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You need a reasonable profit that allows you to build up reserves. If, for instance, you buy several items and you do not sell all, you should still make a profit. Even when you start selling them at a discounted price.
It differs on the type of business but it is a good general rule that the selling price should be preferably 8 times more than the total costs. But certainly not less than 4 times more.
In the potential check in lesson four we have left the general cost out. So, if in that initial check your selling price is only 4 times more than the costs it will be very difficult to earn an income. In our coffee bar example this is the case and that means we have to look into complimentary items to make more profit.
In the coming days you will probably think “oh I should have listed that as well”. Fine you can do that, just add it to your notebook. In lesson 13 you will make a more final SWOT and even than you can still add to it later on. You change and the world around you changes. The SWOT is a great guide but it is not set in concrete. Best is to make one every year. And when drastic events occur (like Covid-19 for instance) updating your SWOT is very helpful to give you direction.
As a general rule, yes. But it also depends on what you sell. There are businesses that sell goods online without having bought anything. They sell what others have on the shelf and focus on marketing through a webshop. With a quality partner that can work very well. These businesses own a minor part of the supply chain but have solid contracts with others within the supply chain. Others who work like this and offer services are AirBnB and Uber for instance.
That can be unsettling. You have an idea already why and how people would use your product. Try to let go of what you thought and see what this analysis shows you. Are there details you should change? Is your potential customer totally different? Or is what they would like to use it for different? Better to know it now so you can make a good decision about for which problem you can create a solution. If it makes you really uncertain, find a friend to share with and try to brainstorm together!
With internet and social media people have 24/7 access to information and products they can buy (if connection works of course). You have to be out there with them. But also you have to deliver good service so customers don’t share negative information about your product. Keep your eye closely on this part of your marketing mix for that reason. But also to keep in touch about needs you could fulfil.
To be short, yes! Not a website perhaps but you will create trouble for yourself if you do not buy a domain name. If the name is in use you can try variations. Magazines for instance often use magazine behind their brand name. There are many new extensions as well that might help you out. Facebook and other social media are not a good alternative. You do not own these pages like you would your own domain. Emails with your name instead of gmail behind the . makes growing your business easier as well.