Business Opportunity - Time to LAUNCH!

Business Opportunity - Time to LAUNCH!
Thursday, February 4, 2021

Business Opportunity - Time to LAUNCH!

As a Consultant and Services Provider to Entrepreneurs, Small Business and Enterprise-Level Companies, we are now seeing the culmination of the Perfect Storm!

We could look at the World, but there is more than enough to focus on, looking at the USA.

Economic Conditions have created PENT UP DEMAND

Types of Business Opportunities range from hitching up with existing companies as a sales-rep to franchises, to creating an online shopping channel, to starting your own business from scratch.

The Side Hustle

Either you're under a Stay At Home Order, have Lost Your Job, family conditions require that you Stay at Home, or you're just fed up with being at the becoming call of a 'BOSS'!

A Side Hustle is normally the first step to Independence.  For some, it's holding yard sales, for others, it's referring a product or service in social media... for all, it is the start of taking charge of your own Future!

At some point, you're ready to make enough to pay a car payment or house payment... to get beyond buying your next cup of SB coffee.

The Shopify Seller

Many will find themselves jumping into the dream of a Shopify storefront, where you'll earn millions for selling product you never touch!  Good luck!

This normally begins with spending $150 to $3500 to have someone design an AWESOME Shopify Store, and perhaps pre-load it with dropship products. COST

You choose some apps from the marketplace, some cost.

You find the design/layout doesn't work for you, so you pay someone to edit it again.  COST

Your first sting comes, when you get one order in 90 days.... and that was the test order, you placed from yourself!

Yes, to sell anything, you need customers, soooo, you need to spend advertising dollars to promote your site/products. COST

..Unfortunately, your ad is competing against every other ad, and the viewers are seldom interested in 'your' product.

..Finally, a true sale, someone you don't know.. AWESOME!

The order is pushed to the drop shipper, your CC is charged, they ship it out... ok, this might work!

Six Weeks Later, an email from the customer... I 'finally' received the product and it's not what I expected/damaged/cheap/etc.

What happened? Well, drop shippers, that are widely used, are CHINA suppliers, even if they somehow begin warehousing in the US, they are CHINA suppliers.

There are some US suppliers, but the products are more expensive, and you might go a year before getting a sales.  Thus, so many rely on CHINA suppliers, in order to offer a product they 'THINK' might be priced to sell... But quality and time to deliver eats up any positive customer satisfaction you are aiming to build.

In 6 Months, you may have spent $1500 to $4500 and be up or down minorly... You're back to square one.

The Amazon Business

Ok, so you shift to an Amazon Model. Here, you step up your game and may fall between 2 paths. One, you still drop ship, using suppliers that are warehousing in Amazon, so delivery is better. This says nothing of Quality, as CHINA products are busting out the seams at the Amazon warehouses.

In order to really operate as a business, insure delivery, and quality of your brand... you MUST begin selecting your products, in person, purchasing quantities and warehousing in Amazon. COST COST

Now, you also realize image is important, so you hire someone to setup the Amazon store and perhaps branding of some Labels or Flyers to insert into product packages. COST

And now, you are displayed on a large shopping platform, amongst, THOUSANDS of others! You are a Needle in a Haystack. So, you must drive people to your products... drum roll please.... we need an Advertising Budget!  We need to advertise WITHIN Amazon, outside on Social Platforms, and on advertising Networks. COST COST COST

You gain some sales, fantastic! You gain enough sales to 'MAYBE' cover your advertising spend.. if you were good at it.. BUT, what of covering the Cost of Good, the money spent to purchase the product, and what of your other costs, hosting, apps, services, and yourself?  NADA

Ok, so now, in 6 months:

  • $12k Spent on Inventory
  • $9k Spent on Advertising
  • $3k Spent on all other Expenses
  • ...Total Out $24k
Sales Revenue (Minus Tax and Ship)
  • $9k AWESOME, but 60% was Cost of Inventory
  • $5.4k Inventory to Re-Purchase
$12k Inventory is now on hand
  • $17.4k Spent on Inventory
  • $9k Spent on Advertising
  • $3k Spent on other Expenses
Total Out -$29.4k
Total Revenue -$9k
Sample Net Profit -$20.4k
Considering we have Asset $12k on the Shelf
Sample Net Net Adjusted -$8.4k

Question, do you continue another month or 6 months?
Or, do you sell your inventory at cost to clear the shelf and suck up the $8.4k loss?

The Franchise Business

So, you really want to step up your game, let's talk Franchise Businesses! Just the Agreement/Purchase of a Franchise, can be as low as $10k to $15k or as high as several hundred thousand!  The average initial franchise fee for a unit is about $20k to $35k.

Ok, so let's say you pony up $20k and locate a Franchise Business you feel good about. You pay the $20k, time to get rich, right! 

  • You need a location, Franchises care about their brand, so you need a store front.. so much for work from home COST COST
  • You need inventory, and the franchise agreement stipulated monthly inventory spend requirements, typically an initial minimum of $30k or more. COST COST
  • You pay a Royalty of all sales back to the Franchisor. COST
  • You have to Brand the Store, Materials, Marketing according to the franchise agreement. COST COST
  • You have a lot on the line, so you must spend on Advertising/Marketing... COST COST

We won't even begin to guess the costs on this one, as you are clearly beyond a home-based business and better have a Business Plan, Staff and Capital to go this path.

How about an MLM Business?

Launching an MLM Business, takes the best of many of the other Models, provides Greater Flexibility and sprinkles in a lower-cost of overhead, marketing and advertising.  Hmmm

You could, use a Drop Ship model with MLM, removing warehousing. Ok, but I would suggest you do inventory your product, even if you put it on shelves in your garage and ship from there.

Let's say you grab $5k or $10k of inventory, of a product you love and can get a great price on.

Next, cost of branding.. well you're not forced by a Franchisor to spend money here, only if you like. Some will drop $9 to print a simple Business Card to look like a Tag. Using a Paper Punch and a tagger, you can add your own tag to nearly any product.  Branding done!

Ok, you do need to reach customers, or the products will stay on the shelf. This is where the Magic of MLM comes in. If you plan a commission and bonus structure, to those 'referring' your sales, they become incentivized to refer more... costing you almost nothing in Advertising.  If the structure is planned well, into at least 2-3 levels, then there is typically expansion in customer growth.

Ok, Sales, Referrers, Customers... Now, you're down to managing your product supply chain, right? Not exactly.

Are you taking phone orders?

Are you calculating commissions on a piece of paper or spreadsheet?

..You will never scale like that, and your referrers will slowly fall away, seeing their own opportunity with you, is limited.

So, you do have a spend, on MLM Software.

MLM Software will be the front-end of your business... ecommerce selling to customers, an administration area to manage inventory and products for sale, managing orders to ship, calculation of commissions, based on paid orders, and an area or back office for your MLM Referrers or MLM Sales Reps, to see info on their own portion of business, genealogy, customers, reports, earnings, etc.

With MLM Software, there are many options, depending on your true needs, desire of growth, stability, features and complexities of compensation plans. In general, if extremely simplified, you could find an Initial Cost of about $5k and an ongoing monthly cost of about $500/mo. Again, based on the actual needs you have verses another. Another may have an Initial cost of $12k, $18k, $20k, $30k, or more.. with monthly of $500 to $5000.

Every MLM Business is different, and it is best to NOT be what every other company is, as they may have had tons of capital.

Be simple, be true, be honest. Sell products with tremendous value at fair prices and offer reasonable commissions. Ship on time and Pay commissions on time.  Rinse and Repeat.



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