Rip My New Business Idea To Shreds Time
Discussion
Happy to put this "out there" as its a regional thing plus a lot of people will think its a duff idea but I think it has legs.
However as I am a hopeless optimist can some (all of you) point out the issues. Anyone who says "its not for me because x" is welcome as its obviously not for everyone but if I can find 6 initially I have a business.
Overview - A "greenhouse" with every element supplied to help a small ecomm business grow
Client - Start up or small eCommerce companies that need to hold stock and ship physical
Offer - Warehouse space, office space and shared on site IT, consulting, carrier deals, financial help via negotiated rate accountant, same with legals, insurance, etc etc (everything a small biz needs)
Cost - I am thinking a flat rate £400 a month plus services as required for that they get x rack space and a desk, phone etc I can fit 12 in my unit maybe 14.
I see a commune / self help vibe and would be careful to only have none competing companies <b>HOWEVER one issue I see is one company seeing another selling loads of teapots and starting to sell teapots rather than hinges - not thought of the answer to that.</b>
However as I am a hopeless optimist can some (all of you) point out the issues. Anyone who says "its not for me because x" is welcome as its obviously not for everyone but if I can find 6 initially I have a business.
Overview - A "greenhouse" with every element supplied to help a small ecomm business grow
Client - Start up or small eCommerce companies that need to hold stock and ship physical
Offer - Warehouse space, office space and shared on site IT, consulting, carrier deals, financial help via negotiated rate accountant, same with legals, insurance, etc etc (everything a small biz needs)
Cost - I am thinking a flat rate £400 a month plus services as required for that they get x rack space and a desk, phone etc I can fit 12 in my unit maybe 14.
I see a commune / self help vibe and would be careful to only have none competing companies <b>HOWEVER one issue I see is one company seeing another selling loads of teapots and starting to sell teapots rather than hinges - not thought of the answer to that.</b>
Great idea, in theory.
In practice, people have a tendency to be distrusting & cynical. A local business centre that just rents out small units to start ups at a low(ish) cost seems to be very popular, your idea takes it to the next level. I suspect turnover of occupiers would be high, many leaving unapid bills.
In practice, people have a tendency to be distrusting & cynical. A local business centre that just rents out small units to start ups at a low(ish) cost seems to be very popular, your idea takes it to the next level. I suspect turnover of occupiers would be high, many leaving unapid bills.
You may have done this already, but as well as doing a strategic plan for your own business have you done the same on your (potential) customers'?
This will tell you if the service you are offering is viable for them. It will also give you an idea how strong their businesses might be and, therefore, if your own is viable.
Its no good starting a service if the market place doesn't exist or it is so competitive that they operate on tiny margins and couldn't afford the £400 per month, for example.
Similarly, if the types of businesses you are selling to are sensitive to certain external economic factors (and they will be to varying degrees), then so is yours so you need to understand them. The same applies to their competitive environment.
This will tell you if the service you are offering is viable for them. It will also give you an idea how strong their businesses might be and, therefore, if your own is viable.
Its no good starting a service if the market place doesn't exist or it is so competitive that they operate on tiny margins and couldn't afford the £400 per month, for example.
Similarly, if the types of businesses you are selling to are sensitive to certain external economic factors (and they will be to varying degrees), then so is yours so you need to understand them. The same applies to their competitive environment.
I am not a genius (far from it) but my brother in law is area manager for a large self store and thats where the idea came from as they have started a "rent a desk" but its not ideal and this takes it to the next level. They are rammed, with the full allocation taken up in 2 weeks (London).
My unit is 50 yards from the biggest Wirral self store place, maybe I could poach business?
Keep it coming please
My unit is 50 yards from the biggest Wirral self store place, maybe I could poach business?
Keep it coming please
I'm a harsh 'Dragon', but I have to say that's pretty good.
A company that we've worked with for a decade has just started offering what you've explained to their clients. The twist they have is that they will do despatch as well as the storage.
The costs are X to answer each call with your company name, X per palette storage and shipping. Of course the client benefits from economies of scale on the shipping.
Their target audience is small companies that work from small office space or home-businesses.
A company that we've worked with for a decade has just started offering what you've explained to their clients. The twist they have is that they will do despatch as well as the storage.
The costs are X to answer each call with your company name, X per palette storage and shipping. Of course the client benefits from economies of scale on the shipping.
Their target audience is small companies that work from small office space or home-businesses.
it's combining fulfilment with office space essentially. Your potential clients options when starting their online sales companies are very limited when it comes to space and most will just get an office which is expensive per sq ft and the little extras are no cheaper than what you're suggesting if they need stuff like internet and phone services. So in a roundabout way you're offering a more professional/supported setup for what they'd pay for an office and maybe a part time staff member.
I'd say it's a good idea if you can find the right people and you can make sure it'll be profitable (and doable) after you've provided the services at an agreeable price.
I'd say it's a good idea if you can find the right people and you can make sure it'll be profitable (and doable) after you've provided the services at an agreeable price.
I had an idea very similar to this which I'd love to be in a position to do one day, not convinced it's a full on profitable business though.
As you say, smaller easy in easy out office units with associated storage area.
The usual use of internet/voip etc.
Similar but non competing companies
A shared courier accounts with daily pick ups - would take some managing... but big issue for smaller sellers is they may not have enough volume to get a courier account, or may not have daily pick ups etc.. so having a shared account would be great for smaller companies.
On site virtual assistant, registered address feature etc..
To be honest as mentioned elsewhere in this thread it's nothing new, just shared offices but with added fulfillment. If you own a unit outright, have some spare time and have a small business of your own using part of the premises, then it's something I'd do just for company/fun! I'd choose interesting companies and make my own Google-esque business park! (sure it don't work like that in real life though
)
As you say, smaller easy in easy out office units with associated storage area.
The usual use of internet/voip etc.
Similar but non competing companies
A shared courier accounts with daily pick ups - would take some managing... but big issue for smaller sellers is they may not have enough volume to get a courier account, or may not have daily pick ups etc.. so having a shared account would be great for smaller companies.
On site virtual assistant, registered address feature etc..
To be honest as mentioned elsewhere in this thread it's nothing new, just shared offices but with added fulfillment. If you own a unit outright, have some spare time and have a small business of your own using part of the premises, then it's something I'd do just for company/fun! I'd choose interesting companies and make my own Google-esque business park! (sure it don't work like that in real life though
)I would look at using your experience and knowledge as a basis along with the spare office space for an incubator style setup that if successful will see you get the maximum return from your time investment.
You have been in the game long enough to know a good idea and there are a lot of smart young companies out there which just need some infrastructure and day to day business experience.
Give them 3 - 6 months space free in return for 5 - 7% equity along with you mentoring them along the way. Give them access to free legals and hold weekly meetups to share skillsets etc.
Finally , round up some external investors who will come along and take a look at what's been created, tae a cut of that as well.
The original idea would work as well but its the tenants who are getting the better deal. It took you years to master your skills dont sell it cheaply. The last thing you need is a bunch of under funded dreamers who cant pay their adwords bill never mind the rent.
You have been in the game long enough to know a good idea and there are a lot of smart young companies out there which just need some infrastructure and day to day business experience.
Give them 3 - 6 months space free in return for 5 - 7% equity along with you mentoring them along the way. Give them access to free legals and hold weekly meetups to share skillsets etc.
Finally , round up some external investors who will come along and take a look at what's been created, tae a cut of that as well.
The original idea would work as well but its the tenants who are getting the better deal. It took you years to master your skills dont sell it cheaply. The last thing you need is a bunch of under funded dreamers who cant pay their adwords bill never mind the rent.
uber said:
I would look at using your experience and knowledge as a basis along with the spare office space for an incubator style setup that if successful will see you get the maximum return from your time investment.
You have been in the game long enough to know a good idea and there are a lot of smart young companies out there which just need some infrastructure and day to day business experience.
Give them 3 - 6 months space free in return for 5 - 7% equity along with you mentoring them along the way. Give them access to free legals and hold weekly meetups to share skillsets etc.
Finally , round up some external investors who will come along and take a look at what's been created, tae a cut of that as well.
The original idea would work as well but its the tenants who are getting the better deal. It took you years to master your skills dont sell it cheaply. The last thing you need is a bunch of under funded dreamers who cant pay their adwords bill never mind the rent.
Could you combine both ideas?You have been in the game long enough to know a good idea and there are a lot of smart young companies out there which just need some infrastructure and day to day business experience.
Give them 3 - 6 months space free in return for 5 - 7% equity along with you mentoring them along the way. Give them access to free legals and hold weekly meetups to share skillsets etc.
Finally , round up some external investors who will come along and take a look at what's been created, tae a cut of that as well.
The original idea would work as well but its the tenants who are getting the better deal. It took you years to master your skills dont sell it cheaply. The last thing you need is a bunch of under funded dreamers who cant pay their adwords bill never mind the rent.
You say you want to charge £400pcn, if we say your actual costs are £200pcm, could you offer it at £200pcm for say 8% share in the business and £500 flat rate with no share in the business?
You could offer a weekly mentoring session for all for added value + all the support you have talked about. You clearly know your way around a good idea/business so could negotiate % v monthly payment easily.
If you worked on the principle of it being a twelve month contract their choices at the end would be;
1) renegotiate to stay a further 12months (more % of business to you - or £500 a month)
2) fold and walk away (you lose nothing and just replace their business with another)
3) They move into bigger premises and grow (You continue to own whatever % or they offer you a buy out)
Sounds like a good idea to me
Well surveyor says prime unit will rent at £2000 and a tickle maybe a month and should go fast, if I get 10 "tenants" its just worth however is that feasible.
I am getting a fabricator that works for one of the storage guys to quote after my BiL tells me the most popular size space internetters take
It may not be worth it in such a small unit, but is their demand for say 20+ mini companies near me.
I need to do some research ..............
Thanks for contributions, I also intend to run a new small start up etail biz for myself from the same place
I am getting a fabricator that works for one of the storage guys to quote after my BiL tells me the most popular size space internetters take
It may not be worth it in such a small unit, but is their demand for say 20+ mini companies near me.
I need to do some research ..............
Thanks for contributions, I also intend to run a new small start up etail biz for myself from the same place
I'm based in the South East and looking at starting a small e-commerce retail business alongside my current work, so (apart from location) your offering would be interesting.
There are a number of incubator/shared work spaces around here, though not many of them seem to completely address physical retail (lots of web service startups that really only need a desk).
What would be helpful? Your offering seems to be targeting people who've basically set up a site, payment and so on, and need fulfillment on top of that. There are a few companies that offer remote fulfillment so do people need to have physical access, if they've already set up from home? Assuming they do, what are you offering to tempt them into your cosy warehouse?
Personally, I'd prefer to have a package to get you going - so tiered access to services that take you from exploring an idea to full e-commerce. The benefit being some shared communal services so that you have opportunities to learn, share resources, network and so on. At the bottom end you'd want shared desk space. At the top end you'd want fulfillment, a postal address, company phone (with customer services), returns handling and some IT support. There are plenty of cloud providers of e-commerce solutions, but the physical stuff (just having someone to answer a phone) is difficult when you're starting up and might be juggling your new business alongside another 'day job'.
Similarly, the process of setting up a business (registered address, merchant account etc.) is a pain in the proverbial when you just want to knock up a website to test an idea.
I'm still getting my head around what I'd need to do to get a business off the ground without completely disrupting my existing work. Offerings like this are possibly the answer, so hurry up and sort it out, and then please open one down here!
There are a number of incubator/shared work spaces around here, though not many of them seem to completely address physical retail (lots of web service startups that really only need a desk).
What would be helpful? Your offering seems to be targeting people who've basically set up a site, payment and so on, and need fulfillment on top of that. There are a few companies that offer remote fulfillment so do people need to have physical access, if they've already set up from home? Assuming they do, what are you offering to tempt them into your cosy warehouse?
Personally, I'd prefer to have a package to get you going - so tiered access to services that take you from exploring an idea to full e-commerce. The benefit being some shared communal services so that you have opportunities to learn, share resources, network and so on. At the bottom end you'd want shared desk space. At the top end you'd want fulfillment, a postal address, company phone (with customer services), returns handling and some IT support. There are plenty of cloud providers of e-commerce solutions, but the physical stuff (just having someone to answer a phone) is difficult when you're starting up and might be juggling your new business alongside another 'day job'.
Similarly, the process of setting up a business (registered address, merchant account etc.) is a pain in the proverbial when you just want to knock up a website to test an idea.
I'm still getting my head around what I'd need to do to get a business off the ground without completely disrupting my existing work. Offerings like this are possibly the answer, so hurry up and sort it out, and then please open one down here!
Tuna said:
What would be helpful? Your offering seems to be targeting people who've basically set up a site, payment and so on, and need fulfillment on top of that. There are a few companies that offer remote fulfillment so do people need to have physical access, if they've already set up from home? Assuming they do, what are you offering to tempt them into your cosy warehouse?
!
No - no fulfillment of any kind, its advice and business help that is the difference plus cheaper services, your pick, pack and wrap all on your own.!
jamescodriver said:
Can you fit containers in your unit? So each business has their own container, even if they are off site, maybe they have a small office and work from home but need the next level of storage to supply stuff? just to offset people not wanting the office space?
Good shout - I think maybe 20 in two rows with pallet access - good food for thought, with a nice desk area as well separate.
If you're going to do containers you might as well put them outside if possible. It's a market in itself anyhow.
Creating cages (with metal fencing type stuff) indoors would be much, much cheaper and cleaner if you want to segregate warehouse space. If people want stuff in big containers for any reason you could easily get those wooden ones and have them inside one of the cages.
I misunderstood and thought you'd do a bit of fulfilment with this business. It's maybe an idea to consider if clients will pay for it.
Creating cages (with metal fencing type stuff) indoors would be much, much cheaper and cleaner if you want to segregate warehouse space. If people want stuff in big containers for any reason you could easily get those wooden ones and have them inside one of the cages.
I misunderstood and thought you'd do a bit of fulfilment with this business. It's maybe an idea to consider if clients will pay for it.
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