Should I invest in this business venture?
Discussion
I received a letter today from a lady that wants me to invest in her business expansion. The letter didn’t tell me anything specifically, only that it was a retailer involved in alternative therapies – primarily for women. Anyway, I’ve just came off the phone with her, whereby I asked some fundamental questions. As follows:
What percentage of people that go into the shop, buy something? 80%, I’m told.
Blimey that’s good, how much is the average spend? £1.50.
Why’s it so little? Because most of them are after tea or coffee.
Why tea or coffee? Because the shop is halfway up a mountain and ramblers often come in.
How many customers do you get a day? About 20.
How much alternative therapy items do you sell? Couple a month. It’s not easy for pregnant women to get to.
How do you plan to increase turnover? I’d like to employ an assistant to free me up to spend time placing adverts in local newspapers.
Hmm… Should I invest in this business mdel?
>>> Edited by srebbe64 on Thursday 3rd February 15:39
What percentage of people that go into the shop, buy something? 80%, I’m told.
Blimey that’s good, how much is the average spend? £1.50.
Why’s it so little? Because most of them are after tea or coffee.
Why tea or coffee? Because the shop is halfway up a mountain and ramblers often come in.
How many customers do you get a day? About 20.
How much alternative therapy items do you sell? Couple a month. It’s not easy for pregnant women to get to.
How do you plan to increase turnover? I’d like to employ an assistant to free me up to spend time placing adverts in local newspapers.
Hmm… Should I invest in this business mdel?
>>> Edited by srebbe64 on Thursday 3rd February 15:39
h. I was going to do that. Looks like she has cornered the market already. Bugger.
anonymous said:
[redacted]
She was a friend of one of my cousins. I'm not interested in investing in something of which I don't hold a majority equity. I only phoned the lady up to keep my cousin happy! Although, in point of fact, I told her that her business model had one or two weaknesses:
1) No market.
2) No profit.
Apart from the above, it's probaly a good idea.
Point being, my advice may well have put her nose out of joint and my cousin might be upset with me anyway. As such, I can't win "I'm damned if I call, damned if I don't call".
srebbe64 said:
in point of fact, I told her that her business model had one or two weaknesses:
1) No market.
2) No profit.
Apart from the above, it's probaly a good idea.
Shes probably like my current boss, who is about to lose his last competent programmer (me). His issue is that he fails to understand that even if you have customers, it means nothing if you have no people to make the things you want to selll them!
cept the other way round of course.
anonymous said:
[redacted]
To my mind, the issue is not actually the business model - it's the person behind it. Anyone that has come up with the business model which is proposing, clearly has no business accumen. When I invest my cash, I invest it first in the 'person', and then in the idea.
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