Questions about start up capitol.

[namewill]

Last year I started a work from home side internet business making custom replacement parts for musicians. I started this to be basically a part-time work from home business for side money. My products have had a 100% success rating and have now been the talk of the world wide web. We are now on page 1 of the Google search engines for my product with others who have been in business for many years. I have over 20,000 per month visitors to my web site. With over 10,000 per month being new visitors. All with zero money spent on advertising. It has been by word of mouth only. Really exciting to me to say the least.

But here's my problem. I can't take on all the customers since I don't have the capitol to buy the parts I need to supply the demand. If I did, the wait time for my customers would be way too long and it would be a negative other than a positive on the world wide web & forums.

I did the numbers and I am losing about $50K a month in net profits since I don't have stock of parts on hand for immediate sales. I turn way a lot of customers a month.

I don't have any rich family members and really no real collateral for a bank loan. So looking for investor I think would be the only way or is it? Will a bank loan on the numbers off my web site? I am really kind of frustrated and really need to figure out something fast to capitalize on the buzz of my products on the world wide web.

Thanks in advance for any ideas or advice.

[namewill]

You can see by these numbers why I am feeling a little frustrated. All these numbers are directly from my backstage area of my online site. With all the repeats and new customers I need to either crap of get off the pot with something soon I think.

1/20/2008 Sunday 881
1/21/2008 Monday 820
1/22/2008 Tuesday 935
1/23/2008 Wednesday 945
1/24/2008 Thursday 785
1/25/2008 Friday 698
1/26/2008 Saturday 838
1/27/2008 Sunday 933

These are the "Unique" vistors numbers... meaning new customers.

1/20/2008 Sunday 292
1/21/2008 Monday 326
1/22/2008 Tuesday 422
1/23/2008 Wednesday 328
1/24/2008 Thursday 346
1/25/2008 Friday 311
1/26/2008 Saturday 402
1/27/2008 Sunday 327

[pentupentropy]

try the site advertsied on the forum page... PartnerUp - Find Business Partners, Commercial Real Estate, and Business Resources

[kiddoso]

namewill, I sent you a PM with some questions.

~ Simon

[ltressel]

Namewill-

I'm in Cali. Tell me more about your business. Sending you a PM. Perhaps I can help.


LT

[Cole Taylor]

First thing I'd do is talk to your suppliers about extending you credit.

[namewill]

namewill, I sent you a PM with some questions.

~ Simon

Thank you Simon, I sent you a PM back!

[namewill]

Namewill-

I'm in Cali. Tell me more about your business. Sending you a PM. Perhaps I can help.


LT

Hello LT, I sent you some information. Thank you!

[namewill]

First thing I'd do is talk to your suppliers about extending you credit.

Unfortunately, the supplier's I use do not do credit on the majority of the parts I need when I am not mass ordering from them. The majority of them are "cash &carry" for small orders. Once this business expands and grows I am sure that it can be something we can address in the future but until I do orders that are in the bigger dollars amount. It just giving money away by doing it on a credit charge account.

[cutebeast]

I see 2 problem you need to solve and here are something you might want to give it a thought

1. Financial - term payment to supplier, bank loan, creditcard or overdraft or even local LC will pretty much solve this issue if you are talking about a sum around 20k

2. Skill staff - This is the part you might really want to plan and look into first before the above step. Start preparing a proper guide & flow and place them into a handbook or SOP so you are able to hire any staff and train them fast to do those job for you.

Aside from the 2 thing mention, don't believed all your unique visitor will actually make those purchases. You can actually test this out by opening up a pre order period just for 1 or 2 day at least to see how many % of your total unique visitor that will actually convert to customer so you can then plan for #2 and #1.

[namewill]

I see 2 problem you need to solve and here are something you might want to give it a thought.

thank you for your time.

1. Financial - term payment to supplier, bank loan, creditcard or overdraft or even local LC will pretty much solve this issue if you are talking about a sum around 20k.

Yes agree, I have been working on a term schedule for this.

2. Skill staff - This is the part you might really want to plan and look into first before the above step. Start preparing a proper guide & flow and place them into a handbook or SOP so you are able to hire any staff and train them fast to do those job for you..

I have a training manual on assemblies already. I do have 2 gentleman who have helped me from time to time who know what to do here and are ready to start with me full time when I get the capitol to take this on to the next level.

Aside from the 2 thing mention, don't believed all your unique visitor will actually make those purchases. You can actually test this out by opening up a pre order period just for 1 or 2 day at least to see how many % of your total unique visitor that will actually convert to customer so you can then plan for #2 and #1.

As for the unique visitors, I actually tested it out a couple of months ago and opened it up for full orders and had to shut it down after it exceeded way past what I could deliver in time. I had to issue quit a few refunds. I get about 75-300 emails daily from to how to order when I shut down the ordering forms online when I have reached my max to people wanting to get questions answered as to which parts I recomend for them to order. This little business has reached world wide and I will be honest, I never expected it to mushroom like it has so fast.