands always try to do the right thing, so that their reputations will remain unsullied. But beyond that they grow, evolve and get better with time, while maintaining their special qualities from the past. Living Your Brand on the Web - Part 2 Now that everyone has conformed to Living Your Brand on the Web, Part 1, it's time to add a couple of tweaks that will further reinforce your brand.Tweak #1: Your Signature FileA signature file is the simple text that, once activated is attached to your email automatically. Donald Trump On Branding - Brand Identity Guru Love him or hate him, one thing is certain: Donald Trump is a successful guy. We don't have to sum up his accomplishments for you, because his name speaks for itself. Brand Image - Brand Identity - Brand Strategy - Brand Identity Guru Consumers perceive and accept many brands within a certain trade group in different ways. By personifying a brand (How would you describe brand X if it were a person?) we can find out, that for instance consumers perceive brand A as a young, impulsive, lively, attractive, energetic woman full of ideas. Logo Design - Corporate Identity Branding - Brand Identity Guru Like it or not it's who you are. Your corporate Identity touches all aspects of your business and plays a vital role in your customer's overall feeling with your organization. Counterfeit Branding - Representing True Globalisation! From cigarettes to fashion accessories to food products to medicines, more than 50% of the global market are filled with counterfeited products. Do you realise that the Nike t-shirt that you are probably wearing right now may not even exist in the design portfolio of Nike Inc. Fast Forwarding Your Business If you think only big corporate names need to think about things like brand names, think again. Your brand says a lot about you and your business, and that's as true for a one person home-based operation as it is for a multinational conglomerate. Your Small Business Name -- Important? You bet a name is important. Many small business owners try to come up with a clever name for their business rather than one that explains what they do. Branding: Bring Back the Jingle! Did you grow up in the '70s and '80s? If so, you probably have a slew of campy jingles from various TV commercials filed away in your brain. Today, advertisers still use jingles to help identify their brand, but not nearly as much as they did "back in the day. Logo-ize For Instant Identification & Increased Awareness The task of creating an indelible impact on the memory of your target market is arduous but can be made much easier with a well thought out logo. The word comes from the ancient Greek where it was used in philosophy and theology to mean "the divine reason implicit in the cosmos, ordering it and giving it form and meaning. Three Brand Identity Myths That Will Bring Your Business Down To begin, let's define "Brand Identity," which is the combination of consistent visual elements that are used in your marketing materials. A basic Brand Identity Kit consists of a logo, business card, letterhead, and envelope. 10 Secrets for Free Media Placement Why pay a high priced PR agent when you can get free media placement to promote your product, service, or book?Follow these top ten tips for 2005 and it will be your most profitable year yet!1. Write an attention grabbing headline. Brand Love, Part 2 Last issue, I talked about increasing your Brand Love-- meaning to increase the affection that prospects and customers feel toward your business.Why?Because increasing "affection" will build relationships. Naming Names... How to Name your Business Sometimes the best inspiration comes from hearing about the deconstruction of other company's names. For you, I am happy to share how I came up with"Slice A Day :: your slice on marketing". Branding Advertising Agency Branding used to be a fancy business word, but it is becoming more and more used in everyday business meetings. Finally! For decades, big corporations have used in-house, very well paid brand managers - someone in charge of managing everything that relates to the brand, including design, package and partnerships. Brand Identity Company - Brand Identity Guru Hiring a brand identity company is very important. In every marketing campaign, your company should have a solid brand identity on which to hang its hat. You'll Bring a Parade of Business to Your Door! Parades happen in every big city and many small towns. They are fun, relaxing and most people are there because they really want to be. Effective Branding...Whats in a Name! Ask any marketing executive and they will tell you that a company's name is golden. There are certain associations that people have with a name, one that invokes emotions -- good or bad. Branding Fiasco -- Better Be Who You Say You Are! Our experience as customers offers great instruction into the concept of branding. Come with me on a recent "experience" and you'll see what I mean. Branding On The Web Is Like Mining For Fools Gold I am sick and tired of marketing geeks touting the beauty of branding, brand building and just spouting branding in any context, especially when the term is used with "internet" or "web" or "digital!" You can't have a conversation today for more than five minutes without some marketing type throwing in a line about brand building!Branding doesn't work with the net's warp speed - look at some of the leading online brand builders, including a certain big three TV network here in the states and a book seller in Seattle trying to do classic brand extension, from books to barbecues.We tell our B2B clients to build a revenue-producing online brand by developing a campaign that sells the value of their goods or services! Forget the esoteric, very expensive brand building campaigns that have no measurable impact! Here are my ten "cliff notes" to building an effective B2B Brand Online, B2C coming next article.
|
| home | site map |
| © 2006 |
