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Any real life entrepreneurs here? GTFI!!

Discussion in 'BlackHat Lounge' started by Bisturi, Feb 21, 2012.

  1. Bisturi

    Bisturi Junior Member

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    Now that my site is becoming popular, I am thinking of giving the real life product idea a go. My idea is a manufactured product in the beauty and health industry and apparently it can be bought in bulk and mixed. I am really just eyeing the possibilities at the moment.

    Are there any of you guys here with a real life business which was sparked or is supported by your online business/site?

    Anyone really thrown oneself in the entrepreneurial path? Regardless of product or segment, any tips for starting?

    Anyone in the beauty industry with some tips as to outsourcing manufacturers, even if in China? This would be a product designed from scratch by me (as in I have the formula and rely on someone to produce it).

    This would be my first business and the progress of my online site is opening up my eyes with this business idea.

    Thanks :cool:
     
  2. pewshda

    pewshda Newbie

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    Occupation:
    Digital Artist, Web & Graphic Designer
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    Good luck on your mission to get something up and running, I am a self employed type myself but I don't have any physical products, I have been doing Art, Graphic & Web Design for almost 15 years so that's my "business"

    One of the biggest bits of advice I have if you want success in a marketed product is your brand image. So many products/companies/people have such terrible branding and such an unprofessional or low-end feel to them.

    I don't know about you but Appearance is the first thing that catches my eye and draws me to one product over the other (unless I have pre-researched my target product and know where each stands among each other). Packaging, Branding, etc. If you're product packaging doesn't look as good as the one next to it on the shelf chances are you're not getting the sale.

    It's a sad reality, even if your product is far superior the "average" consumer won't buy it -- they will go for the fancy packaged item totally assuming and believing with every fiber of their being it's probably a superior product because after all, it looks a lot more impressive.

    This is not the case for all consumers, the savvy ones who do their research before buying a product probably won't be swayed too much based on the 1st impression if they already know everything there is to know about the product and the reviews put it at top -- You'll have a hard time competing otherwise though.

    Good luck, if you ever need any marketing related design, packaging, branding, etc. Feel free to PM me or hit me up on Skype/MSN!

    Now go get that success! :D
     
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  3. Bisturi

    Bisturi Junior Member

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    Thanks man. Believe it or not but I will be my own brand image. I have the assets to base the product around my image.

    I am happy you said all of the above for it is what I had in mind. Most consumers rely solely on brand image and not on the tangible results of a product. While it may sounds scammy/snake oil-like, there is no denying that one must build a good brand image and hype around the product because that will make a mediocre product a good product. In fact, my potential competitors (in another niche) are doing just that and it works.

    The internet is a very important tool which is why I will support the product with my popular site and other whitehat tools.
     
  4. creep

    creep Registered Member

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    Hello,

    I'll just give you an overall view about the industry you want to tap into:

    1) its a billions dollar industry. This means that money are made , but INCREDIBLE budgets are also spend

    2) beauty and health industry is particulary hard to penetrate(at an increased volume scale) because all the legal aspects. you will need:
    - medical trials to proove you product
    - Local state medical aproval to put you product on the market. eg FDA in US
    Be ready to spend several $100K on this, but by the time you have your product approved, all the other firms have something similar on the market, heavely promoting it.
    Or even worst, somebody else pattented your formula, so you will not be even able to used it.

    Speaking of similarity:

    3) you need to ask yourself: how is my product different?
    if you don't have anything innovative,unheard of, really useful and wonderful(eg: for your market: pills that will slim and ferm your but WHILE also increasing your breasts WHILE also make your crooked nose straight and make your body hair fall) why would buyers buy from you instead of going with their favourite-FAMILLIAR brand?
    talking about familliar brand here is an example:
    eg: if I ask you to give me an answer STRAIGHT AWAY :
    Where would you buy a cheesburger from? McDonalds or Big Samuel burgeritos? what would you say?
    Maybe that you are sick of McDonalds cheesburgers but surely you will know nothing about Big Samuel burgeritos.

    4) you need to find a way to distribute your products. I can assure you that big supermarket chains are going to close the door in your face, if you cannot give them a good margin. So this means you need to produce at a low cost.. good lets talk about costs:

    5) Manufacturing in China: there are a lot of manufacturers, no doubt about that BUT, your competition is already producing there a a LARGE volume. Large volumes mean reduced costs.
    So large volume=low manufacturing costs= BIG capital

    6) I estimate that you need more than $500.000 starting capital to start dreaming of selling your products in several venues across your country.
    Operational costs, distribution, etc..

    7) you will learn that to sell more you need to make your brand more know. Now here comes the interesting part:
    You want a TV ad? BAM: ~50.000K production
    You want your ad live on multiple TV channels, maybe even primetime? BAM : ~ $250.000 per week
    After one week of media promotion you will see a rise in sales. But that will be waaaay lower than what you spend advertising.
    Once you stop advertising, your sales will spiral down fast.

    8)Let's say you managed all that and heck, even started selling your product. The moment you start gaining 0.5% market share and attract attention from the big players, you will be pulverised. you won't even know what hit you. You will ask yourself : why doesn't anybody answer my calls anymore...


    9) So if you have let's say 2-3 mill $ laying around and don't mind seeing that go down the drain, then by all means do it.


    Here is an advice: you say you have success with your website. That is good. Keep doing what you know, remain under the radar, build a loyal customer base. Make calculated baby steps.
    Don't be to greedy cause you may loose.
    regards
    Creep
     
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    Last edited: Feb 21, 2012
  5. macdonjo3

    macdonjo3 Jr. VIP Jr. VIP Premium Member

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    Stop asking questions, and looking for success stories to follow. Take action, MAKE PROGRESS. What progress have you made since you woke up this morning, besides making this thread? Seriously, ask yourself.