Basically, one should let the decision for self-employment go through one’s head thoroughly and not rush things. But there are also situations in which it simply has to go a little faster and you have the desire to set up your own company within a very short time. This is particularly successful if you opt for the DropShipping business model. Why DropShipping is suitable for a turbo start and what you should keep in mind when starting such a project is explained below.
Quickly becoming self-employed? No problem with DropShipping
If we look at the normal case with regard to the path to self-employment, we see that most founders take a lot of time building up their companies. Often, years already pass in the course of the decision-making process for this career direction alone, during which possible business ideas are thought about again and again before one finally decides to become really active. And even after this decision to become self-employed, many months pass during which you meticulously prepare yourself and postpone your actual start again and again.
On the one hand, one could say that it is very appropriate to allow sufficient time for such an important and momentous decision. On the other hand, most of this time is not spent thinking thoroughly or searching for optimal solutions, but is wasted on many small steps and often superfluous details. Founders in this situation could reach their goal much earlier if they decided on a business model that is simpler in everyday life.
It can hardly be simpler than in e-commerce
Simple in this context means that as few hurdles or barriers as possible have to be overcome and that one can start work early instead. If you think in a structured way about the areas in which this is possible in a simple way, then you will very quickly come across e-commerce. The sale of products on the Internet today is very simple. Here, a comprehensive infrastructure consisting of software, sales platforms, supplier databases and information collections is available, making it easy to get started.
If you want to increase this effect even further, you can opt for the DropShipping trading model. This is because there are no additional obstacles that can make life very difficult for the normal shop owner.
The difference to normal online trading is considerable
Now one could say that DropShipping does not differ so much from conventional trading on the Internet. At least from the customer’s point of view, no differences are discernible at first glance. In both cases a web shop with certain products is available, where you can shop in a simple and comfortable way. A look behind the scenes, however, clearly shows the decisive differences.
So let’s take a look first at the main differences between the two forms of trade and then see why the characteristics of DropShipping can speed up the start-up and take-off process considerably. One of the most important differences is that the DropShipper can build its business model almost without capital. The conventional dealer needs a lot of money at the beginning of his business because he has to buy his stock in advance.
If, for example, you imagine an entrepreneur who wants to trade with electronic devices, then you can quickly imagine how costly the first purchase of goods can be. And that’s not all. The classic retailer takes responsibility for his own product selection. If, in the course of time, it turns out that various products cannot be sold well, then he remains sitting on his goods and often has to sell them at miserable prices in order to free up storage space.
Warehouse? But not with DropShipping
Apropos storage space: Of course the conventional dealer needs his own warehouse. This must not only be suitably and purposefully furnished, but also managed by appropriate personnel. Last but not least, tools, aids and, above all, packaging material must be purchased. All this costs a lot of time on the one hand and a lot of money on the other. And it doesn’t look any different in the course of day-to-day work. Each order must be processed individually, sent to the warehouse, assembled, packed and shipped.
The associated effort is very high and also costs a lot of working time. Not to forget those orders that are returned by the buyers later. These are also returned to the warehouse of the classic retailer and must be processed individually and in small steps. This requires appropriate processes, which must be carefully planned in advance. This also requires a lot of time.
As we can see, the individual characteristics of classic online trading mean that either money or time has to be invested in many places. Now let’s have a look at the situation of the DropShipping dealer in contrast. Here it becomes immediately clear why this business model is particularly suitable if you want to set up your own business quickly.
Big steps with small savings
The DropShipping dealer needs almost no capital to start his business. A few smaller reserves are sufficient to cover the low start-up costs. Considering how much time many founders and prospective entrepreneurs have to invest in raising capital, the time advantage becomes immediately clear. Many founders even wait until they have saved up the money they need themselves and therefore postpone their independence far into the future.
In the next step, the DropShipping retailer can immediately start selecting products for his assortment. Here, in contrast to the classic dealer, he can draw from the full. After all, he does not take any risks by placing products in his shop. If an item does not sell well, it does not incur any costs and can simply be removed from the shop on occasion.
While our conventional retailer is still busy finding a suitable warehouse and setting it up, the DropShipper can already concentrate on setting up his shop and preparing the individual offers for sale. And while the classic shop operator takes out warehouse insurance, posts job advertisements, conducts job interviews or purchases warehouse and packaging materials, the DropShipping retailer is already in the middle of the sales activity.
So we can clearly see that DropShipping is the much faster variant. And the DropShipper also saves a lot of time in the later working day, since it does not have to worry about the small step processing of individual orders or the processing of returns. The clever retailer invests the time saved in marketing the shop and looking after customers. In this way he achieves much better business results much earlier than the classic retailer.
To your own DropShipping business within a few weeks
If you do everything right in the area of DropShipping, you can easily set up your own company within a short period of time. A few weeks of good and prudent planning are enough to get to the finished web shop and thus to the first sales. So if you decide today that you want to be self-employed in the field of DropShipping and you are going to make an effort in the near future, then you can say in a month or two that you belong to the group of Internet entrepreneurs.
To make this task as easy as possible for you, we have listed a total of 6 important steps on the way to your own company below. We recommend that you work through and complete the individual points one by one, taking our practical tips into account.
Business plan and capital procurement
We have already clearly shown that a DropShipping start-up requires considerably less capital than a conventional Internet trader. However, you should not start this form of professional independence completely without money reserves. At this point, we strongly recommend that you prepare a business plan as the first step on your way to your own company.
This shows you exactly when you need which amounts of money and when you can expect which income. The business plan thus puts you on the safe side and helps you not to overtax yourself financially. Once you know exactly how much money you will need to start the business and for the first weeks and months, you can start raising the necessary capital.
Our tip: The tax consultant as a valuable supporter
Especially when creating a really resilient business plan, you can make good use of any support you can get. After all, this is not exactly one of the tasks that we deal with on a daily basis anyway. Simply consult an experienced tax advisor who will support you during the start-up phase. Since you need a tax expert for your day-to-day business anyway, it is advisable to involve him at an early stage.
Supplier search and shop software
As a DropShipping retailer, you are heavily reliant on working with professional and reliable suppliers. Finally, the manufacturers and wholesalers you will be working with will ship the ordered goods directly to your customers. How satisfied your buyers will be with you depends on their performance. With this in mind, you should make a lot of effort in finding suitable suppliers and examine those companies that are suitable for this intensively before you start a cooperation.
In addition, it is now also time to take care of suitable shop software that is precisely tailored to the requirements of drop shipping. An appropriate software solution will make your future daily work much easier.
Our tip: The database of DropShipping.com
Of course, you can use the Internet to search for suitable suppliers as part of a free search. Please keep in mind, however, that you cannot immediately tell manufacturers and wholesalers on the web whether they are active in drop shipping. Often you first have to make individual inquiries, which costs a lot of time and is often associated with disappointments. Instead, use the supplier database of DropShipping.com.
Business idea and selection of sales products
You are of the opinion that the decision for the DropShipping business model or the e-commerce industry is already a concrete business idea? Far from it. With this definition, you have only decided that the Internet should be your sales channel. In addition, a real business idea must at least define what kind of products you want to sell, which target groups you want to address first and why your future customers should decide in favour of your offers.
Answer these questions carefully to get a real business idea. Right after that it’s time to choose the right products for your shop. Simply look at your suppliers to see which articles they can supply you with and then make your selection.
Our tip: Put your own interests in the foreground
When it comes to defining a good business idea for your future shop, you should always start from your own preferences and interests. The more familiar you are with the later business object, the better. And if you also have a lot of fun handling your products, your work will be much easier in the long run.
Choosing the right sales platform
It is already certain that your future sales field will be the Internet. However, this alone is not enough to define the sales channels. Here you have various options at your disposal. For example, you can offer goods exclusively in your own shop or decide to use one of the large marketplaces. These are, for example, the sales platforms of eBay or Amazon, which have the advantage that there are already millions of customers there, while your own shop is still largely unknown.
Now you can get an overview of the possible sales opportunities on the Internet and decide which ones best suit your ideas and wishes.
Our tip: Choosing the right sales platform
Of course, you should define a main sales channel and spend most of your attention and time on it. However, it is always worth considering a multi-layered sales plan. Use different sales channels at the same time. This ensures motivating sales and good business results right from the start, especially in the start-up phase.
Sales launch and first revenues
You have now reached the fifth of six steps on the way to professional independence as a DropShipping retailer and you have already reached the point where the first sales successes beckon you. After you have created a business plan, selected suppliers and shop software, developed a business idea, selected products and created a sales concept, you can finally start selling products on the Internet.
Once you have meticulously completed all the previous steps, the first revenue will start to flow and your DropShipping store will gradually fill with life. You are now a fully-fledged Internet entrepreneur and will be able to earn your living on the basis of self-employment from now on. Congratulations. Congratulations.
Our tip: No premature euphoria
Of course, the arrival of the first order in your new shop is a very special moment. Now finally your business is off to a good start and the first turnover will soon be followed by many more. At this point, however, you should not break into euphoria prematurely. You can be happy about the partial success. However, you should always be aware that you still have a lot of work to do.
Marketing and Optimization
The foundation and the early start phase are now behind you. No need to rest now and just let the shop run. From now on, your individual success depends primarily on whether you are able to start the right marketing activities. Marketing in your case means that you use tools and instruments that can significantly increase your visitor numbers, your turnover and your profits.
Which marketing strategies are particularly worthwhile for your shop depends above all on your individual business concept. In addition, it is very important that you regularly optimize your shop from the beginning. Here you should increase positive factors and at the same time consistently reduce mistakes and weaknesses.
Our tip: Always on the ball
The use of effective marketing instruments and the concentrated optimisation of your shop are not one-off tasks. Instead, these topics will now accompany you on a regular basis and play an important role again and again. It’s best to work with a binding plan that always shows you exactly what commitments are due when and what you need to do to stay up-to-date.
DropShipping is an excellent alternative for every potential founder, especially when it comes to setting up a business quickly. Nevertheless, there are a few framework aspects that should be taken into account. These we show you here in this article on. Here we explain “The little basics” of DropShipping.
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