I've started playing around with a hosted website solution BigCommerce. It looks very reasonably priced and powerful enough to do what I want. And quite simple to use to boot. Fingers crossed it has everything I need (it does the kits that I've desperately been wanting!). I have some skill in this department, but not enough to do it all myself. I'll still need to enlist the help from a web designer to get things sorted. To get the payment facility sorted you need a merchant facility with a bank, and a payment gateway service (eWay, PayPal etc). Once I have the T'c and C's sorted with my legal team, along with the product info and a front page, the bank will review and subsequently approve the merchant facility. I'll get a payment gateway account and then get that connected to BigCommerce. From there I can start taking orders and we're in business (again)!
We're getting serious now - I've just set up a company structure, and will start using that as of next week. Mentally that has been a big milestone for me. I've always wanted to have my own company! It's a real line in the sand too - it marks where a little entrepreneurial venture has turned into a real business. No turning back now, too much time and money is at stake! BAS statements, GST, Tax Invoices - here we come!
I'm also setting up to use Saasu - an online accounting package. The IT geeks call this type of service "SaaS" (Software as a Service) - a subset of Cloud based computing. Hence the name Saasu. Saasu has some pretty nifty features, like Aussie banks account feeds, aswell as the ability to connect to eBay AND BigCommerce through connectors (cloud integrators do this for you). At the end of the day, I can check all my accounting stuff online, no matter where I am. And if I need to share access I can just grant a level of access commensurate with the bookkeeper's/tax agent's requirements. The cool thing about all this is that all of my order data from eBay aswell as from the Webstore will be funneled into Saasu - one place to view everything. Fingers crossed it all works out! I'll keep you all posted on the progress here!
This week was has been a busy one. And really exciting.
On saturday I missed my flight (slept in duhhh) up to the Gold Coast where I was invited to attend an eBay conference and share my story with a bunch of budding eBay entrepreneurs (400 or so). So after getting the next available flight I made it with about an hour to spare, phew. It was a really great exeperience. I really felt like I'd come a long way with the business, after looking out across the room with so many people waiting intently on everything I had to say (probably would have helped if I was holding the mike properly). Afterwards I spent stacks of time telling people about what my experiences had been over the past 12-18 months and hopefully I was able to give people some insight into what's possible with starting an online business through eBay. It really wasn't I stuck around on the sunday aswell - being in that environment was a fantastic boost.
I spent Monday working from my hotel room on the laptop. Damn I missed the dual 21" monitors from home though! still it was good to get away. I had a meeting with my eBay mentor on tuesday for around 2 hours, where we brainstormed my next steps beyond eBay and ways to stay front-of-mind with my customers (newletters, website, blogs). Things are slowly starting to come together... but I'm acutely aware that I'm not out of the woods yet.
I also spent wednesday at a business mentoring event which was awesome. It was good to network with likeminded people - when you're at home in your office you're often by yourself and shut out from all these other fantastic people who are going through similar issues as yourself.
I'll tee up another mentoring call in a month to make sure I'm on track with the internet marketing/blogging/newletter stuff and progressing along (it's easy to get stopped by little technical things or the fear of needing to get it right).
Who knows one day I might write a book about all this! (stay tuned)
K so I've been totally slack and haven't posted anything here since like forever but now I'm back on that horse (thanks D!)
So much has happened since September 2010. I am NOT going back to work anytime soon. YES!
Grand Sale Grand Sale!
I finally launched my first product listings on eBay in last October 2010. Things took off much better than expected. The product I had was meant to be a "way in" to the market, but it's turned out to be much bigger than I thought it would be! I won't go into specifics, but it's practically paying for my living expenses at the moment, however I've going backwards due to education expenses and other lump sum expenses like car rego etc.
eBay Terrorist Tactics
Within the first 2 weeks of entering the market, my biggest competitor (who had most of the market) decided to log in under a different ebay userID and proceeded to purchase two products from me and left me negative feedback and damaging comments all within 10 minutes. You see, I'd spent time on my marketing and listings to the point where I came in and practically took all market share, so he was clearly not a happy chappy. He was downright pissed off. I gotta tell you, eBay support were PATHETIC and WOULDN'T DO SQUAT to help out. All I got was a bunch of canned 'sorry this isn't actually against eBay policy, perhaps you should try approaching the user to change his feedback' responses. Yeah awesome! That's like politely asking a vandal to come and clean up the buckets of paint he's just thrown all around your brand spanking new retail shop! I'm sure he'll be up for that, great idea!!! Thanks customer support guys!
So here I was thinking "great I've spent the good part of 4 months building up a great reputation to have Mr. OMG-I'm-Going-Out-Of-Business rort the system and punch me in the guts". But was I going to sit and take it? No. NFW. There was no bloody chance after all the shit I've been through that that was going to stop me!
To cut a long story short we got the negative feedback reversed, finally by pulling a few strings with my mentors. Phew.
Oh and the good news is we haven't seen or heard from our retail vandal since. Justice is sweet.
Now where you at fool?
Since then, I've added a couple of new products of different sizes, and I'm also doing combination kits as a way of upselling which has been very effective. Just last week I spoke with a new supplier on a product that is related to my current one and one that I can upsell. And I will be dealing with them directly aswell (no middle man, so my margins are kept reasonable, otherwise there would be zero profit in it). Booya
Key learning points:
-Make sure you get your logistics contracts sorted out! I've had many issues with my 3PL, much of it due to their business growing rapidly and their systems not up to scratch. I don't think I could have really predicted these issues until I'd tried them out however. Outsourced logistics brings it's own set of issues and I think this will have to be a separate discussion!
-Work hard on your marketing and sales copy. It has made all the difference. I also include free extras, plenty of information and testimonials. Now that said, if you are selling many, many items it may not be feasible to create 15 page sales letters. This is something I'm going to have to review going forward.
-Be prepared for the competition. If you take market share, your competitors aren't likely to take it lying down. Keep your cool, don't do anything stupid and focus on getting the crap resolved, stat! Fight back with good marketing (I'm not the cheapest in my category!)
Let me get this right, you have a web business but no website?
They aren't cheap OR easy to setup ok! I'm looking at opening up a website so that the customers I've attracted via eBay can be marketed to and directed to purchase from me directly from my website. This will cut out eBay fees, provide me an opportunity to showcase my other products, aswell as market offline directly to customers (as it adds to your credibility to have an eCommerce website, rather than just directly customer to purchase via eBay). But there's like a gazillian more things that need to be taken care of ... so I need to be sure I'm heading in the right direction first...
eBay + Website = More Win
I get emails all the time from customers asking if they can give me their credit card over the phone, or transact via another method. So I'm feeling the urge to get a website set up. I have both business and regular mums and dads purchasing my products so I'll need to cater for both (who knows I might have to split the business up!? ... that's another story altogether).
I'm researching a software platform that will allow me to run a centralised inventory for both my eBay store and website (otherwise you have to start splitting up your stock and managing each separately, which is a COMPLETE NIGHTMARE). It will give me an eCommerce webstore. It will also integrate with my 3PL so I don't need to manually send orders or manually recieve order status updates via email. And it apparently integrates well with MYOB or SaaSu accounting packages. Sounds holygrail-ish ... too good to be true? Research!
One thing I haven't touched much on is the direction of the business. I think I'll tell you about that another day, but for now I'm still not entirely clear on what kind of business I want, how big I want it and what it will look like, what I will sell and who I will sell to. Being unclear on the outcome I want makes decision making (especially expensive ones) problematic. I'm learning more and more that I have SO many options it's crazy, but it's important that those options:
a) make money (generally important if you want to, like, live)
b) are aligned with my own skills and passions (I'm not interested in selling Share Trading books, sorry!)
I wrote this back in September 2010 but never posted it because I'VE BEEN SLACK. But I'm posting anyway as it's a good reminder as to what my state of mind was... I'll follow this on up with an update (SO MUCH has happened).
Things have taken a sligh detour this month. I accidentally stabbed myself in the left palm with a kitchen knife 3 weeks ago, and severed the nerve to my left index finger. Thank god I'm right handed. Yes very very clever I know I've heard it all. So I darted off to hospital, and after much stuffing around (and lots of bills) I went under general the next day and had the nerve sheathing stiched back together. Fingers crossed the nerve grows back (1mm per day) OK, should be fine within 6 months (so they tell me!).
Nerve with bundles of individual nerve fibers and surrounding sheath.
Nerve repair with realignment of bundles.
So then this week just as I was ready to bounce back, I get smashed by the flu (seriously I must have been totured animals in my past life or something). Finally starting to see the end of it... might give the Grand Final a miss.
Now, to be brutally honest I'm feeling a little less confident than when I first started, most likely due to how long everything is taking. The self doubt demon on your shoulder has a nasty propsensity to come out when you least need it. Logically I think this will pass, and probably once I've crossed a few more hurdles like getting the store up and running and the first product listed. Then I'll feel like I've actually made good progress. The first time around has been agonisingly slow however.
Learning points? Plenty.
1. You soon see what you take for granted when something like this happens!
2. Just when you're getting into a rhythm, don't expect it to last so keep going while you still are in the zone.
SO
I've decided on a business name, got the domain name aswell and have NEARLY finished with the sales copy for my first product. The store design is nearly done and I'm almost ready to rock. I'm hanging to get the product on the market. It won't be a big money earner, but a start at least. The idea is, get some products that will consistently bring in money for you. Then look at bigger ticket items. That's the plan.
(I'm being sketchy about the specifics of the business on purpose btw)
Well I'm 30 in 2 weeks! Big milestone there too, man I'm getting old! Don't feel it though!
Milestones (goals) have a sneaky habit of creeping up on you, but only if you're heading in the right direction. If you're struggling, they can seem ages away like you're never going to get there.
I'll give you an example.
I nailed my 100 eBay feedback a couple of weeks ago (gotta remember to crack open that champagne). 12 months ago that was a BIG milestone. Almost impossible. For months I struggled with it. Sometimes you need to listen to that gut instinct on how to do something and follow it.
So I did, I sold iPhone accessories and away we went. When I achieved it, it seemed like nothing too special.
Great Tim so what?
Basically I've learned the purpose of having milestones boils down to this:
1. Chipping away at a goal will get you closer bit by bit. With planning, and the end in mind you can get there. 2. You'll develop the confidence in your own abilities to continue in the direction your headed and to make more goals.
Success Consciousness
The other day I was listening to an AFL coach talking about the team needing to develop a winning culture, especially after hanging around the bottom of the ladder for so long. Not a week goes by without an AFL coach and a cliche , but it's true that success breeds success. Even in Think and Grow Rich, Napolean Hill talks about the need to become success conscious.
Something that I've learned of the past few months since I left my job:
The more I challenge myself, the more I find it easier to put myself out of my comfort zone. I've been meeting with suppliers for a new product I've found that is in big demand. I really know nothing about this product or industry, but I'm out there trying to make it work.
If you're intentions are genuine and you are honest about your business relationships, then people are often happy to help you out. I've developed some very helpful relationships that are allowing me to factor in a healthy profit margin.
Have faith in your mentors and the systems. By the way if you don't have a mentor then you're making it much harder for yourself. They're worth their weight in gold.
It's always a good idea to listen to those who know how to do something better than you.
On another note, here's something I've been learning more about recently:
The Rules To Making Bucketloads Of Cash Selling Stuff On The Internet
OK I made that title up, but seriously I'm applying these rules as we speak. This applies to selling products that you can't make yourself
Rule #1: Follow All The Rules In Sequence. No Joke, this is VERY important!
Rule #2: Sell What Others Want To Buy (demand)
So I've found a product that is selling well. I've spoken with international suppliers, but for now the local suppliers are the best bet.
I have no expertise or real experience with this product. All I know is that stacks of people want it, so I'm trying to source it and sell it. As Brendan Nichols says, the most important thing a hotdog stand owner needs is a starving crowd.
Rule #3: Source (or Make) The Exact Same Product For The Cheapest Price Possible
Of course you need to weigh up "cheap" vs "quality", but at the end of the day there needs to be a profit margin or there's no point. I've weighed up importing vs local manufacturers and decided (for now) to source locally.
Rule #4: Determine If After All Your Costs There's A Profit.
This is where I'm at right now. I'm weighing up different shipping methods and costs. I'm speaking with multiple shipping and fulfilment companies. Don't forget, your job as a business owner is to remove yourself from the business. It's part of the plan. Rule #5: Make'em an offer they can't refuse (Sales Copy)
I made the mistake getting ahead of myself starting to write sales copy. I've canned this until I know for absolute certainty all the costs involved.
You could add bit's n pieces to the rules, but if you break any of them you're gonna have a hard(er) time making money.
I've recently been making a lot more time for hanging out and talking to other entrepreneurs, all in various different stages of business and with differing experience and results. Being around like minded people is critical.
I was speaking with a good friend of my AJ who is a little younger than me, but has built a number of web businesses (together with his brother and business partners) and is on a path to serious success (how dare he). Maybe we can talk more about AJ's background later but lets just say he could write a book about his experiences and inspire a whole generation of others as to what is achievable in business.
As someone who is just starting out in business, he had some interesting points I've remembered and thought I'd impart. I'll paraphrase this as best I can. You'll get the general gist anyway.
I'm currently researching a good product to sell, and this process could take a few more weeks until I've found something that meets my requirements. I have financial goals for the next 12 months (and 2,3,4,5 10, 20 years) and I'm currently working on a few different options on how I can achieve those goals. One thing I must be careful with is being too overly analytical and trying to plan out the future.
Analysis Paralysis
AJ made the point that Analysis Paralysis can give you the impression
that you are getting somewhere, where in fact what you really need to do
is take some form of action. Perfectionism also has a part to play
here as you search for "that one thing" whether it be a great product,
or the best time to quit your job, or the best business to get into or
whatever. Having a plan is important (and downright essential), but
mapping out exactly how you would like things to go is unrealistic and
an attempt to simplify/control your future.
Businesses don't exist in a vacuum, they exist in the real world and for the purposes of this discusison they could be called 'organic'. Unexpected situations and opportunities present themselves that cannot be foreseen, and will inevitably create changes to your business that you coudn't have imagined in years of planning. It's just simply unrealistic to plan out how all the steps are going to unfold. Be mindful of that.
If you're optimistic then you might think unforeseen circumstances could bring great and unforeseen opportunities. Those who are more guarded may prefer to err on the side of caution, and not take action for fear of loss.
If there's one thing I took away from our discussion, it's that you really need to focus on doing something, getting active, even if it means making a mistake. We're all going to make them. It's a necessary part of learning. I'm not saying be gung-ho and just go out and do anything, but the point that AJ tried to impart is you won't be able to plan out everything perfectly.
All decisions are made on insufficient evidence. Rita May Brown
Baby Steps
The key takeaway here is to start small and take baby steps. Do
something. Don't do nothing and succumb to analysis paralysis. Don't
try to plan out everything before you get started. Your plan will
inevitably change anyway!
I currently have no job (my resume isn't even up to date)
I've had no income since I quit my job 4 weeks ago
I still have regular overheads: rent, bills, phone, health
insurance, gym, internet, food, etc.
I left a career in IT and resigned from a top notch industry leader after 5 1/2 years
I left behind a healthy 6 figure income
So we're off to a good start.
Are you crazy? What the hell are you doing?
I'm building an eBay based business
Two weeks ago I started selling iPhone accessories and I'm making a loss. Awesome.
Unfulfilled Potential
Most men lead lives of quiet desperation and go to
the grave with the song still in them.
Henry David Thoreau
Changing direction and making big life decisions is bloody tough! If I had to choose one reason why I quit a job with a 6 figure income with an industry leader and a career path in IT it would be this: a burning NEED to do something bigger with my life. Over the past few years I've wanted greater control over my future, my time and my finances. This isn't a decision that I made overnight, but has been well thought through (and agonised over). For me, something didn't sit right and I needed to trust my gut
instinct and make a change.
At the end of the day you need to architect your future for yourself,
know what you want, seek out those who can help you and support you, and
take the baby steps to get there. Simple, yes. Easy, No.
A few key points:
This has been an absolutely
personal decision.
It has to be a personal decision in my opinion, if you are to really make a go of things.
I have nothing less than complete and absolute respect for my old colleagues and the company I
worked for.
I have a number of friends who are more than happy with
their careers, do a great job and that suits them perfectly.
Good is the enemy of great ... Few people attain great lives, in large
part because it is just so easy
to settle for a good life
Jim Collins, author of "Good to Great"
It would be a privilege if I could speak from experience and show others that in life we do in fact have options. I want a great life. Of course everyone wants one, but getting there is a battle! Who knows, maybe I will get there, maybe I won't. Four weeks in and I can see I'm making progress and I'm yet to regret my decision (stay tuned).
Go Ahead, Profit From My Mistakes
I started this blog because I thought others who are interested in pursuing a life different to the one they're now leading, could maybe learn a thing or two from me as I journey along. Better my mistakes than yours! I'd probably forget all the details, issues, victories and ups and downs aswell, so it will be a great journal. If resigning from (well) paid employment and a career to starting my own business was a difficult decision for me, I'm sure there must be one or two others out there thinking the same thing. It would be awesome if I could speak from experience and show others how it can be done.
So ... whats the plan?
I'm building a business on eBay. Why eBay? Well, I can leverage my IT knowledge since I've played with computers since I was about 6 (tick), it allows me to work from home (tick), the overheads are marginal compared to a bricks 'n' mortar business (tick, tick), there are so many people buying on eBay (and growing), and still a relative low number of sellers (tick), there's a zillion categories and niches you can play into (tick), and eventually you can automate a lot of the functions to free up your time for other things you'd like to do (tick, tick, tick).
I'm being mentored by Australia's best eBay Education specialists (no not free) as from my experience if you're going to learn how to do something well you want to learn from those who are experts and have been there done that. Very important!
I'm currently researching a good niche that can support me and provide a foundation for reaching my financial, and in turn life goals. I've been researching for about one week now and I'm basically doing this full-time. It could take a few weeks before I finally find what I'm looking for. Fun and games!
I'll be back to give updates on how I'm going, and any other useful tidbits I'd think you can make use of.
Rule #4: Determine If After All Your Costs There's A Profit.