Now you think this whole experiment has a catch. It is not about how much it costs you to start, but how much money you really have, how much you are able to get and how far you are willing to invest in the business, how far you are willing to go. You think that is the main difference between an entrepreneur and an amateur dressed as an entrepreneur trying to set up an online store. For setting up an online business in dubai this is important.
Betting on bringing quality products
You are already talking about bringing American orders. Bringing you a minimum order of 600 units, for example, from the pen of the American supplier, costs you 7,979.24 dollars including customs it costs 8,400 dollars plus 1,335.17 dollars of 21% VAT, plus 286.11 dollars of 4.5% of customs that you estimate for this type of product. Come on, this is more serious than bringing you 100 bolis from China for 152 dollars.
What accounts should be cast?
Should I make you a financial plan? Developing the treasury plan helps you understand that you need to generate liquidity with another source of income that does not depend exclusively on the online store.
After preparing your two-year treasury plan, you realize that the most negative prospects are sad and discouraging, but that you have a chance. Something more is needed. You already know that the calculations only take into account three products the only ones for which have real budgets and conditions, but it helps you to get an idea of what scenario you are going to find.
Sell to schools
You realize that you are going to need an additional line of liquidity. It occurs to you to address the personalization of tablets and mobile devices in elite schools. Like the school and university rings in the United States, the tablets in Spain: with the logo and the alma mater maybe also for teachers.
You start accounting for the personalization of tablets and mobile devices in schools. You are looking for lists of elite schools in Madrid somewhere you have to start. You are looking for private centers with better grades. Your school, by the way, is in the top 10. It could be a good starting point. If someone you know follows, the same will even receive you. You calculate a cheaper price, a reduction of four dollars on your margin in exchange for volume and the accounts improve.
Fine-tuning with invoicing
Fine-tuning with invoicing is, along with a good market study, the most difficult part of a business plan. To try to get it right, you have to take into account a maximum: the invoicing of your competition via the Mercantile Registry and companies that sell company reports; and a minimum: the breakeven point how much do you have to sell of each product to cover all your costs, fixed and variable. In the first part, the maximum, you do not arrive on time, so you limit yourself to calculating the amounts you have to sell to cover costs. This analysis, halfway between the economic-financial analysis and the market study, also makes you see where the sector is going.
What happens to your competition? Are they going up? Are they going down? You are interested in seeing that not only to make billing forecasts but also to measure the sector in which you want to get involved.