Hi all,

 

Please forgive the business nature of this post but I am doing some [personal] research. Basically, I am looking for new ideas to launch a business or two in the next couple of months. A lot of people are suffering the effects of the current banking crisis and have had to adjust their spending habits accordingly. Inflation is higher than anticipated; mortgage rates are higher than they have been for many years; The cost of living has gone up drastically. All these (and many more) are having an effect on how and where we spend our money. Businesses are not immune to this either (as is evident by the number of redundancies and high unemployment figures). Point in case, DTA-Motorsport (UK) - the company I set up five years ago - is currently turning over 70% less than this period last year (which in turn was 38% down on the year previous). I am having to pay higher wholesale prices and am being squeezed on profit margins (due to competition and global sales channels like ebay and chinese manufacturers). To keep the business ticking over I am having to work three times as hard for a single sale that yields (on average) 15% less profit than last year.

 

So, what am I looking for? I am looking for something to sell (a good or service). Something which fares well during economic down turns. Some ideas already offered (and rejected) include an online pawn service, debt collecting (:0), selling items on ebay for third parties, etc.

 

Why am I asking you for your input? In a nutshell, I am looking for a large group of socio-economic diversity. People from all walks of life who have different expectations, spending patterns and priorities. I think the 300ZX Club membership represents this type of diversity quite well.

 

All feedback is gratefully received and if an idea proves fruitful there may well be an opportunity for you to share in the revenue (subject to an agreement of course).

 

Many thanks for your time and I look forward to reading your responses. If you prefer to keep things "private", please use the PM facility.

 

Regards,

 

Dan

An interesting post Danny. It has been stated in the Times that during an economic crisis / recession, Mr & Mrs Average are not usually affected as drastically as business's are, unless of course they are involved in a redundency. They normally cut back on luxury items like holidays, meals out, theatre visits and home improvements / new furniture purely because the press is full of hard times ahead. Unfortunitely your market is the 'alternative' type of product where owners usually put their cars in the garage and sit it out which as you have stated combined with competition from overseas, has severely reduced your turnover and profit margins, and it is not set to change for some considerable time (at least a 12 month). Property (buy to let) which was a good bet is now out of fashion.The hunt for something that is recession proof will be difficult unless you become an undertaker or an Official Receiver which is not really an option. The idea product is something that people use regularly, and when it runs out, a re-supply cannot be bought locally and thus they comeback to you. sadly most of these type of goods have been exploited by the Chinese and very cheaply as well so the search for a wonder product I think will be difficult. Why not try to source cheaper similar products to those you already sell, and then give the customer the choice between quality and price. that may be an option to keep your turnover / profit bouyant.

Ah the million dollar question.

 

What business can I start that no one else has already sucsussfuly started and will make a load of money?

 

I doubt you will find the answer here, and anyone who manages to give you the answer is a fooking IDIOT for not doing it themselves!!! lol

 

At the mo, people are looking for cheap bargains, and also looking for ways to make money. If you can combine these then your onto a winner?

Well I think that now property prices are cheap Danny, it may be the time to purchase buy to let property, you just have to time it for when the market is at rock bottom.

 

If I had the money, I would purchase a high end flat in the centre of a big city, where there is no room to build any more flats. Also with travel being a expensive factor, being centrally located the need for travel is reduced and the fact that no other land is available to build on, means that supply is limited, so it is basic economics!

Hi Old Zed,

 

You make some interesting points in your post - many thanks!:)

 

It is indeed neigh on impossible to find a product that has not yet been "exploited" and doesn't require a massive upfront cash investment. You are also right in saying that businesses are hit harder than the average person on the street.

 

DTA-Motorsport, and the products we sell, are indeed quite "niche". If I had expanded into the Ford, VAG or even BMW and Citroen markets I probably would be slightly better off. However, it is very important to me that I know my market and offer the best possible product and customer service. At the end of the day, customers will remember you and come back for more purchases if they received good customer services. With the lack of brand and company loyalty these days it is customer service that makes the difference. Well, that's my opinion anyway.

 

With regard to sourcing and supplying cheaper products - I am in two minds about that. On the one hand it would probably boost turnover somewhat in the short term but how long would it be before "inferior" quality products start to "taint" the good reputation I've worked so hard to build? I don't really want to be known as a supplier of "cheap and cheerful" products. I know that is not what you were getting at but it is something that bears consideration.

 

In any case, thanks again for your comments - much appreciated. I look forward to hearing more of everyones thoughts.

 

Regards,

 

Dan

Takemetothepub: Thanks for your thoughts. I'm not looking to make a load of money - that's an entirely different plan I'm working on ... ;) Just need to generate enough supplimental income to pay the bills, etc. There are a lot of people out there who are looking to start a new business but don't have the time or expertise to do it. That's where I come in. I can offer the business accumen and they can share in the revenue it generates.

 

Topless: Yes, the property market is always interesting to play. We've already got a buy-to-let flat in Birmingham and we haven't been without tenants ever. We also have plans to buy another one or two flats in the near future but for now we don't have the cash for it.

 

Thanks chaps!

 

Dan

Takemetothepub: Thanks for your thoughts. I'm not looking to make a load of money - that's an entirely different plan I'm working on ... ;) Just need to generate enough supplimental income to pay the bills, etc. There are a lot of people out there who are looking to start a new business but don't have the time or expertise to do it. That's where I come in. I can offer the business accumen and they can share in the revenue it generates.

 

Oh in that case do you own any land/buildings or have any workshops for sale/rent in your area?

At the moment I would say "Think Green". There is a significant appetite for both recycling and off grid power generation. I have a few ideas for when I get made redundant ...

AndyP has a good point, a friend of mine has recently started a business supplying and installing solar power and wind turbines and according to him he's flat out. He is looking to get a another installation team. I thik he caught it just right really as "high energy prices" are a close second to the "economic downturn" whenever you switch oon the telly or radio.

I think Danny should start supplying parts to soup up Toyota Prius' :D

 

I agree the Green stuff has a lot of money being thrown at it, but the hypocriscy of it really pees me off. At work we had a shitload of solar panels installed, cos a manager wanted to look like he was being Green, an installer told us that the purchasers will get their money back on the install in year 2100!

repairing stuff...anything really....that will be popular....for example cobblers are always busy in a recession...oh and making stuff the chinese cant...like tea's, coffee's and cheese rolls :D

If I had some spare cash I'd wait a while until the house repossessions kick in and buy some cheap property. I'm also pretty sure that motorbike sales are going to rise a fair bit.

deffo look into some type of electrical repair, our secratary is south african and she has been in this country for some time now but she was extremely shocked at our throw away society. In south africa she says "everything is repaired till it can longer work"

 

in todays climate maybe we will think twice about throwing our knacked washers, dishwasher, tv's and son and think about the cheaper option of repair

ive also thought about an ebay buying business, im not too sure on buying or selling n ebay, and i would far rather ring someone and let them do the bidding collecting and posting and so on for a small fee rather than do it myself and get it wrong

Ebay is not difficult, finding the right product that keeps selling is difficult especially as postage which is so expensive these days bumps the price up considerably. I used to buy and sell old books which was a good earner but now that postage has rocketed, people tend to buy locally. I got a mate who buys photographic material from the States Ebay and sells them on the UK / Europe Ebay, very successfully, but it is knowing your prouct and what its worth.

I agree that perceived green business is the way forward, as is anything that helps cut fuel bills - selling LPG conversion kits, and/or doing the install for example, but that is something that may be done to death very quickly.

 

Got to look at what people cannot do without, but offer at a better price. I think for the short term at least, most people will cut back on spending in general.

The profit on the solar glass tube panals are quite high, as 90% are made in china the company that i use to supply them for swimming pools are in a nich market but the only part that the customer has to understand you still need a backup system ie a boiler

as the uk weather is not much good. A indoor 35ft x 16ft swim/pool/and a 8 person spa had 14 panels each panel had 8 tubes heats up very well but you get a dull day and and the out put drops you need to boost the heat up a bit with the boiler

personly i think there is no worse time to start a new venture as right now..its best to think hard how to trim and prune what you have or do now and make it more cost effective. From my end in running a roofing biusness this is what ime going to start doing to increase profit margins in the next 12 months..theres a few ideas i cant disclose as i dont want them out;)

1...better deployment of labour to cut out men standing about

2...better planning of daily routes to stop doubling back over the same ground thus saving fuel

3...being a bare faced liar and start playing a suppler off against another for better deals

4...offer a 5% discount for instant payment thus enabling me to pay my supplyers faster to get a 7-9% discount and profit from the floating 2-4% (it all adds up)

5...work out some kind of scaffold type canopy to cover my roofs so theres no down time when it rains as 30-40% of my wages bill is paid for men standing around in the wet weather

and loads more which i should of worked on years ago but i have no choice at the moment iff ime going to survive the next 18 months:mad:

Depending on the amount of vans you have put tracking system on them bearing in mind they sit in the van waiting for home time with out the engine running and the second thing to remember is the wastage you roofers have on materials !!!!!!!!!!!!!!!!

Depending on the amount of vans you have put tracking system on them bearing in mind they sit in the van waiting for home time with out the engine running and the second thing to remember is the wastage you roofers have on materials !!!!!!!!!!!!!!!!

 

;)

Gone are the days when you could say to the lazy fu!!s collect your tools and dont come back

Gone are the days when you could say to the lazy fu!!s collect your tools and dont come back

 

ahh the good ole days:D

I got taken to small claims court in 2001 for not paying one blocks wages they were on my office desk for 3months he would not come and get them he said is was my place to take them to him so i said you have a wk to collect them or i give them to a charity to wicht i did and the court won in my faver

I got taken to small claims court in 2001 for not paying one blocks wages they were on my office desk for 3months he would not come and get them he said is was my place to take them to him so i said you have a wk to collect them or i give them to a charity to wicht i did and the court won in my faver

 

what line of work was you in??

Construction