Re: Low Budget Business Start-up -- Small Businesses Discussion Forum

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Subject: Re: Low Budget Business Start-up

Author:
Dennis S. Vogel

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Date Posted: 21:52:08 05/26/02 Sun
In reply to: Jen 's message, "Low Budget Business Start-up" on 21:39:44 05/26/02 Sun

Hi Jen,

It depends on the business category.
There are some cases where somebody could build on the overflow of a current business or with a different specialty than a current business.

Example 1- A mechanic (Warren) got my attention & won my trust by first offering a special price on a lube & oil change.
He got a lot of responses from that offer (two from me).
When I needed an automotive computer replaced, he didn't have the equipment for that kind of system. He got my permission to use his tow truck to bring my car to Gary who had a home-based business.
The equipment would've costed Warren quite a bit & he may not have been able to use it much. But since Gary specialized in that kind of work, it was worthwhile for him to have the equipment.

Example 1a- If Warren had the equipment, but was already too busy, he could loan his tow truck to Gary to move my car. Then Gary could work on it.

NOTE- Gary didn't have a booming business, but the arrangement with Warren helped both of them-
1) Warren already invested money in a location & marketing. Gary was able to build a home-based business by leveraging Warren's investments.
2) Sometimes marketing seems to work "too well." Then a business owner will get a lot of customers without the ability to give them all quick service.
Warren could tell Gary, "To share in my business, I'll charge you $30 for every customer you get from me." Then Gary would get risk-free business (it doesn't cost him anything unless he gets it). Warren can maintain his marketing efforts without taking a chance on losing momentum if he stops it or cuts back. Since Gary is dependable, Warren feels comfortable referring people to Gary. This way, he (with help from Gary) can serve whomever responds to his offers.

Example 2- Store "A" can't possibly have the space required to sell every kind of tool, so the owner works out a venture with the owner of Store "B."
So, I go to Store "A" and ask for a right-handed wrench with a left-hand grip.8-}
Store "A" owner asks, "Do you need it today? If you do, I can get but it'll cost a little more. If I can include it with another order I can afford to charge less."
Scenario 1- If I do need it today, he can send somebody immediately to "B" to get it & deliver it to me. The delivery adds value & his employee will be out in the company truck anyway.

Scenario 2- If I can wait, he can get it from "B" later & call me when he has it.

Yes, there are other things to consider before making arrangements like these, but those would take up more space.

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