Questions

***All business models are made with the idea that donated recycled materialsvwill be used - will need to either give them something in return for their donation or donate a percentage of the earning to charity to validate them donating to the company in the first place...no one gives anything away for free. PRESELL - Other people pay to get them made 1) Crowdfund: - 50/50 UPSIDE - no start up cost or any cost for that matter. People will pay for the manufacturing. Just shoot a video, pictures, and tell people who you are. Big audience waiting to fund new ideas that help the world DOWNSIDE - Need an amazing social media presence that will be everyday for two weeks prior and up until the funding period ends...In direct competition with others 2) Presell to mom pop local stores: 50/50 - stores dont get equity - they are PRE- buying the product you dont have yet so you can have the money to make it and give to them cause they want it in their store. UPSIDE - the stores will pay for the cost of manufacturing. And No need for social media marketing - just walk right in their door or pick up the phone. DOWNSIDE - have to convince stores that people want the product and it is a good investment for them!!!(they will probably want to see proof like social media interaction) - if they arent SURE it will sell they will not invest. They will also want deal on price since they plan to sell it after you. Non Presell Options- you pay someone or give someone equity to get it made 1) Sell on Website 50/50 if you pay for the production costs yourself 40/40/20 if you give the manufacturer equity -They will want proof before investing becuase 20% of no sales is $0 (will also need to put in contract that you maintain the option to buy them out within two year - you dont want them holding the controls when it get worth big bucks) UPSIDE - complete customized experience and control - no fees to share profit. You pick the price and people buy it. Downside -You pay to make the flanny packs before Need to set up webpage by self and pay for hosting and domain name. Need to drive all traffic since new site. 2) Sell on etsy 50/50 if you pay for the sewing yourself 40/40/20 if you give the manufacturer equity Upside - large audience. free store (small fee for process), make the items as the orders come in, just need a few upfront to take pictures of for website. Downside - small fee for posting listing - will be making them one at a time as the orders come 3) Sell at festivals/fleamarkets/artwalks/ 50/50 if you pay for the sewing yourself 40/40/20 if you give the manufacturer equity UPSIDE - lots of attention and traffic. Easy to get a spot for cheap DOWNSIDE - need a lot product upfront in order to sell it. - out of pocket 4) Sell to mom pop local stores - 50/50 if you pay for the sewing yourself 40/40/20 if you give the manufacturer equity UPSIDE - They will be able to buy bigger quantity. Local stores are always looking for new products and are much easier to get in with then a larger chain like Urban Outfitters. Can pick up the phone and call any store in the world. DOWNSIDE - Will want to buy wholesale price and we would need the product made before the money comes in

If business model was all about "revenue" then you could have hit somewhere on the dart board. However, if you've passed the information to your friend under the hashtag "Business Model" then I would like to ask "What's the business idea?"

I am a bit perplexed to read your suggestion about trading everything for equity. That definitely doesn't sounds like a business model.

I believe, either you have missed some important information to mention or you need to be a bit crisp with your description. Quality of response (solution) will depend on the question quality.

Is there anything specific you're looking at? Do feel free to reach out to me with more clarity to get clarity. Thank You!!


Answered 10 years ago

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