Let me step into the dragons Den

[BusFact]

Thank you all so very much for the feedback and advice.
@IanF, yes I understand what you're saying, and I am certainly a 24/7 person, if im not working, then something else but im not sleeping, it is my curse. I am a mechanical engineer, offer me an aquarium store or pet store making R30000 per month and offer me a Senior Engineer position offering R40000 per month, I will be in that aquarium store faster than you can say Fish.

I tend to be a bit more pessimistic / realistic Have you done the maths on running a shop where you intend to come out with R30k a month? Keeping in mind that rent in a retail centre could be around R20k, then a shop assistant (you can't be there the whole time) - that's another R10k, then insurance, security, bank fees, accountant fees .... soon you're up to another R10k.

So your business needs to generate R70k a month - that's gross profit, not sales. I don't know what the aquarium market margins are like, but lets assume you make a 100% mark up on your products. Can you sell R140k worth of fish / aquariums every month?

I don't know the answer, but you'll need to.

I think traditional retail is a tough market.

[adrianh]

Why did you study mechanical engineering in the first place? Don't you want to use this hard earned skill?

[wynn]

As promised here is the link to the first of the FREE!!!!! webinars on business start up.

http://www.academyofsmall.business/business-startup-videos-notes/?inf_contact_key=139f3c8b5ab181c70548bdbe1adcbea4f15a4b5f4cad55115fe00a305a617cb7

[wynn]

Here is the next link it lists the first and second webinar

https://vl219.infusionsoft.com/app/linkClick/1480/12e25bfc3d7ce021/98594/2c795b4df0f089d3

[wynn]

Here is the link to the third webinar

http://www.academyofsmall.business/business-startup-videos-notes/?inf_contact_key=9b778a483d3d4c25a44230000379da84964b9ec18a972b94e14c9b47499d1eb3

[wynn]

The fourth webinar has been added

https://vl219.infusionsoft.com/app/linkClick/1528/473b6957c4a4620e/110004/6d1b359cddd60f6b

Hope it is fixed now

[wynn]

I don't know if these links keep up dating or not but here is the latest one, there is one more after this

http://www.academyofsmall.business/business-startup-videos-notes/?inf_contact_key=b7079d1618c26771bb0acc036db8729b07e46613fd724231f6d566be26531866

[wynn]

Here is the link for the last of the series

https://vl219.infusionsoft.com/app/linkClick/1564/10c6197e8a14e164/128010/48cddf1d43064995

[Nikola]

Pizza delivery does not require large capital investments at an early stage. You can expand this business as you want.

[Stephen MacLennan]

Ok so lets imagine i am stepping into the dragons dens, and you guys are the dragons (though im not looking for money or investment...just advice for now)

I am a 29yr old male living in cape town and working as a GM at an engineering manufacturing company. I enjoy my work but every single day I dream about having my own business, and each day I dream, I lose a day I could have been running my very own business, as small as my ideas may be.

I would love to start a business in line with something I love, I love animals and I love food.

IDEA 1 - PET/AQUARIUM STORE: initially suppose to be an 'aquarium' store only but in the area I am eyeing, an aquarium store would not be enough as a large chunk of the community have dogs and Birds, the idea is now then an aquarium store which stock also small animals (cats/hamsters/rabbit) and a range of birds, and accessories, food and toys for all pets. The only issue with this one is start-up capital, it would require a large sum, while I have saved a sum, and intend to sell one of my cars as well, this will still not be enough, so would have to maybe look at investor or loan or or...

IDEA 2 - TAKE AWAY/FOOD: the idea is solid, the menu solid, the concept is there, but location is difficult one for me here, i have looked and looked and considered again and again but cannot decide on a suitable location for this type of business.

IDEA 3 - CONVENIENCE STORE(MINI SUPERMARKET): I have identified an area which requires this kind of business, the issue with this one is finding premises in this area, i am still looking however.

please bear in mind, these are ideas, who knows, i may end up opening a barber shop, the ultimate plan is to own my own business. i hope to start something up without leaving my current job just yet. i have a wife who is very much capable of managing a business for me,i will be available for the business after working hours and on weekends.
i would like some advice from the people here who have successfully started small businesses. what to look out for, what to avoid, i am very afraid, but i promised myself i need to start something before i am 30yrs old, infact i should have started long ago but every idea just does not seem right.

thank you all

Hey Biggs,

Love hearing about people wanting to start businesses There's obviously some great advice already above, but thoughts I'd pitch in my 2c. The hardest thing about starting a business (any business) is actually executing on an idea. There's a fantastic book that I highly recommend that you read called "The Lean Startup" by Eric Ries. Basically, before doing anything, you need to answer two questions for the business idea:
1. Will someone buy what I have to sell?
2. What price will they pay to buy it?

So there are a few things that are probably worth considering. You're obviously still investigating so give some thought to these.
1. The Shop and the Aquarium are capital intensive and you would seriously need to prove that there is a regular and urgent need for them. While the lack of an aquarium currently could be a great opportunity, its also a red light - perhaps people in the area aren't interested in fish?
2. The Fast Food/Delivery is also capital intensive but is affected by something a little more interesting, being the new tech delivery companies that are popping up (Check out Appetite and OrderIn - They're competitors to MrDelivery). I know you're more thinking about the location, but there opportunity to explore is that location is less of an issue with these companies popping up. (If you manage your overheads and gear the business for fast food and delivery, paying rent in prime real estate really isn't such a necessity).

You need to see if you can sell one meal, one aquarium etc to one person. Then try and sell to another, and another, and then try and get existing customers to buy again. You can be super creative with this process and how you go about proving these assumptions, but they will save you a lot of heart ache, effort and cash!!

An example for the above: for fast food, pick a cuisine, and offer to collect and deliver food of that type to any of your neighbours one weekend. Sounds a little ludicrous I know, but if you can't find a neighbour to take you up on a food delivery for a certain cuisine, chances are there may not be enough demand for it. Not the best example I know but hopefully it helps