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    4 Replies Latest reply on May 28, 2009 10:05 PM by RanksIntl

    Help to Expand?

    naviracer23 Newbie
      Hey Everyone,

      I began a website last February selling aftermarket parts, accessories and apparel for recreational motorsports and things have been going well. I initially started the site with $400 and at the time did not need to stock anything as I could drop ship everything. I set my first year goal to do $200,000 in sales which I met and I feel this is very good since I have not paid for any advertising as of yet. Most of the items we sell average 10% profit margin and apparel gets us anywhere from 15%-40% depending on the item.

      I have some questions because at this point, I am having issues fulfilling orders because I cannot stock enough merchandise due to my financial status (I am 25 and have bad credit from when I was 21) and I do not have any friends or family with the funds to help me expand and I cannot get a loan due to my personal credit. I could keep dropshipping things but I will never grow my sales because products are taking too long to ship. Right now, I have to wait 2 days until after a customer pays before I can order and ship their product from a distributor. The other problem with this is that if someone orders several items and they are from different distributors, it does not look professional to have 4 items on an order drop shipped from 4 different locations and arrive on 4 seperate days. Due to this, our shipping times are just not what they should be.

      So in order for me to expand this, I at least need to have $x.xx on hand so I can drop ship items the same day an order is placed rather than having to wait 2 days to first order and ship a product or I need to stock items. And if I am going to stock items, then customers should be able to walk in to make a purchase. Some suppliers we would like to carry that we get product requests for, need photos etc of a retail location but since we are located close to some of these companies, they would also have reps coming in.

      Basically, I would just like to know what your thoughts are on how I can do one of the above to expand this business into something more?
        • Re: Help to Expand?
          snipperred Scout

          Hi there,

          Sounds like you have a line of very complimentary goods. Consider networking with businesses related to you. One solution may be to distribute products through other companies whereby they pay you for the inventory in advance or at point of sale. Besides the benefit of retail outletting, you can likely negotiate some shared use of logistics infrastructure.

          Best,

          Anthony Reardon
          Nascent Dynamics ( ) Modern Business for the Modern Environment
          • Re: Help to Expand?
            hchung Wayfarer

            Hi there,

            I am manufacturer for Auto Parts. In your case, I do not really understand what are you really focus on, normal car parts or special car parts. They are totally different market. Also, if you got the parts from distributor, the cost should be very high.

            I suggest that you should think about with parts on that you will focus and understand the popular no. of the parts in the market.

            Any further question, let me know.

            Sincerely
            George
            • Re: Help to Expand?
              hchung Wayfarer
              Hi Naviracer23,

              Would you please provide more your information to me?

              Maybe we can coporate with each other to expand the business.

              I have plenty of Auto parts manufactory resource in china so I can get the best price and quality product.

              Please let me know, if you are interested.

              Sincerely
              Shou Ie L.L.C
              TEL: 786-219-8586
              George
              • Re: Help to Expand?
                RanksIntl Adventurer
                Hello,

                Your business sounds fascinating and it looks like you are off to a great start. So, as far as your concerns go, you are going to need a few things. The first thing is a viable business plan if you don't already have one. Due to the fact that you are going to have trouble obtaining loans through traditional financial institutions you are going to have to go another route either through commercial lenders, government lending or through venture capital investment. For all of these things you are going to need an up to date business plan.

                You are going to need to do research and find the best prices for manufacturers and distributors so that you can downsize the amount of possible investment and therefore increase your chances for receiving it. There is money out there to get you just need to know how to go about getting it.

                I specialize in small business start up and expansion so if you have any other questions or need any help you can email me at renee.rankine@ranksintl.com.