Diary of Opening A New Business

[Bigguns50]

The problem is after the newness wears off it is just the same ole same ole,

I've experienced this feeling with every single job I've ever had. With me...it's like...ok, this is challenging ! I work hard, get really good at it, and suddenly...ok...I'm bored now. What's next ?

The positive side...always looking for challenges.

 

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[theBiz]

Seems like some things never change...

 

[JEdwards]

Seems like some things never change...

Great Little Video...

 

[jpa0827]

Seems like some things never change...

Man that clip pretty much sums up a lot of things we hear on this forum...

 

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[Oztrepreneur]

There is opportunity everywhere. Every single thing bought or sold is an opportunity to make money.

Thanks Jack. Agreed there seems to be opportunity there, I just need to figure out angles to get a foot into these markets.

Hope your business is still exceeding expectations. Appreciate all your answers too.

 

[jpa0827]

There is opportunity everywhere. Every single thing bought or sold is an opportunity to make money. I bet there is a guy right now somewhere that has made 100 million off of selling chopstick's to restaurants. He is sitting on a beach somewhere, probably eating with a fork and I even bet his friends call him something like Chopstick George.

Did he invent Chopsticks,nope, He just figured that people somewhere needed chopsticks and said to himself I can get people those.

I was thinking about this comment for a good portion of the day. I can see how buying and selling products is a great way to break into nearly any industry. I know some of my problem is probably mindset, but when I think about distribution of products I think to myself: I need a lot of products (variety) to sell in order to be able to start. Would a restaurant buy chopsticks from me if that was the only thing I sell? This thought enters my stubborn brain all of the time and is a huge reason for me not starting. I immediately think of all the distributors (competition) who supply restaurants, retail stores, businesses...etc. with a variety of products. These distributors are all one stop shops.

Am I just being stupid thinking this way? I really can't tell if I am being realistic, or I am just misinformed.

Anyone get what I am saying? Any thoughts on this?

 

[Oztrepreneur]

J

I was thinking about this comment for a good portion of the day. I can see how buying and selling products is a great way to break into nearly any industry. I know some of my problem is probably mindset, but when I think about distribution of products I think to myself: I need a lot of products (variety) to sell in order to be able to start. Would a restaurant buy chopsticks from me if that was the only thing I sell? This thought enters my stubborn brain all of the time and is a huge reason for me not starting. I immediately think of all the distributors (competition) who supply restaurants, retail stores, businesses...etc. with a variety of products. These distributors are all one stop shops.

Am I just being stupid thinking this way? I really can't tell if I am being realistic, or I am just misinformed.

Anyone get what I am saying? Any thoughts on this?

I get what you are saying. In my mind I face the same and other barriers, although I suspect these are very real and strong barriers. Not insurmountable, but large enough without a large initial investment.

My previous example in the post was engine coolant. Mechanics go through many many litres a year, thousands of mechanics across the country. I could supply it cheaper more than likely. Why would they use me, when they could go to a large distributor and get all their filters, gaskets, tools etc etc too.

Chopsticks...yes you could sell thousands (I'm in Australia, 1/12th the population of the US!), the issue is, they are already being supplied, so why change? To save a couple of hundred a year? Unlikely. I think these sorts of items are highly commodotized so that in itself is a massive barrier (glass half empty?)

How do you break into these boring supply type industries?! Who do you ask? What do you ask? It really intrigues me as there are no doubt many many millionaires supplying labels, plastic cups, timber flooring, bearings, gaskets, cleaning chemicals, conveyor belt parts, handrails....you get the point!

 

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[Chitown]

@JackEdwards,

I sat all day -- with a nasty sinus infection -- and finished this entire thread. Well done, my man. Well done. Speed+

 

[jpa0827]

J


I get what you are saying. In my mind I face the same and other barriers, although I suspect these are very real and strong barriers. Not insurmountable, but large enough without a large initial investment.

My previous example in the post was engine coolant. Mechanics go through many many litres a year, thousands of mechanics across the country. I could supply it cheaper more than likely. Why would they use me, when they could go to a large distributor and get all their filters, gaskets, tools etc etc too.

Chopsticks...yes you could sell thousands (I'm in Australia, 1/12th the population of the US!), the issue is, they are already being supplied, so why change? To save a couple of hundred a year? Unlikely. I think these sorts of items are highly commodotized so that in itself is a massive barrier (glass half empty?)

How do you break into these boring supply type industries?! Who do you ask? What do you ask? It really intrigues me as there are no doubt many many millionaires supplying labels, plastic cups, timber flooring, bearings, gaskets, cleaning chemicals, conveyor belt parts, handrails....you get the point!

Thats exactly where I am stuck. I'm not looking for step by step instructions, heck they are basicay in this thread anyway.... Just trying to find clarity on the issues in the above comments.

 

[LibertyForMe]

If what I have learned from Jack is correct, it is just a big puzzle. I get the vibe that there is definitely a way to make anything work, you just have to find the angle.

That is the biggest thing I have learned from @JackEdwards . You guys are right, you can't just start selling chopsticks. There is no differentiation. You gotta find an angle where all parties win. I think that is what Jack is just really good at.

I have been doing lots of research into how people solve problems, and an overarching trend is that you MUST clearly define the problem. So in the chopstick example the problem is not "I want to sell chopsticks but the market is crowded." That is a statement. A problem is a clear goal and the obstacles that are preventing movement toward that. The right problem would be "I want to sell chopsticks to restaurant distributors in the mid-west, but I have no name recognition or brand differentiation so they don't need me."

Now, you have an obstacle to work on overcoming. What can we do to A: Increase name recognition, B: increase brand differentiation, or C: Make them need me.

Then you just keep drilling down: "Ok, for C, so what do they need? What could I see them needing that they haven't thought of yet?"

I think that is why Jack doesn't answer our lame questions, he is trying to make us think through the process.

 

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[Lakeview]

How do you break into these boring supply type industries?! Who do you ask? What do you ask?

Who do you ask? What do you ask?: End user = Who uses it? What do they like about it? How could it be improved? ..... list goes on.

Who do you ask? What do you ask?: Reseller = What's missing in ? product? Does it move for you? Why or why not? Pricing, availability, profitability? How can you help there phone ring more? How can you get people to their store?

Kind of reminds you of a 4 year old right? They are not afraid to ask nor are they afraid of what people may think. They just ask. You might be amazed at how few questions it actually takes to get someone to talk.

 

[Lakeview]

I think that is why Jack doesn't answer our lame questions, he is trying to make us think through the process.

I must confess, when I met with Jack, I had thoroughly thought things through. In fact, I thought things to death! I knew the plan and how it was all going to work. It was something that was way overcomplicated and for that reason, would take to long to monetize. Paraphrasing Jacks words to me, "if you can't monetize it any quicker than that, you will loose interest and give up." Sometimes we make an idea to complicated.

We hear it time and time again on this forum. Try to sell something, learn from it, adjust and move forward or move to something else.

 

[jpa0827]

I must confess, when I met with Jack, I had thoroughly thought things through. In fact, I thought things to death! I knew the plan and how it was all going to work. It was something that was way overcomplicated and for that reason, would take to long to monetize. Paraphrasing Jacks words to me, "if you can't monetize it any quicker than that, you will loose interest and give up." Sometimes we make an idea to complicated.

We hear it time and time again on this forum. Try to sell something, learn from it, adjust and move forward or move to something else.

That makes sense. It's clear how quick Jack became profitable in his current business on this thread. I'm sure that helps create more focus long term.

 

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[TheSilverSpoon]

I get what you are saying. In my mind I face the same and other barriers, although I suspect these are very real and strong barriers. Not insurmountable, but large enough without a large initial investment.

Trying to hit such a broad market at the very beginning of your business will be tough. But, if you can drill down on a mini-niche and serve that group better than your competition you now have an advantage. The number of widgets that need to be stocked, supplied, and managed dramatically decreases. Warehouse needs decrease, capital in inventory dramatically decreases, and your inventory turnover rate will be higher. You can give your customers better customer service, faster delivery, etc to compensate for your company's newness in the marketplace.

After you have that running smoothly THEN you can start to branch out into other widgets. Base the widget additions entirely upon what your existing customers are asking for. Now instead of trying to just guess what everyone would want, you have a few bread and butter products supplemented with products that your customers are hungry for. As customer base grows, so will their needs. Your company will grow and add more widgets as this happens.

Chopsticks...yes you could sell thousands (I'm in Australia, 1/12th the population of the US!), the issue is, they are already being supplied, so why change? To save a couple of hundred a year? Unlikely. I think these sorts of items are highly commodotized so that in itself is a massive barrier (glass half empty?)

With almost all highly commoditized products comes a slew of highly profitable accessories and services.

Vig was saying in his thread how Walmart had a TV special they ran for Black Friday. The TV itself looked like it was a loss leader, with little, if any, profit being made on the sale of the TV itself. But with the sale of the TV they could push a wall mount. Wall mounts cost <$9 per unit with a sales price ranging all the way up to $100. You can bet the salesman were pushing extended warranties too. 90%+ margins in those. And then the buyer needs all the necessary cables to go with their new TV. And cables are a very high margin item.

Cars are another example of this. In my area we have a few local dealers selling for $1000 under invoice. You pay $1000 less for it than what they paid for it. So hows that work? If the dealer sells the car within a specific time period (usually 90 days) they get a 3% kickback from the dealer, usually ~$650. The documentation fee is ~$390. This brings them to breakeven on the car itself. Now they'll push the financing, extended warranties, add ons, and service plans on you. All are relatively high margin items or services.

These places don't make their profit on the sale of the product itself. In fact they barely break even on it. Let me repeat. They barely break even on some products. They make the profit on the accessories and services that surround that product. In a commoditized market you have to think what service or accessories you can provide to both differentiate yourself AND provide enough value for someone to switch to you.

 

[JEdwards]

Little Update, As you get into an industry you start to figure out what is going wrong and what can help,

I have stumbled onto a really big business that no one out there is doing. Same industry I am in, etc etc.

I already have the customers, just now need to fit them into this deal.

This is going to be a big deal.

Now I have 5000 calls to make.

 

[jpa0827]

Little Update, As you get into an industry you start to figure out what is going wrong and what can help,

I have stumbled onto a really big business that no one out there is doing. Same industry I am in, etc etc.

I already have the customers, just now need to fit them into this deal.

This is going to be a big deal.

Now I have 5000 calls to make.

Diary of opening a business part 2. Go gettem Jack!!!

 

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[oddball]

Little Update, As you get into an industry you start to figure out what is going wrong and what can help,

I have stumbled onto a really big business that no one out there is doing. Same industry I am in, etc etc.

I already have the customers, just now need to fit them into this deal.

This is going to be a big deal.

Now I have 5000 calls to make.

Is this what you were talking to me about when we had lunch? or something new since then?

 

[JEdwards]

Is this what you were talking to me about when we had lunch? or something new since then?

Nope that's it. It is going to be huge.

Well One of the things I told you. Not the one where we make a linkedin/facebook for little people. The other one.

 

[HarryR]

I can't give enough likes @JackEdwards .

I think I finally understand what it means for an entrepreneur to be creative. It doesn't just mean coming up with a new product or idea, or finding someone to finance product development or marketing. It really means breaking the entire business down and finding pieces you can change to navigate around your constraints to the end goal. Angles...

 

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[oddball]

Nope that's it. It is going to be huge.

Well One of the things I told you. Not the one where we make a linkedin/facebook for little people. The other one.

Awesome, good to hear. If you get a break from those calls we'll have to grab lunch.

 

[Arnold321]

That little cocktail video, and what Z and Jack said sums up the meaning of pretty much all of the 24 pages in this thread.

 

[benh]

Jack just wanted to say thanks for the awesome thread. I've seen so many people in here ask questions and they seem to expect you to tell them everything when the reality is really simple. Just sell something. Everyone gets caught up in the details or is too afraid to start. What happens when you do go out and sell is you end up with a Ferrari and a pretty great life Working right now on getting out of the slowlane and every day I find more gold on this website that shows me I know how to make the millions I'm just not doing it.

 

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[JEdwards]

Hey Everyone, On the 28th of February I will be hosting a conference call on the INSIDERS forum on how to figure out angles of opening a specific business, so If you like my thread and this forum, please sign up to be an INSIDERS and be part of the call.

You might learn something or who knows you might learn nothing. Vegas odds right now are at 50/50.

 

[benh]

Hey Everyone, On the 28th of February I will be hosting a conference call on the INSIDERS forum on how to figure out angles of opening a specific business, so If you like my thread and this forum, please sign up to be an INSIDERS and be part of the call.

You might learn something or who knows you might learn nothing. Vegas odds right now are at 50/50.

Thanks Jack I'll be there!

 

[smartyoungman]

I've read through the entire thread and I have to say that I am amazed.

It's great to get to see how its really done.

 

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[gkouro]

JackEdwards and the rest in this thread many thanks. You have helped me make my plan solid for the commercial catering equipment reseller business I want to go in. Although I am not in the states I still can make money as long as I do it better than the rest. I am starting with zero money. Just a website my uncle has already and it's not up to today standards, a small office, a phone (with unlimited landline call time!), a fax-printer and many many catalogues of wholesalers and manufacturers. and me of course.
Jack you have set many goals along this journey though these were always changing and you didn't seem to bother if these were reached or not in the timeframe set, so I see no point in having them in the back of my head.
Thanks again!

 

[goo_br]

Jack , thank you so much. I have just spent 3h reading this whole thread. One of the best time investments I could have made.
Many, many takeaways. One of the most important for me is the fact that there are so many opportunities in "old, boring" markets.

I am currently feeling so frustraded by having set aside time to invest in Fastlane but not having found an idea that excites me enought to take action. I had never thought of taking and old industry and doing something a little more different and better, and attaching a huge goal to it. DOES excite me after reading this story.

Thanks for sharing.

 

[Oztrepreneur]

Great thread this, would hate to see the wisdom provided by jack die a natural death....any updates jack?

 

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[Arnold321]

Jack, thanks for your replies, and share of wisdom.
So i guess that your current business is going to be put aside a little bit when you will start that new huge idea, or they are connected in a some kind of way?

 

[JEdwards]

Jack, thanks for your replies, and share of wisdom.
So i guess that your current business is going to be put aside a little bit when you will start that new huge idea, or they are connected in a some kind of way?

Same business, just unfulfilled side, same industry, same customers. So this is an add on to what I currently do. Thing is it is really just an uncovered market and I can help.