How to Start a Business
The following is a simple step-by-step plan for starting a business. It’s presented in 3 parts. Below is part 3.
7. Setting up Shop: Example ““ Joseph started with a used TV monitor, his own game console, and a stack of games he hung on the cart. He worked with the Mall’s designer to produce a sign. He got a business license. The mall required him to be open all hours the mall was open so he manned the cart with his wife and a gamer friend. They each took time for a share of the business proceeds. They had the TV running with a game that people could come up and play which created interest and caused his target market to stop by and see what was happening.
8. Determine how to best reach your target market: Example ““ Again, Joseph didn’t have much money to advertise. He printed up flyers and paid kids in game rentals and trades to hand them out at school. Also, he created a weekly video game contest where he posted the highest scores alongside the name of the gamer. It didn’t cost him anything, and it guaranteed built in traffic to his cart while the contest was running. It got the word out fast, and cheap.
9. Results / Record Keeping: Example ““ Joseph’s business took off. In the first three months (he timed his opening to capture the Christmas marketing period of October, November and December) he grossed over $30,000. He kept close record of what had been sold, traded, rented, etc. and tried to stay on top of the hottest inventory to maximize sales of what was in demand. After that first three months, he’d outgrown the pushcart and moved into a small vacant in-line space in the mall. The mall management was happy to oblige because of the traffic it generated. After the first year the shop had generated $150,000, and Joseph expanded into other locations. At the end of 5 years, Joseph, his wife and friend got an offer from a larger gaming conglomerate to buy out their 5 locations and $500,000 per year volume. They received a generous cash and stock offer, got out of the business, and enjoyed life. Joseph had literally turned his passion for gaming into a highly profitable business and a comfortable retirement nest egg.
