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Young Entrepreneur Forums » General Internet » E-Commerce » Advice Please: Don't Know How to Structure a Deal for Win-Win



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Old 03-18-2008, 06:35 PM   #1 (permalink)
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Advice Please: Don't Know How to Structure a Deal for Win-Win

There is a medium size retailer invite our company to be their partner. They are selling refurbished computer equipments and some popular electronics, and they are pretty well established and doing a pretty good job. They like us because we know the internet technology and a bit of online marketing. Ideally, it is an extremely good opportunity for us because they have a good supply of inventory, good items to sell online, a long email list of target customer (10000+), a good post sales operation, and a good repair team. They would like us to grow the online business to 2 million dollar in 3 years. Nevertheless, they can offer us a profit of up to 5% of their online revenue because it is not a very high profit margin industry (It is about 20% for them). It means that it is only $100,000. If we don't do anything and gain this profit, it will be so great. However, in order to grow up to $2 million business, we might need to invest more than $100,000. I don't want to miss this opportunity because they are an idea partner for us, but at the same time I don't know how to grow an online business so much without certain investment. I am stuck!

Dear smart entrepreneur, Is there any creative idea to make our deal successful? I really need your advice. Thank you thank you!

Marcelo
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