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Currently running my online store that supplies car parts to a niche market. It has been moving along reasonably - enough to keep me happy but not run off my feet. What I have noticed though is a need for a specific product. There is only one main supplier (ie. OEM manufacturer) that sells this product and they charge an absolute premium. $700-800 US for something that is a common problem on my specific target market. I did get my hands on a crude version (ie. not complete OEM look alike but 'does the job'), managed to sell a few sets of these at $300 USD.
I did some researching and kept coming up with loose ends on where I could get this product remanufactured, until 'luck' would have it that I got in contact with a individual who remanufactures the parts I am after but for other classics. He took the time to show me exactly how his product is manufactured and the outcome - quality product. Long story short - he was willing to help me on my new business and said he could assist with getting the parts made. Would work out that I can have them made for $120 ea (not including initial tooling / design etc) but would be easily able to sell for $350 USD ea.
Now my issue is funding these parts - I'm looking at around 15k USD. At the moment, all of my business profits are reinvested into building stock levels and greater product variety from my current suppliers. 'Spare' cash isn't really there to access. I've previously tried accessing business loans, but these have proved to be fruitless because of the current economic environment and the business being under 1 year old.
There were a couple of other options though.
A) I own a car that is in this specific niche market, I can sell it but the car also assist in promoting the business (ie. club events etc).
B) One customer I met in person is an avid enthusiasts and regularly rebuilds these cars. He expressed his interest in my idea, believes these would have international demand and suggested he would be willing to come to an agreement and outlay cash to get it moving. While this seems like a good option, I get concerned about brings another person into my business etc but if anyone has experience of how this has worked for them, please let me know.
C) Apply for a personal loan - although high interest rates and repayments.
D) Wait. Put money aside until I can get the capital together.
Any help would be greatly appreciated.
I did some researching and kept coming up with loose ends on where I could get this product remanufactured, until 'luck' would have it that I got in contact with a individual who remanufactures the parts I am after but for other classics. He took the time to show me exactly how his product is manufactured and the outcome - quality product. Long story short - he was willing to help me on my new business and said he could assist with getting the parts made. Would work out that I can have them made for $120 ea (not including initial tooling / design etc) but would be easily able to sell for $350 USD ea.
Now my issue is funding these parts - I'm looking at around 15k USD. At the moment, all of my business profits are reinvested into building stock levels and greater product variety from my current suppliers. 'Spare' cash isn't really there to access. I've previously tried accessing business loans, but these have proved to be fruitless because of the current economic environment and the business being under 1 year old.
There were a couple of other options though.
A) I own a car that is in this specific niche market, I can sell it but the car also assist in promoting the business (ie. club events etc).
B) One customer I met in person is an avid enthusiasts and regularly rebuilds these cars. He expressed his interest in my idea, believes these would have international demand and suggested he would be willing to come to an agreement and outlay cash to get it moving. While this seems like a good option, I get concerned about brings another person into my business etc but if anyone has experience of how this has worked for them, please let me know.
C) Apply for a personal loan - although high interest rates and repayments.
D) Wait. Put money aside until I can get the capital together.
Any help would be greatly appreciated.
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