Podcast Summary
Focusing on a niche market leads to business success: Finding and catering to a specific, passionate audience can lead to a profitable business and strong customer loyalty
Finding a niche market and catering to its specific needs can lead to significant business success. The entrepreneur we discussed, Brad, has built a profitable business selling Warhammer game toys to a dedicated and passionate audience. Although the UK population is approximately 70 million, there are likely only around a million Warhammer enthusiasts. By focusing on this niche market, Brad has created a thriving business with strong customer loyalty. This strategy, known as "niches within niches," has been a successful marketing approach for many entrepreneurs, as highlighted by marketing expert Dan Kennedy. By catering to specific, passionate communities, businesses can differentiate themselves and build a loyal customer base.
Considering Buying an Established Ecommerce Business: Buying an established ecommerce business can bring significant revenue and customer growth. Challenges include negotiating price, managing logistics, and monitoring cash flow. Learn proven strategies at Entrepreneurs University for a monthly fee.
Buying an established ecommerce business can be a smart move for entrepreneurs looking to grow their revenue and customer base. This individual, who studied business and gained entrepreneurial skills, has started trading again with significant monthly revenue and is now considering purchasing another ecommerce shop for around £20,000. This business comes with a valuable customer list, impressive sales history, and stock worth over £35,000. However, challenges arise such as negotiating the lowest possible purchase price, managing logistics, and monitoring cash flow. To help others navigate the process of buying businesses, the individual offers an online training platform, Entrepreneurs University, where they can learn proven strategies and grow their business for a monthly fee of £49.99. This individual's success story demonstrates the potential for significant growth through strategic business acquisitions.
Finding profitable niche businesses on Facebook: Identifying and buying into niche markets on Facebook can lead to profitable businesses, even for small entrepreneurs, with potential for scaling and hiring staff.
Identifying and capitalizing on unique opportunities within niche markets can lead to profitable businesses, even for small entrepreneurs. The speaker shared an example of buying a Warhammer stock business from a motivated seller on Facebook, which could potentially double their profit margin. The business, which has been running for six years with revenues from £2k to £4k and no staff, is in the Warhammer miniatures market, a niche that is not large enough for big players like Sainsbury's and Tesco but attractive for entrepreneurs looking to make a profit. The speaker found the opportunity on Facebook, where collectors sell and buy their stock, and was able to negotiate a potentially lower price due to the seller's motivation and part-time status. By purchasing a larger stock, the speaker aims to scale the business and potentially hire part-time staff, moving beyond buying and selling individual items on eBay.
Negotiating the Price of an eBay Store and Its Stock: In a slow market, buyers may offer to pay less than the asking price for an eBay store and its stock, but the store's value lies in its reputation and consistent sales.
In a slow market, negotiating the price of an eBay store and its stock can be a lengthy process. The seller may be asking for a high price, but it could take two years to sell all the stock. A potential buyer could offer to pay half the asking price upfront and the rest over time. The value of an eBay store lies in its reputation and consistent sales, but it's not as valuable as the seller may think. The biggest player in the industry, such as Troll Trader, buys and sells a wide range of niche products, including Warhammer miniatures. Games Workshop, the manufacturer of Warhammer, sells to online retailers like Troll Trader to reach a wider audience and cater to the diverse interests of hobbyists. Negotiating a deal involves understanding the value of the store and the seller's motivations, as well as the potential for future sales.
Starting an eBay Business: Cost Considerations: To build a profitable eBay business, follow the 'times five rule' for expenses: 20% for product, 20% for overhead, 20% for staff, 20% for VAT, and 20% for profit. Consider part-time work or Kickstarter for free labor.
Starting an eBay business involves careful planning and cost consideration. The speaker emphasizes the importance of buying stock at the lowest possible price due to the high overhead costs of taking photos, sorting, listing, and packaging items. They suggest following a "times five rule" where 20% goes to the product, 20% to overhead, 20% to staff, 20% to VAT, and 20% towards profit. Additionally, they recommend considering part-time work or utilizing resources like Kickstarter for free labor. The ultimate goal is to build a successful business that can generate a substantial profit, which can then be reinvested for further growth.
Starting a business during uncertain times: Opportunities with the UK government's Kickstarter scheme and brand building: Explore gov't Kickstarter scheme for hiring staff, build a strong brand through digital channels, and juggle tasks with manageable steps.
Starting a business during uncertain economic times, such as the COVID-19 pandemic, can present unique opportunities. One such opportunity is the UK government's Kickstarter scheme, which allows businesses to hire new staff for six months with the government covering their wages. This not only helps cash flow but also forces growth. Additionally, building a strong brand through a website, social media, and even a YouTube channel and podcast are essential for reaching and retaining customers. It might seem daunting to juggle all these tasks, but finding just an hour a week for a YouTube video and starting a podcast are manageable steps. Remember, your current company is your survival, your future company is your thriving business, and your media marketing company is your YouTube and podcast platform. Embrace both established and emerging marketing channels to reach your audience effectively.
Focusing on a niche on YouTube and collaborating with larger channels can lead to faster growth: Niching down on YouTube helps the algorithm target the content to a specific audience, while collaborating with larger channels expands reach and builds a customer database.
Specializing in a specific niche on YouTube can lead to faster channel growth due to YouTube's algorithm understanding and targeting the content towards a specific audience. Collaborating with larger YouTube channels and sponsoring their content can help build a customer database and increase visibility for a new channel. Additionally, using financing methods like vendor finance or interest-free credit cards can help minimize cash flow and maximize profits when starting a business. Overall, focusing on niching down, collaborating, and utilizing financing methods can contribute to the success of a business or YouTube channel.
Starting a Warhammer business without using the brand name: Create a niche business, manage cash flow with accounting software, and apply to share progress on podcast in 12 months.
Harry, a 22-year-old entrepreneur, shared his successful experience of starting a business selling Warhammer products without directly using the Warhammer brand name. He recommended creating a company called Nomad Merchant, which he described as a "nomad" or "merchant" in the industry of War Games. Harry emphasized the importance of managing cash flow using accounting software on a smartphone and encouraged listeners to apply to be on the podcast in 12 months to share their progress. Additionally, Harry expressed his gratitude for the opportunity to share his story and encouraged listeners to check out Capital on Tap for business financing and travel rewards. Harry's story demonstrates the potential for success in a niche market with careful planning, effective branding, and smart financial management.
Empowering Business Growth through Shared Knowledge: By listening, rating, reviewing, and subscribing to this podcast, you're not only learning valuable insights but also contributing to a community dedicated to business growth.
Key takeaway from this podcast episode is the importance of sharing knowledge and helping others grow their businesses. The hosts, James Sinclair and his team, create content with the goal of assisting businesses in their growth journey. They invite listeners to support their mission by rating, reviewing, and subscribing to the podcast. In return, the podcast can reach a larger audience and help even more businesses succeed. So, by engaging with this podcast, you're not only learning valuable insights but also contributing to a community dedicated to business growth.
