Sinking in about $75K to start an ebiz

[Rem]

So I have this friend who inherited about $150K from his mother who passed away about a year ago. He wants to start a business online and wants to take half of that money and use it to get it going.

Now, let's turn to all you. That's all I am going to reveal at this point. Let's pretend this was you. You decided you were going to take 75K and just dump it into a new business online.

1) What industry (niche)?
2) What would you sell?
3) How would you set it up?
4) And anything else you might think of LOL?

I may point him to this thread later but wanted to sort of open this up without setting any limitations. So dont' ask him what he's good at or how he can help others and what he has to offer.

What is it that YOU would do. How can YOU be of service to others. I think if we focused on what we all would do ourselves we would be of more help.

So you now have $75K to dump into something online. Would you even use it all? What business would you start?

Have fun! :coffee:

 

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[MJ DeMarco]

Your question is kinda to generic to answer.

1) What industry (niche)?

Whatever niche had a need that needed solving, or better solving.

2) What would you sell?

Whatever the market needed sold, or better sold.

3) How would you set it up?

S-Corp/LLC/ or C-Corp.

4) And anything else you might think of LOL?

$75K is a lot of money; an internet based company can be started for less than $1K. Why use the $75K if you don't need too? Or, use it to advertise or promote. Or, for infrastructure build.

 

[EntreViews]

I would do a lot more research before I spent a penny but I would check this out.... tubbynerd dot com

I found this info the other night on here and thought it has a lot of potential.

 

[Jonleehacker]

I'm with MJ on this one.

If it's a start up, I'd put $74k into the stock market and use $1k to start the ebiz.

Otherwise, spend $20k and buy an existing and profitable ebiz.

Example of a great buy for $20k.

 

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[Rem]

Nice find. Buying an existing start up business is a great idea.

Anyone else know what they might do?

I agree... $75K is a lot. He probably would be happy to know he doesn't need all that cash. :smx9:

 

[Gymjunkie]

As others said no need for that much money. Unless you buy whiz that is well known and profitable.

I'd get into mobile world now! iPhone apps or a mobile website. Things are going there since more and more people are getting smart phones

 

[Kung Fu Steve]

Every single time I have ever spent money on something I found out extremely soon after I could have got it for a lot less, or even free.

Sometimes I think we need to spend that money to open our eyes, but since you are a fastlaner, why not save him the trouble and open his eyes for him before he wastes what his mother worked so hard to leave behind for him.

 

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[biophase]

In the first post it sounded like he wanted to start a store. If that's the route he wants to go I would:

If going after a small niche:
Spend $1k to start the store
Spend $2k for SEO/PPC for 12 months
if dropshipping then put the $72k in the bank
if stocking products spend whatever you need on inventory, packing material and boxes

If going after a large market
Spend $2k to start the store (only because you may need more features)
Spend $36k+ on SEO for 12 months
Spend the rest on inventory, packing material and boxes

But in all honesty, he probably needs less than $5k to actually open a successful store. The big variable is inventory costs and SEO which greatly depend on the market.

 

[randallg99]

bio, I have several questions:

1. when you say "start a store," are you implying an ebay store? or any ol' ecommerce website?

2. and when you state "2k for SEO/PPC" are you implying $167/mo? or is it 24k/year?

3. "dropshippers" essentially deliver directly to customer, right?

Thanks in advance. (and apologies for the elementary questions)

 

[Rem]

Maybe I should start a new thread on this but how do you create a ringtone for people to download to their phones?
Anyone know?

 

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[Gymjunkie]

Maybe I should start a new thread on this but how do you create a ringtone for people to download to their phones?
Anyone know?

Who needs ringtones when you can easily have mp3 songs on your phone?? The ship has saled in this niche I'd say.

 

[maximus20895]

Maybe I should start a new thread on this but how do you create a ringtone for people to download to their phones?
Anyone know?

I'm not sure if this would be a good niche or not. Do people buy ringtones now or what?
I know how to make them, but what would you do with the information? Would you charge them money for a small, detailed book on how to do it or what?

 

[Rem]

I would find 15 motivated up-and-coming web entrepreneurs, and invest $5K into each of their ideas in return for a portion of their equity and revenue...

Or, if he knows the industry well, find two of these people, and invest $30K+ each...

This is actually an excellent idea. Where would someone seek out these people? Or is it just something you would have to know from inside information?

I am actually interested in lending...

 

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[Gymjunkie]

This is actually an excellent idea. Where would someone seek out these people? Or is it just something you would have to know from inside information?

I am actually interested in lending...

Check out Kiva.org

 

[Rem]

Has anyone had any luck with Lending Club??

I would prefer to talk to people on the phone. Maybe do a bit more than just shuffle off some cash and get it back with interest. Not that it wouldn't work since it is done all the time but maybe actually having a small say in the business. Or is that asking too much?

 

[Jonleehacker]

bio, I have several questions:

1. when you say "start a store," are you implying an ebay store? or any ol' ecommerce website?

2. and when you state "2k for SEO/PPC" are you implying $167/mo? or is it 24k/year?

3. "dropshippers" essentially deliver directly to customer, right?

Thanks in advance. (and apologies for the elementary questions)

I'll give you my 2 cents on these:

1. probably not ebay. Much better to own your own domain name and real estate rather than just work ebay. Also, margins are low on ebay, on a proper ecom site, in most cases, you can get a lot more for the same products. Something about not having 50 other stores selling the same thing side by side keeps prices lower on ebay

2. for a small niche ecom site, you could probably do pretty well with $167/mo. if you know how to get a good return for your spend.

3. Yes, you would do order processing and then send order to the manufacturer/distributors who would fulfill the order and ship to your customers.

If you have any other ebiz questions, feel free to PM me... I owe you

 

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[biophase]

bio, I have several questions:

1. when you say "start a store," are you implying an ebay store? or any ol' ecommerce website?

2. and when you state "2k for SEO/PPC" are you implying $167/mo? or is it 24k/year?

3. "dropshippers" essentially deliver directly to customer, right?

Thanks in advance. (and apologies for the elementary questions)

1. I mean get a domain, get some good shopping cart software and open a full fledged store.

2. $167/mo should be decent for a small niche with minimal competition. It could be a little on the low side if you are doing PPC and SEO.

3. Dropshippers send directly to your customers.

 

[randallg99]

1. I mean get a domain, get some good shopping cart software and open a full fledged store.

2. $167/mo should be decent for a small niche with minimal competition. It could be a little on the low side if you are doing PPC and SEO.

I'll give you my 2 cents on these:

1. probably not ebay. Much better to own your own domain name and real estate rather than just work ebay. Also, margins are low on ebay, on a proper ecom site, in most cases, you can get a lot more for the same products. Something about not having 50 other stores selling the same thing side by side keeps prices lower on ebay

2. for a small niche ecom site, you could probably do pretty well with $167/mo. if you know how to get a good return for your spend.

If you have any other ebiz questions, feel free to PM me... I owe you

here are more questions that have most likely already been covered on this forum and if so, point me there- but if you could briefly explain:

1. regarding the shopping cart software, doesn't one have to be intensely smart and aware about updating, designing and operating the website to the point that it's a full time j-o-b?

2. for $167, you are insinuating that PPC is the same as google adwords and that will fill that budget or are there other ways you would spend that advertising money? How does one actually pay for SEO? I thought SEO was really incorporated within the site and is part of the design.

3. and lastly, if you invest 3k into a site, what kind of rate of return should someone realistically expect?


Jonlee, I will PM you- thank you both for helping me.

 

[mtnman]

I agree with everyone except for one part. Buy one of these.

The DomainingTips and SnapNames “New Year’s Showcase Auctionâ€Â | Domaining Tips

 

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[EastWind]

Before he starts any business.

I suggest he picks up a bunch of books, on micro/macroeconomics, on the stock market, on marketing, on starting businesses, especially bootstrapping a business. He needs to read or that money will go by so fast.

I always cringe when people say, I have $X amount, what kind of business can I start? The only valid answer I can think of is (unintentionally charitable donation) cuz that's exactly what will happen.

anywayz, like other's have said. come up with an idea that will create value, bootstrap it.