WHOLESALE OR DROPSHIPPING BUSINESS

Do you know, what is the most important and most crucial decision you will need to make when going for some dropshipping or wholesale business? It is to decide the product you are going to sell or export. The fact that some product has performed really well in the local market does not guarantee the same sort of acceptance in international market, or if you were able to offer really low prices to your domestic customers, you'd not find it easy to offer same prices to your international customers. So before you start, you need to sit down and think over these basic points.

i. Price
ii. Quality
iii. Competition
iv. Laws & regulations
v. Marketing

Price & Quality are vital:

Consumers who are buying from an international seller expect either price, which is not offered in their local market, or world-class quality, which they cannot find elsewhere (sometimes they are looking for both). To satisfy these customers you may need to modify your product or service to meet international standards before you start exporting.

Look for the Competition:

Second area of research should be the competition you are going to face when you start dropshipping or selling at e-bay. High or moderate level of competition will require plenty of patience, persistence and funds. If you think you lack in any of these three departments, choose a product from low competition zone. Remember competition is not something to judge by the number of competitors only. You need to have the product’s demand and supply in your mind when determining the level of competition.

Laws & Regulations:

Different countries have different set of rules for a variety of products. You can not supply alcoholic beverages in Muslim countries (in most cases); packed food items are not a good choice when exporting. Check for all these regulations or tariffs that can affect your trade.

Marketing & Advertisement:

Not only the product but your marketing skills also need to be world class if you want to make a mark in wholesale or dropshipping business. You should be familiar with new marketing trends and techniques to get started.

Conclusion:

Compare a product’s strengths and weaknesses in all of these departments before choosing any one product. If you don’t have the skill or patience to go through this process, you can take advantage of some very good artificial intelligence and analysis programs available, like the “market wizard” at wholesalepages.co.uk.

SOCIAL MEDIA FOR BUSINESSES

Although, ecommerce is a good way to expand your business, a simple social media site can be enough. The only thing you have to keep in mind is what kind of social media site you can use. There are a lot of social websites out there but some, like Facebook for example, seem to be built for the sake of posting pictures of girls doing silly faces and posting song lyrics to look deep and artistic. We have to keep in mind that even though the social networking sites are good for entertainment, social media should also be used for important things like expanding one’s business.

One good way of spreading your business is through Tumblr. A lot of Internet marketing professionals overlook Tumblr and take it for granted. They think that the website is merely an undervalued micro blog site. Though it’s true that Tumblr can be considered to be a blog site for leisurely purposes, it is much more than that. There is another side to this particular site that needs to be fully discovered. Tumblr was founded by David Karp and was created so people could manage a blog without the complication of a web coding. To fully understand Tumblr, it is easier to think of it as a scrapbook of information people want to share. The websites simplicity is one of its advantages. You can reach a broader and larger demographic through Tumblr. It also eradicates the need to write long and complicated posts. You are able to post a variety of content on your blog and even add a few bits of media such as pictures, videos and audio files.

The convenience of mixing different types of content is another advantage Tumblr has to offer and it’s a great way to attract potential customers and consumers. Keep in mind that using Tumblr does not mean you have to create a long and complicated piece of content that directly advertises your services. Rather, the idea is to post a unique piece that will link back to your website. This can be reached by adding a little teaser about a certain personal experience, something you’ve stumbled upon the Internet that you find interesting, or an overview of a project you’ve finished.

Tumblr also offers a sense of community that other sites do not. On Tumblr it is not important how many “friends” you’ve made. It is about making new connections and sharing your content with people who truly share the same interest.

A lot of companies have reached great success using Tumblr than they have spending time discussing on Facebook. Tumblr offers a simple yet great opportunity for Internet marketing. In order to start Internet marketing through Tumblr you have to understand that you are creating an identity and a name for yourself through your blog. You have to think carefully about the message you convey and the impression you leave upon other people.

Tumblr will be a great part of your own trademark for your brand or services. You have to keep this in mind every time you post. The most important thing that you always have to remember is that on Tumblr you’re seen as a person, as a human being and not just a business. So be civilized, be friendly. Making genuine connections is the best form of endorsement one can achieve.

RAPID BUSINESS SOLUTIONS

In its narrowest interpretation, factoring is a commercial product where a business entity known as a ‘factor’, purchases accounts receivable from any other business or commercial enterprise at a discount, and pays for these accounts receivable with immediate money. However factoring has come a long way since its original concept and today factoring is a vehicle which enables a business to raise quick money for working capital or to fund any other activity. Factoring is a useful financing product which is suited to the commercial needs of both big and small business but should not be confused with a bank loan from which it differs in several ways.

Factoring as a commercial practice has been in use for over 4,000 years. It is very common-place in Europe and many other parts of the world, and is fast becoming the preferred way of doing business in the United States. Factoring was widely practiced in the early part of the century in the United States, but largely restricted to the garment and textile trades. Interestingly, factoring played a role in American commerce in the days of the colonists, before the Revolution. European merchants would import raw materials like wool, timber, furs and cotton from merchants in the colonies. In those days of sailing ships, considerable time would elapse from when an American merchant shipped out his goods to the time he received payment. The delay would leave the merchant strapped for working capital. To circumvent this problem and to ensure smooth and uninterrupted trade, British and European merchants started making part payments to their American suppliers in anticipation of goods to come – a variation of factoring. This ensured that American merchants had enough working capital to continue purchasing and sourcing supplies without any hitches.

Businessmen began to appreciate the benefits of factoring from the 1960s onward when banks were becoming more regulated. Businesses began finding it increasingly difficult to get traditional financing which made factoring of accounts receivable the preferred way of funding and obtaining timely and adequate working capital. Factoring had another advantage – it looked at the credit worthiness of the customer that had to pay, rather than the business that raised the invoice. This did away with delays and possible refusals arising from necessary credit checks. Additionally, a factor purchased a company’s outstanding invoices for which they charged a fee. This meant the original company was unaffected by rising interest charges. Factoring transactions are currently estimated at $70 billion per year in the United States.

Today there are various facets to commercial factoring. The most commonplace is Accounts Receivable Factoring. In this case, a company sells its invoices to a factor for an amount that is less than the face value of the invoices by an amount mutually agreed to for discount and reserve. The reserve is essentially the factor’s safeguard against short payment. This could be due to delayed payment by the debtor or payment of less than the face value of the invoice. The transaction is completed with the factor making two payments to the seller – the first on purchasing the invoice from the seller, and the second on receiving the full value of the invoice, on time, from the debtor. On occasions, the payment terms might be spread over intervals. In such transactions, the factoring company might make a series of pro rata payments to the seller whenever the debtor pays an installment. Since the factoring company is the owner of the invoice/s, it assumes the responsibility for pursuing payment from the debtor.
One significant point is that factoring is different than a bank loan. Factoring is driven by the value of the financial asset, in this case the invoice/s value, where a company’s credit worthiness plays a minimal role. Factoring is also a commercial transaction where a financial asset has been purchased, unlike a bank which extends a loan.

Factoring is also applied to other facets of business like international trade where funding is done through international factoring. In these transactions, two factors are involved – the import and export factors – both of whom are members of international trade organizations. International factoring is used by almost all nations on the planet.

Other forms of financing that are related to factoring are Inventory Financing, Purchase Order Financing and Merchant Cash Advances. In fact there is no area of commercial financing where factoring cannot play a role. An additional advantage is that most factoring companies are flexible to new proposals and, unlike a bank, make quick, time-driven decisions.

Today’s commercial world has created a plethora of factoring companies all of whom have varying plans and offer different terms. Utilizing a broker such as EFS Capital can save you time and money. They can match you up with the investor that is right for you and your situation and provides alternative commercial finance when a bank furls its umbrella. Factoring is not the sole business of this company which offers services in the following

• Purchase Order Funding
• Inventory Funding
• International Trade Funding
• Merchant Credit Card Finance

EFS Capital will send you, on request, a free complimentary booklet on factoring and alternative commercial finance which will give you an insight of how this factoring company can partner your business growth. To know more of its various financing options, log on to www.efs-capital.com.

TIPS FOR YOUR PERSONAL CLOTHING LINE

At times you look at those designer dresses, then their price tags and think “The dress must have cost the designer considerably less than what he/she is demanding. Apparently, this business offers huge profit margins, why not initiate my own clothing line?” Chances are that the idea of starting your own clothing line must have crossed your mind at some point of time and that’s not a bad idea at all, especially if you have got some aesthetic sense and if you’re often getting the admiration for your dressing sense from the people around you. However, starting a clothing line is not as simple as it may sound. True that at the end of the day, it’s just designing some clothes and getting hold of a place to display these dresses. In reality, you have to do a lot of planning, financing and hard work to establish yourself as a renowned business.

Initial Planning:

As any other business, clothing business needs lots of research and planning. Keeping in mind that this is not really a unique business idea and numerous people have tried their luck in dress designing business but just few of them managed to make it big. Note that those who make it big are not necessarily the best dress designers of all, they are actually good designers having very good business and marketing sense. Which means dress designing is only half of what you need to own a successful clothing line. Therefore, you must start with some research and planning in your respective markets to see if there’s any scope for the kind of designs you’ve got in your mind.

Designing & Manufacturing:

After the planning, now comes the design and manufacturing part. For a starter, it’s often hard to convey your designs to the tailors or garment manufacturers. Therefore, you must ask them to make a couple of samples and see if they were able to follow your guidelines. In addition to that, you must go for the highest quality of fabric and stitching for your designed clothes. Don’t go for an in-house production straight away, it will cost a lot more as compared to outsourcing.

Marketing:

Once you’ve put the last touches on your clothes, it’s time to market, and that’s what really makes the difference. Usually dress designers spend huge amounts to market their clothing line. However, not everybody has got such huge funds (though you can always borrow if you are confident about your designs). Giving ads in local newspaper and fashion magazines is probably the cheapest way to reach your targeted audience. Other than that you can use your public relations or get in partnership with some garments store to display your clothes.

RISKS AND CHALLENGES OF INTERNATIONAL BUSINESS

International businesses have to face risks and challenges at many fronts. Some are similar to the risks and challenges a domestic business confronts and some are unique. Even the challenges that are similar by definition differ in nature. For example both types of businesses have to face financial challenges, but an international business will be facing many factors related to global financial markets that don’t affect domestic businesses as much. They are more of a challenge in nature than risks and most of them can be handled through proper planning. Keep reading to understand these challenges better.

The challenge of international planning & strategy:
The first challenge for an international enterprise is to make a global strategy and then implement it. The managers and those at decision-making positions often find it difficult to change their thought pattern, which is not used to work in global paradigm. There are many international businesses but just some of them have truly adopted a proper global strategy. Though the situation is improving with more and more trained graduates and professionals taking on the management roles. Nevertheless, international business management requires extra ordinary management, foreseeing and leadership skills.

Financial and economic challenges:

It starts from arranging the funds to start international business and includes everything such as fluctuation in exchange rate, global economic crisis (or some economic crises in the host country), shift in oil prices, global inflation or tariff barriers imposed by the host government, also the export related policies of your own government.

International Politics:

Political know-how is a must for everybody but it becomes all so important when operating at international level. If some policies were suitable for your business, a change in ruling party can bring drastic changes in those policies. Political chaos will bring down the economy and with that your business. To prevent your business from such negative impacts, you need to make sound political judgments.

Environment, natural disasters and warfare:

Many multinational businesses have to face serious opposition by some environment friendly organizations. Citizens are more concerned about air and water pollution these days as it is becoming a serious threat to their health. Some natural disaster like floods and earthquake, or some kind of civil war breaking out in the host country is also in the list of possible challenges. A new challenge that an international business has to bear now days in some specific countries is the threat of terrorism.