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Fully entrepreneur now. Thanks @MJ DeMarco , much more fun and more freedom. Wife is focused on jewelry reseller biz we created and I'm focused on the family potato wholesale biz. I'm questioning myself if is worth to scale the current potato biz or if I create a new healthy potato brand. Rationale:
Pros of the potato biz
Cons
What do you guys think?
Pros of the potato biz
- Scale through volume. We are the main seller of our town. Most supermarkets buy from us. Not incredible money but good money
- Good entry barriers. This shit is hard because of the working times and price volatility. Also, zero sexy (reminded me of @Johnny boy biz). Because of that, most people in this market aren't that smart. Easier to outcompete
- Lot's of low hanging fruits on process improvement. It can be way easier and less stressfull. We are sooo far diminishing returns on process improvement
Thus, Good CENTS fit (everything but Time). At least from my perspective
Cons
- Thin margins:
- Not much product differentiation. Thus, we get close to nash equilibrium in an oligopoly setting. Thus, margins not stable and not that great. Volume is king here
- Of course we can some branding/value skew stuff regarding (i) logistics (we have the trucks and take care of the transportation), (ii) quality and (iii) service/relationship. However, at the end of the day, we sell raw potato
- Does not fit T in CENTS:
- Also, because of that, negotiation with producers and clients is critical --> If there's no that much product and brand differenciation, there's not much that blocks a sales guy to get out of the company and start doing the same as us --> because of that, my aunt is the main seller. She is answering calls and talking to clients and producs the whole day
- To scale more will be hard: we have already most of the supermarkets. We would need to go to other cities. Or start selling other products
- Hard to exit: there's not a brand to sell as in B2C industries
- Optimize processess in the B2B potato business. Make it as lean as possible asap
- After that, create a new potato brand focused on health. Lot's of opportunities for that in Brasil. We already have the logistics and relationship (both from producers and supermarket clients) for that. We can also do e-commerce. We could sell it in the future. Also, it would be less demanding to negotiate prices (higher shelf life)
What do you guys think?
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