HMRITM

2020 11-27

Dropshipping: A Business Idea For Entrepreneurs

You have decided to launch an online store and join the e-commerce revolution . The first questions you need to answer are about your product: what you will sell, where you will get it and how you will present it to customers. Some very important things that entrepreneurs need to keep in mind are:

  • supply method
  • inventory management
  • order processing
  • delivery processes

Dropshipping may sound like a magic bullet to make a profit online, but don’t be fooled. Like anything else, there are pros and cons to this online business idea.

Advantages of dropshipping:

  1. No start-up capital. If you are a beginner, dropshipping allows you to launch an online store without investing a lot of money. Traditional distributors need to buy and store inventory to sell to consumers. But if you use a dropshipper , you can offer a complete catalog of products with few heads.
  2. Less difficulty involved. As mentioned above, you don’t have to deal with available inventory, which means you don’t have to deal with packaging or shipping. This allows you to focus your time and energy on marketing and develop your business idea.
  3. You can easily expand your offers. If you want to expand your offerings, dropshipping is a great way to test new products with your audience. This will allow you to really see if they are right for the market, without having to invest in large amounts of expensive inventory beforehand.

Disadvantages of dropshipping:

  1. Logistics management. Shipping logistics can be difficult to manage as your business expands. If your shipping provider relies on multiple deposits, this will be even more of a challenge. Poor logistics management can lead to an unpleasant customer experience due to improper tracking numbers, incorrect addresses and transportation delays.
  2. No control over the packaging. If you are an exclusive online store, the first physical interaction you have with your customers is when they open their purchase. But, if you make a shipment, give up control over the packaging. This means that there is no special packaging or nice thank you letters that can make your store stand out. In this case, the most famous senders will allow at least the sending of private labels with personalized invoicing and package packages.
  3. Tight profit margins. It is very difficult for small businesses to compete on price, and the nature of the shipment means that you do not sell a single product. Make sure you are ready to invest in something that will differentiate your store, such as excellent educational resources, strong writing or building a unique niche market.

2020 11-26

About Success And Failure In Business

Starting a business can be the key to financial independence or the road to ruin. Statistically, about 90 percent of new businesses will eventually close their doors forever. Ensuring that your company will be successful means avoiding common business pitfalls.

Success in business depends on its management. Business failure can easily occur when fairly common mistakes are made such as:

Underestimating start-up costs

One of the most common mistakes entrepreneurs make is to underestimate how much money they invest in setting up a business. Some start-up costs are predictable, such as the cost of a new building or renting equipment. But other costs are less easy to anticipate, and companies that fail to take these surprises into account can find themselves with cash even when they need it most. Entrepreneurs tend to underestimate both start-up costs and costs associated with customer acquisition and maintenance. When costs are underestimated, something as simple as breaking down equipment could fail in business. To combat this common mistake, experts recommend budgeting more for start-up costs than you think you will need. This can lead the business on the road to business success.

Addiction 

The resignation of a key employee or a disagreement with a business partner can leave the company in a tight spot, unless the business owner has taken the time to learn all aspects of the business. Relying too much on certain employees / partners can be a big mistake, and one that could even lead to business failure. Regardless of the nature of the business, it is essential for the owner to understand the variety of jobs and functions within the organization. This will allow the contractor to intervene if necessary.

Hiring the wrong people

For clients, the people you hire are the business, and hiring the wrong people can bring business success or failure. Once the business wins new contracts and takes on new projects, the company may need to get up quickly and hire new people. The people you choose to work for the company must identify with its values ​​because that is the only way they can represent it. Success in business depends a lot on the people who work in that company. We all know the word “man sanctifies the place.” In this case, the man is the one on whom the success or failure of a business depends because any business is made up of people, after all.