INTRODUCTION
To get any business started successfully takes many ingredients. All requirements fall into one of the following four key categories: 1. Desire, 2. Knowledge, 3. Time, and 4. Available funds. This report deals only with the financial requirements of starting a mail order business. Hopefully it will help the reader to evaluate whether he is financially able to embark upon a business venture that will bring about success. It is generally true that it takes substantially less money to get started in many mail order businesses than in a variety of other Businesses.
Many a promoter will want you to belive that it is possible to get started successfully for $50, $100, or even $200. However, it is totally false. It does take more than that. How much more depends on many factors which I will try to define as much as is possible here.
Since the mail order business covers a vast number of services and products I would like to define the contents of this report to deal with the selling of information products. This is where my expertise lies. While the same or similar conditions may apply to any number of other mail order Businesses, there may however be some differences to selling information products such as books, etc.
The following makes a number of assumptions. The most important ones are:
1. The operator ( or operators) of the new mail order business is employed or has other means of income.. He will not need to derive any profit from his new Business for a period of time.. How long will depend on many factors.
2. This is a Home based Business which has no employees.
3. The Business, at the start - until volume reaches $3,000 to $5,000 per month - will utilize the drop shipping services of a wholesale company.
4. Basic office equipment such as desk, file cabinet, computer, etc... are on hand.
A WORD OF CAUTION AT THE START AND RESOURCES AVAILABLE TO YOU
This is an exciting business and it can be extremely profitable once it reaches a certain momentum. However, like almost all businesses it is a very cost sensitive Business.
As you are getting started in planning and setting up your new Business think and act with caution when it pertains to any expenditures. This is one of the most difficult things to do since you are probably very enthusiastic and want to do everything today. So you need to learn HOW TO CONTROL YOUR ENTHUSIASM or it is going to cost you lost of extra money.
In this state of enthusiasm we tend to think that there is nothing we can do wrong and since we will be making lots of money in a few months lets get all necessary and often unnecessary supplies and equipment. It would be much better to wait until profits of the business make it possible to acquire what is needed. In the meantime you can make do with less. To be able to do so is a most important quality for the owner of a small to do so is a most important quality for the owner of a small Business.
If you are a parent think of your new business as a child. There will be a never ending sequence of surprises. And as the Business grows so will its demands, and yes its expenses.
START-UP EXPENSES -- INITIAL STAGE
The below listed expenses will be incurred in the very early stages of setting up your Business. This is at a time when you probably are not sure as yet what you will be selling. You will be writing to different companies for information to come up with the right p
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