Entreprenuer Start up
hmlittle59
Posts: 404
Hello All,
Need some input from ALL whom have experience. I have some boards designed, tested and Kit (enclosure) level also and I'm thinking about selling them either through another company or on my own. I'm looking for Business advice.
1) Set up a Business/Web Page and sell Boards/Kits/Software upGrade for different version
2) What's the Best software(cheapest) that will do this(Web Page,Take orders and keep me out of Tax problems.
3) There is a Company I found here in Austin,Tx. that has software that will seem to do all that (BigCommerce) is the name
4) Just try and start selling without the Business/copy right/Patent hassle through Electronic Mag.?
5) Sell through another company and save the head ache?
6) Go through Invent Help.com, let them do all the work?
7) Try and sell it here and see what happens?
Yes it has commercial potential.
Thanks for any advice
Howard
▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔
I'M STILL LEARNING SO MUCH...BUT STILL KNOW SO LITTLE!!!
hmlittle59
Need some input from ALL whom have experience. I have some boards designed, tested and Kit (enclosure) level also and I'm thinking about selling them either through another company or on my own. I'm looking for Business advice.
1) Set up a Business/Web Page and sell Boards/Kits/Software upGrade for different version
2) What's the Best software(cheapest) that will do this(Web Page,Take orders and keep me out of Tax problems.
3) There is a Company I found here in Austin,Tx. that has software that will seem to do all that (BigCommerce) is the name
4) Just try and start selling without the Business/copy right/Patent hassle through Electronic Mag.?
5) Sell through another company and save the head ache?
6) Go through Invent Help.com, let them do all the work?
7) Try and sell it here and see what happens?
Yes it has commercial potential.
Thanks for any advice
Howard
▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔
I'M STILL LEARNING SO MUCH...BUT STILL KNOW SO LITTLE!!!
hmlittle59
Comments
Doing this will allow you to not have to deal with much of the overhead of creating your own store (from scratch), and will give you more room/time to see what works & doesn't work.
For accounting & whatnot, Quickbooks seems to be a small business standard. If you can't afford it, use what you can afford, even if it's the OpenOffice spreadsheet. As far as staying out of trouble financially, hire a good accountant.
As for becoming an "official" business, you can get an EIN for free from the IRS, and can run a bussiness as a sole proprietership. If the cost to form an LLC is within your budget, it can be a big help in protecting your assets in the long run. A good accountant will help you with all of this.
I'm of the mind people should go ahead and start selling and don't buy anything now. If you start making money, THEN go out and buy stuff.
I should think that if you had people pay by PayPal and/or Click and Buy in Europe or whatever, then people could pay with credit cards and these would give you statements as to your sales.
There are web site providers like pair.com which have all sorts of ecommerce stuff ready to go. They can handle any size web site even including maintaining your own dedicated servers for you.
Then there is Open Office which has a free spreadsheet.
If you start making a lot of money, then the thing to do is get a CPA. Then ask the CPA which software he/she prefers. And have the CPA set up that software and your accounting for you. Nobody understands this stuff! And many CPAs use Quickbooks Pro for small businesses. You can export the numbers and email it off to the CPA each month or whatever.
So far as selling, I would do everything. Have distributors sell your product, sell it yourself, and mention it here.
Most important of all is to keep receipts of *all* expenses no matter how small. Profit is income minus expenses. If you don't have documentation of your expenses, the tax folks will call it all income! (Not good!)
As far as kits go, have two or three people put together your kits and give you feedback on it.
A lot of companies fail because they fail to reinvest their profit into their company.· You can also lose money for having a warehouse stocked with inventory that no one wants anymore.
One of the problems with selling internationally is that if you are buying·components from overseas, you can take a hit from the fluctuation in currency.
Other people use Zencart to start a business.
My township wants me to pay for a business license through them and they usually want to know how business is conducted through my home.
You also get these customers who give you grief because they say,"Why isn't your product $200 more?"·as if price alone determines the value of a product.·Products are sometimes based on what the market is willing to pay and you also have to ask for more because there may be those who want to bargain with you and get it for cheaper.
I know a guy who has a contract with a dealer to buy used cars that people trade in.· He has a contract to buy so many a month.· He sends the cars to a mechanic that fixes them up for a fixed rate.· He then takes the cars to sell in rich areas of the country that have no concept of money.
▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔
- Rick
I had one customer ask for an extended warranty and you have no idea if someone is going to abuse the product when they get it home but they say that the other company does and your product must not be any good because you don't offer an extended warranty.
1) I took a 4 hr small business seminar with our once upon a time(still on good terms)/friend CPA.
2) I know about the separate bank account...thanks
3) I wanted to do Business set up(LLC,DBA,Logo,IRS #) through Legal Zoom.com (I've worked with them before)Good and Bad(sloooow) results.
4) I've heard/read about the pricing to LOW(must be bad) comments before.thanks
5) I use and(LOVE) OpenSource software...My BOM(Per.Part/Cost)is set up that way and all my letters is with it...I down loaded but have not used GnuCash software (FREE).
6) Will look into "ZenCart".
7) will look into "Pair.com"
8) I joined Pre-Paid Legal to get GOOD rates to draw up a legal form to install FREE Beta test units in homes and the 25% discount to start and the cost to Draft it up still my come up to $500.00. OUCH!!!
9) I set up & buy my Boards from china(OURPCB.com) through PayPal but that's all I know about PayPal.(got some today...LOOKs Great). Cost High NOW..100 CT will be $2.53 a piece (4 x 3) 50 component part count.
10) I have all receipts from the start. The CPA said you can keep 5 yrs worth before officially starting your business and applying them to your Tax's.
11) Setting up a STORE front seems what I need to learn also.
12) Bought a new PC with windows 7 and some TRAINING software for (Windows 7/Office,Window,Windows,Web & Graphics/QuickBooks 2008...Hope it works on this PC/) let the headaches began.
THANKS AGAIN to all that replied...I will be checking back for more/any inputs no matter how small, please let me hear them.
Howard
▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔
I'M STILL LEARNING SO MUCH...BUT STILL KNOW SO LITTLE!!!
hmlittle59
There are several people on the forum who have side-businesses related to selling electronics. There should be lots of great support from here.
Can you tell us more about what you are creating and what you are going to be selling?
-Tim
▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔
Timothy D. Swieter, E.I.
www.brilldea.com - Prop Blade, LED Painter, RGB LEDs, 3.0" 16:9 LCD Composite video display, eProto for SunSPOT, PropNET, PolkaDOT-51
www.tdswieter.com
The following is for anyone in the us.
usgovinfo.about.com/od/moneymatters/a/taxidhowtoget.htm
-dan
▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔
(Former) Caterpillar product support technician
Don't be afraid to say 'no' to a customer.
Don't extend credit to whom credit is due.
Beware of people who lie.
My boss is a salesman and he said salesmen can't be liars.
My good advice is to keep in contact with suppliers and ask them when they are increasing pricing.· That would allow you to buy before a price increase allowing you to have a greater profit margin.
Look for deals and buy in bulk when economical but don't go over your head.· You also want to keep statistics on what you are selling.
You might want to join Meetup.· They are on the web.· I found there is an Ecommerce group on the web in my area.· They might be able to help you in some way whether it is just advice or networking.· You might even be able to trade services.
Talk to your customers and get feedback on your products because this will tell you how to make improvements.
Keep in mind when you are traveling to read signs as there may be shops which could possibly be interested in your product.
If it is a product that could benefit Parallax, you might want to ask one of the staff how you should approach them.
You can print labels on sheet paper UPS and Fed Ex from just signing up online.· There are companies which sell scales which are accepted by UPS and I know we found one for work which was under $100.· But the fact is you don't need Pitney Bowes because you can buy postage online.
If you are buying a product to just sell, you may be qualified for a tax exemption because you aren't using it.· You would have to ask your accountant for help on this because it goes by the laws of different states.
I am interested in business opportunities in the future as I've been thinking of starting my own web store.
·