| Author | Message | ||
| Bruce Wellington (Bws88tr)
Advanced Member Username: Bws88tr Post Number: 3468 Registered: 4-2002 |
MARCUS CALL ME ANYTIME...LOVE TO HELP YOU OUT!!! BRUCE | ||
| Marcus Mayeux (Mmayeux73)
Member Username: Mmayeux73 Post Number: 611 Registered: 4-2002 |
Thanks doody! Great advice guys-thank you! | ||
| Mr. Doody (Doody)
Intermediate Member Username: Doody Post Number: 2006 Registered: 11-2001 |
A always B be C closing. set 'em up and knock 'em down, dude. doody. | ||
| Marcus Mayeux (Mmayeux73)
Member Username: Mmayeux73 Post Number: 608 Registered: 4-2002 |
Small update. The three out of 7 restaurants I have hit, want to order our tea. It's a start... | ||
| todd (Flat12)
Junior Member Username: Flat12 Post Number: 52 Registered: 7-2003 |
I would say to seek those who have "done it" Everyone has ideas, read books, heard this or that or has this friend who knows about this. ALways seek out those who have actually done and experienced first hand, and persevered through it. Through them you will gain insight, honesty, and friendship, real lesson that work. | ||
| Marcus Mayeux (Mmayeux73)
Member Username: Mmayeux73 Post Number: 606 Registered: 4-2002 |
Thank you Ben and to everyone else for giving me top notch advice! Have a great weekend and I will keep you guys in touch! Oh, Jack you hit it on the money on how everything is happening! Best, Marcus | ||
| Ben Cannon (Artherd)
Intermediate Member Username: Artherd Post Number: 1069 Registered: 6-2002 |
"My simple advice: Go out to as many potential customers as you can and just talk, don't sell yet. Listen to what they say that they need and how they buy and tailor your services and product to their "average need". That goes from varieties, to packaging, brand name, you name it." Jack- exactly! You hit it buddy! This is exactly what my marketing guy Mark has taught me. He just stis back, and takls with people. Often asking them questions about our product, but as thought he were just an average joe who had seen it for the first time. Amazing honesty and feedback that is invalueable. Marcus- just keep in mind, the guy who started Round Table (I think, one of the huge national pizza joints) started, and bankrupted SIX OTHER PIZZA PLACES first! It takes the kind of mettle to try against all odds, a *7th* straight time, in order to make $billions  Thomas Eddison tried over three THOUSAND filiment materials for the light bulb before he found Tungsten. Right around 2700 or so you gotta bet he was feeling pretty discouraged. And he still had 299 tries to go before he hit it big and forever changed the world as we know it. PS: If you've got goosebumps on your neck right now, this stuff is for you :D) Best! Ben. | ||
| Marcus Mayeux (Mmayeux73)
Member Username: Mmayeux73 Post Number: 605 Registered: 4-2002 |
Thank you for all the great advice-just awesome! To answer some of the questions: I have been doing marketing research since January for grocery stores only, I have just now started with restaurants. I have designed a container to market grocery stores (Whole Foods, Central Market, Target, etc..) It has all been thought out very well down to colors that atract a specific buyer-women are the biggest purchasers for tea right now, so everything was designed around that. There is no other container design like the one I have come up with. My intention was to stick out like a sore thumb and get noticed quickly (design wise) As for the restaurants we decided to try this out as a side project, see how things go. Right now we are only hitting certain restaurants-start small and then go to the chains. Mostly high dollar Asian places. Basically we are going by guidelive.com and D magazine for reviews and what is hot. The market is there, it is getting in the door and having them buy our product. Most of these restaurants have contracts, so there is a lot of trial and error, which is ok. Jim, I live off the Tollway so I am open to meeting. Thank you very much to you all for your help and advice! Marcus | ||
| chris cummings (Entelechy)
Member Username: Entelechy Post Number: 531 Registered: 5-2001 |
Great contributions all, but I have give kudos to Jack's post(s) as well - really great and very important stuff! Bravo! Marcus, I have nothing but respect for those willing to take things into their own hands and chart their destiny. You've gotten some good advice here. My boss has been practicing Yoga for nine years and long ago he told me he thought the next big thing would be to start a chain of tea houses like Starbucks. Not a bad vision, eh? I didn't pursue that or other ideas that I've had because one essential was lacking - passion. In my view, we don't have a long time here to live our lives and enjoy the experience -- if I could be successful doing something, but not passionate about it, it would be a Phyrric victory for me. I also recall from meeting with business leaders while attending seminars in high school, the one thing I came away with after many discussions, was that they had all "failed" and tried again, and again, and again...they loved the process of taking an idea and starting it up. If it tanked, they learned from it (as Doody said) and applied that knowledge to the next one. Good luck and keep us posted ~C | ||
| Jim Muise (Writerguy)
Junior Member Username: Writerguy Post Number: 65 Registered: 9-2003 |
Marcus Doing the same thing right now with the Magazine (see Texas/Texas Driver)on the other side of this site. Drop a line the next time you are heading to the tollway and We can see what we can do to help eachother | ||
| Jack Habits (Ferraristuff)
Intermediate Member Username: Ferraristuff Post Number: 1143 Registered: 4-2003 |
LOL Dale! >>>You must be one of Havard MBA types... Nope... Went out of school before the level reached the finer details of such marketing theories as "cognitive resonances" which sounds interesting when you throw it out at parties but IMHO had nothing to do with reality anymore. For me, most of marketing boils down to common sense and being able to take the view of your customer. "Why would that guy buy from me?" >>>All I want to know is how much money did you lose before you figured this out? Waaaay too much! LOL! My first business venture was a failure as it was based on a "buying opportunity" which allowed for great margins but then I ran into all the problems that I listed in my first post. Life turned out to be a better education than Harvard could ever be.... Jack | ||
| Dale W Spradling (Drtax)
Member Username: Drtax Post Number: 451 Registered: 4-2003 |
Wow, Jumping Jack Flash nails it! >>"This is what the market wants, now go and produce it!"<< >>Go out to as many potential customers as you can and just talk, don't sell yet. Listen to what they say that they need and how they buy and tailor your services and product to their "average need"<< You must be one of Havard MBA types... All I want to know is how much money did you lose before you figured this out? Because I gotta say, you jump to the top of the list. Amazing stuff. I mean actually listening to what customers say? Geeze Louise, you should write a book. BTW Marcus, I'm not kidding. Jack's advice is the best on this thread. Selling is simple: First, you ask your customer what they want to buy. Second, you listen to what they say. Third, you repeat what they just said just to be sure that you understand what it is that your customer wants to buy. Fourth, once you have a very clear understanding of what your customer wants, you can then try and convince him or her that what you have to sell is what they want to buy. Simple advice. But I would have never been able to afford a Ferrari without understanding this basic point. Dale | ||
| Jack Habits (Ferraristuff)
Intermediate Member Username: Ferraristuff Post Number: 1142 Registered: 4-2003 |
Hi Marcus, I LOVE those niche products as they really allow you to build a brand etc. I'm a marketing guy by nature so you can ignore all the following... ;-) NONE of the following is written to put you down, discourage you or anything. These are just my observations. Reading your initial post, it LOOKS to me as if the business was born out of a "production opportunity", i.e. your friend's uncle tea estate. Sounds like "production driven marketing". "This is what we make, go out and sell the stuff!". All marketing theories, and more importantly practice, dictate that it should be the other way around... "Marketing driven production" "This is what the market wants, now go an produce it!" I assume (but it is really not more than that, an assumption) that that uncle might sell to you guys at a favorable price so the margins should be OK which might have driven the decision to set up this business. I understand from your post that you only now have gone out with samples to sell to potential customers indicating that you have not talked to potential customers before you started. What market research have you done before you started? My simple advice: Go out to as many potential customers as you can and just talk, don't sell yet. Listen to what they say that they need and how they buy and tailor your services and product to their "average need". That goes from varieties, to packaging, brand name, you name it. THEN talk to that uncle and tell him that "this and this and this" is what you need and what you're willing to pay for it. Run the numbers. Make a REALISTIC sales forecast. Be a pessimist... assume the worse... then run the numbers again and see if you can make a living on it. Only selling tea to restaurants in Dallas? My gut feel says "that's a VERY small market for a newcomer". How can you expand beyond that? Selling to small business entities is expensive. Does your margin allow for that? Account for a well paid sales guy doing the job that you do now (to go out and give away samples hoping to make a sale). How much sales does he have to make to pay for himself? More than you ever imagined that the market could take? Know your competition. See if you can find out at what prices and terms the competition is selling. Why do your potential customers buy from their current suppliers? How will you promote your brand and product? Merely by talking to restaurateurs? EXPENSIVE! Is there a budget for advertising? Is there room in the budget for it? Don't underestimate how "unimportant" you are to your customers. What % of sales of a restaurant comes out of tea? Marginal. Will they go through the effort of trying a new supllier (with all risks involved for them) for an "unimportant" product? Are there competitors that are able to offer a much wider range of products (i.e. beyond just tea)? If yes, it will be very difficult to steal away the tea business from them as customers will buy from the other guy out of convenience. So what do you have to offer to counter that? If that whole puzzle comes together, THEN start a business. I've had 100's of business ideas over the years of which I have only started 2 so far. Last, but certainly not least: Running your own business is 1% inspiration and 99% perspiration... Good luck & keep us posted! Jack | ||
| Marcus Mayeux (Mmayeux73)
Member Username: Mmayeux73 Post Number: 604 Registered: 4-2002 |
Rijk-LOL I was still working belive it or not-at least phone calls, today was my first day out. Best, Marcus | ||
| Rijk Rietveld (Rijk365gtb4)
Member Username: Rijk365gtb4 Post Number: 304 Registered: 1-2002 |
Oh yes, there is one more rule: You can't get sick. Rijk | ||
| Marcus Mayeux (Mmayeux73)
Member Username: Mmayeux73 Post Number: 601 Registered: 4-2002 |
Thank you so much to all of you for your advice!!! Sorry this took so long to reply, I have been sick with Bronchitis-so my apologies. We have contracts done between my friend and myself as well as contracts done between the tea estate, factory, and employees. His uncle (Sri Lanka) is in direct involvement and also has signed a contract. We have filed all paper work dealing with the secretary of state as well as taxes. As for where we are, my friend is a project manager and has been for several years (Alcatel and Verizon). He has everything mapped out and we have been doing this since day one-Excel spreadsheet. I am the anal one who makes sure everything is what it seems and no bs-I like to know everything. I take care of all the design work and sales. Just finished a meeting with a restaurant not too long ago-went well. I am starting from the bottom and I like it like that, I am learning as I go and to me that is the best way. I like to take things slowly as well, no rush-serve the customer as someone has said, I am all about that! My friend and I balance each other out very well-so it works. Thank you very much-this means a lot what you guys have said here! Very Sincerely, Marcus | ||
| Ben Cannon (Artherd)
Intermediate Member Username: Artherd Post Number: 1024 Registered: 6-2002 |
My advice, don't make it equal. Make it 49/51 so there is a dispute handler/settler. Dosen't really matter too much who it is, but I usually make it the guy with the slightly less-strong Ego, with the idea of balancing the power. Sometimes that's me, sometimes it's not. Either way, he has to have a GOOD buisness head on his shoulders first and foremost! Unless you are VERY VERY RARE AND LUCKY, you will need this 51/49 balance. Lastly, marketing and sales is fully half of a company. The other half is the design, idea, manufactuaring, and packaging. The OTHER half is all the blood, sweat, and tears you've got! (yes, there are three halves :D) It's a HELL of a ride, and not for everyone by any means. But the freedom and rush is withought paralell. I must be a junkie for it, I am closing in on 10 companies right now. Do what you love, and do it well. Best! Ben. | ||
| Dale W Spradling (Drtax)
Member Username: Drtax Post Number: 439 Registered: 4-2003 |
Last Point -- Keep overhead as low as possible. Get it down to zero and keep it there. Remember the future belongs to the Dells and Walmarts of the world. If you don't believe this, ponder this. HP recently said that they expect to touch bottom soon and to firm up PC prices. What was Dell's response the next day? Dat's right, they cut PC prices, again. Hmmm... Looking back over this, these points make sense for any bidness. Imagine that. Dale | ||
| jeff ryerson (Atheyg)
Member Username: Atheyg Post Number: 517 Registered: 8-2002 |
Dale you are also correct, better to have something in writing than nothing The any check over $500 that requires 2 sigs BTDT, doesn't work most banks don't even look at the signatures anymore. I have had checks go thru with no signature,its a good idea but don't expect it to protect you Having a partnership is like being married, everything your partner does personally and in the business your business is liable for | ||
| Mr. Doody (Doody)
Intermediate Member Username: Doody Post Number: 1885 Registered: 11-2001 |
Always remember that things are sold. They are not bought. AMEN, brother! doody. | ||
| Jason W (Pristines4)
Member Username: Pristines4 Post Number: 733 Registered: 12-2002 |
Peter, OT question, but where are you advertising such a product? | ||
| Dale W Spradling (Drtax)
Member Username: Drtax Post Number: 433 Registered: 4-2003 |
Okay, step # 2 -- Sell some soap. The dot.com bust proved one thing - capitalization don't mean squat if you can't figure out how to sell (and collect) something. The most important part of any bidness plan is sales. I always wanta know (1) Who is your customer? (2) What do they want to buy? (3) Where are they? (4) How do you plan to reach them? Always remember that things are sold. They are not brought. | ||
| William Huber (Solipsist)
Intermediate Member Username: Solipsist Post Number: 1348 Registered: 9-2001 |
NEVER GO INTO BUSINESS WITH FAMILY WHEN THE OTHER HALF HAS NO CLUE WHAT THEY ARE DOING! | ||
| Rodney Haas (Icars)
Member Username: Icars Post Number: 463 Registered: 3-2002 |
Marcus, I would get a signed contract. I would also make sure that the checkbook requires two signatures on everything over $500. This is generally your best safeguard. Since you are in a food business, I would think about a LLC. You don't want to be sued by someone who is allergic etc. And now for the biggest thing, make sure you stay current on all taxes. You can hire a accountant for so much a month, it's a good investment. | ||
| Dale W Spradling (Drtax)
Member Username: Drtax Post Number: 432 Registered: 4-2003 |
>>Its nice to have a written contract for a partnership but in reality it means nothing, I've had 2 separate businesses with partners and detailed contracts but have been ripped off by both.<< Jeff, you are correct. My point was actually more optimistic, i.e., people's memory has a way of changing if the bidness starts making money. Obviously, when a good deal goes down, written agreements generally aren't worth spit. But, if the business does suceed, then, well, it gets interesting. As a rule of thumb, entering into a 50/50 deal is bad idea. While people may be equal under the eyes to the law, they are very rarely equal in real life. Sooner or later, somebody comes undone. Having a written agreement does, at least, give a point of reference for solving the eventual disagreements. Don't mean to sound so negative, but I have sung these blues before. If I had a dollar for every time I said that I'd never again take on a partner; why, I might even have a net worth, ha! But, there's always the exception to every rule. Currently, I'm involved in a 50/50 deal that has worked great. HW, my bidness partner and I are old hands at this stuff. Plus, we are not sharing overhead. So maybe this is the secret to a successful partnership, who knows? But again, get something in writing as to who is gonna do what, with what and where and when. You should also note under what conditions each partner gets to dip into the till. Finally, you need to have an agreement about sharing financial information. Good Luck | ||
| Bruce Wellington (Bws88tr)
Advanced Member Username: Bws88tr Post Number: 3136 Registered: 4-2002 |
MARCUS MY MAN, GOOD LUCK TO YOU... I OWN MY OWN BUSINESS AND IF THERE IS ANYTHING I CAN HELP YOU WITH TO CLEAR UP SOME QUESTIONS YOU MIGHT HAVE, BY ALL MEANS, CALL ME 888 882 6965 BRUCE | ||
| Dan Gordon (Ferruccio)
Member Username: Ferruccio Post Number: 257 Registered: 2-2003 |
I have owned a small Lawn and Landscape company for 5 years now. I have seen some increadibly smart, well funded (will maybe not well enough), knowlegable people go out of buisness. Theres only one secret that I have found in buisness: Persistence. Persistence and the ability to find a market nich is what the people that make the big bucks do. | ||
| PeterS (Peters)
Intermediate Member Username: Peters Post Number: 1594 Registered: 1-2003 |
Marcus..OMQ: Since you started last December, how 'on-target' are you and your partner on your business plan? | ||
| jeff ryerson (Atheyg)
Member Username: Atheyg Post Number: 516 Registered: 8-2002 |
Its nice to have a written contract for a partnership but in reality it means nothing, I've had 2 separate businesses with partners and detailed contracts but have been ripped off by both. Its very hard to sue your current partner even if he is commiting outright fraud (which both of my expartners did, one was a Lawyer)and robbing the bank account blind, getting a TRO (restraining order) is very expensive and difficult and will require a large Bond, and if you both end up suing each other they'll need to bring a trustee in to run the business who doesn't have your best interests at heart Don't spend all the money you make on uneccessary purchases and reinvest it back into the business, find ways to lower costs | ||
| PeterS (Peters)
Intermediate Member Username: Peters Post Number: 1593 Registered: 1-2003 |
Marcus...First off, best of luck for your new venture. Everyone is right, get an agreement signed between you and your partner. Not only will you be sharing profits, you will share the losses and all associated marketing costs. Single-handedly, I started www.performancedevices.com last December. This new company will close the year near $1.0M. I too have a manufacturing partner (with an agreement in place) that invested in my company. If what I have done looks attractive to you (after you visit the website), send me an email and I can be of great assistance to you and your partner. This is my third company in as many years...I'm good at this. | ||
| Tyler (Bahiaau)
Intermediate Member Username: Bahiaau Post Number: 1077 Registered: 12-2001 |
Dale is absolutely right. It doesn't matter how close a friend it is, it has to be IN WRITING! Money can and frequently does change people. I've seen it first hand. I was involved in a start-up that was based on a handshake with a long time family friend. Cost me the friendship and a couple million dollars when he screwed me. Lawyers are expensive, but I've learned the hard way that in the long run they are pretty damn cheap comapared to the alternative. Doody is right about not being afraid of failure. If you take risks it will eventually happen(Lord knows I've had my share), just make sure you LEARN from any mistakes you make. Another thing to think about if you have not allready done it is to have clearly defined roles as owners. It should be written down what each persons responsibilities are and what the expectations are. Best of luck!!! | ||
| Dale W Spradling (Drtax)
Member Username: Drtax Post Number: 431 Registered: 4-2003 |
Step Number 1 - Get your deal with your 50/50 partner down in writing. Do not pass go. Do not work another mintue. You must do this now. Don't ask me how I know this... Dale | ||
| Kds (Kds)
Member Username: Kds Post Number: 252 Registered: 5-2003 |
DO NOT be under capitalized. | ||
| Marcus Mayeux (Mmayeux73)
Member Username: Mmayeux73 Post Number: 600 Registered: 4-2002 |
Thanks Doody for your advice, please keep them coming. Very Sincerely, Marcus | ||
| Mr. Doody (Doody)
Intermediate Member Username: Doody Post Number: 1874 Registered: 11-2001 |
millions of pages have been written on this topic, so i wouldn't know where to start. based on the little you've written, i'm happy to toss some random thoughts at you that may or may not be useful. it sounds like you're quite passionate about this - that's good - keep that passion kindled - you'll need it for the down times (and there will be down times - it happens). don't be afraid of failure. you'll learn more about your skills and yourself during failure than you will during success. i've had new business successes and new business failures. i'm thankful for the education provided me by the failures. failure isn't optimal. failure isn't a goal. failure is never an option. but be realistic about failure rates of newcos. i've seen too many guys beat themselves up 'cuz their first company didn't make it - and they don't go on to the next newco. sad. doody. | ||
| Marcus Mayeux (Mmayeux73)
Member Username: Mmayeux73 Post Number: 599 Registered: 4-2002 |
My friend and I have been working on a new business since last December. This all happened when I could not get hired as a graphic designer, so I was offered an opportunity to start a tea company. My friend's uncle owns a tea estate in Sri Lanka and we are importing tea to the US. I have been designing the containers, web site, logo, tag line etc... since then and just now I am going to local restaurants (Dallas) to give free samples of our product. I just started last week and I am doing pretty well, I may have a sale here in a day or two. I am looking for any advice in running our company-I am 50/50 partner. I have a lot of responsibility and take this very seriously and I am very determined person and do not want to fail. Any help would be appreciated. Best, Marcus |