R20000-R50000 to startup a business? How to go about it?

[Blurock]

Pardon me for being negative, but I have serious doubts about the viability of E-cigarettes as a stand alone business. If it works and they stop smoking after a week, where will your recurring sales come from? The chain stores include E-cigarettes in their product mix, so can be more aggressive on pricing. Will you be able to compete?

What will your R50k buy? An exclusive agency or just stock? What does the fine print say? Does that include advertising and promotion? Where will you sell from, online or from fixed premises? Or are you going to sell directly to the chain stores, in which case you'll have to pay a hefty listing fee and rebates etc etc.

Talking to family and friends is good, but can not be considered as market research as these are often people who who do not want to embarrass you by shooting you down.
R50k may not be enough to invest in a sustainable business. Are you looking for a short term opportunity or do you want to create wealth?

[bjsteyn]

Pardon me for being negative, but I have serious doubts about the viability of E-cigarettes as a stand alone business. If it works and they stop smoking after a week, where will your recurring sales come from?

It uses liquad based refills which cost around R100 and last about a month (price varies for flavour) . The one guy at my office has been using it for around two years after he stopped smoking and is still using it. That is where me and the other guy at the office heard about it.

The chain stores include E-cigarettes in their product mix, so can be more aggressive on pricing. Will you be able to compete?

There is no real advertisement on Electronic cigarettes in East London. Will have do some research before i will have more information, which i will be doing this weekend. @Dave A and @Blurock i have sent you link to the suppliers. For obvious reason i don't want to post it here.
@Tec were are you from?

What will your R50k buy? An exclusive agency or just stock? What does the fine print say? Does that include advertising and promotion? Where will you sell from, online or from fixed premises? Or are you going to sell directly to the chain stores, in which case you'll have to pay a hefty listing fee and rebates etc etc.

An agency, youre name will be published on there website as an agent. Receive R67 000 worth as stock. (I presume at sell value). You can make up the stock from any of there product, the just give suggestions. He said they do protect there agents and can only garuntee an area in a city. But when i mention EL he said there will "probably" only be one agent for EL. If i persue this agency, I should try and get that on paper. And from the supplier point of view if you are there sole agent should there be some sort of performance clause.

Talking to family and friends is good, but can not be considered as market research as these are often people who who do not want to embarrass you by shooting you down.

I will create an survey to find out more if people would be willing to pay and what they will be willing to pay for an quality e-cigarette and to stop smoking in EL. Then again I know my way around the web and how to market / sell on line.

R50k may not be enough to invest in a sustainable business. Are you looking for a short term opportunity or do you want to create wealth?

This is an short term business opportunity for me. I want to start my own IT company eventually. I am a programmer for an IT company at the moment.

I have tried many opportunities, and am still to find the one that is going to work. But without failing there can't be success.

Thanks
B.J.

[tec0]

Pardon me for being negative, but I have serious doubts about the viability of E-cigarettes as a stand alone business. If it works and they stop smoking after a week, where will your recurring sales come from?

Right basted on my own research, and it is by “no means conclusive” but there seems to be repeat business opportunity lurking as some smokers use this product as an alternative as it is more acceptable in public places, offices, and Medical facilities.

As a standalone business it has almost no chance. Being on the supply side is a better bet but the demand is questionable but as it is short term it may still be worth looking into. If you are looking at the supplying side get the books and evaluate who the customers are and if there is a pattern.

If you sport customary behaviour look at the size of the orders are they the same each and every time. This will give you a feel for the market and if there is value or not. Just make sure the books are honest....

I remember health products that used a similar based system to get people to buy the product and invest. BUT turned out to be a can of worms.

Whatever you do just be careful.

[bjsteyn]

I went to look were the product was being imported from, and found that there is one more person importing it. What is stopping that person from selling so called protected "agencies". When importing goods is there any sort of agreement were you can sell?

[Dave A]

I went to look were the product was being imported from, and found that there is one more person importing it. What is stopping that person from selling so called protected "agencies". When importing goods is there any sort of agreement were you can sell?

I'm so glad you're doing the research, BJ. There are plenty of sharks out there.

And not much to stop you from being their prey other than eyes wide open, I'm afraid.