« One is the loneliest number | Main | UX - 2 letters that are vital to your website »

Starting a business: Where is the money?

- Steve Sink is managing partner of Phoenix Affiliates Ltd.

Many of us have a dream of owning our own business. However, that dream often will vanish because you cannot get the cash or don’t know how to get it. However, there is an alternative for those who are willing to take the risk by betting on themselves and their ability to sell.

Phoenix logo only

Pay In Advance: The cash comes from their customers. Owners can sell a service or product, using various enticements to secure a partial or full payment upfront. This model typically applies to service-based businesses.

Advance Deposits: Customers are requested to provide deposits in advance for services or products.

Subscriptions: Customers pay in advance or a product or service which will be delivered at a later date. This is usually used when selling a consumable.

Broker: Act as an intermediary between two parties.

 

The Good and Bad:

1. These approaches do not typically apply to brick-and-mortar situations,  which are much, more capital intensive.

2. These approaches have limited growth potential and will require a model change and capital for sustainability.

3. They rely on the owner’s reputation and integrity.

 

Good Luck,

Steve Sink

CBI, M&AMI

ss@phxaffiliates.com 

Comments

The comments to this entry are closed.

« One is the loneliest number | Main | UX - 2 letters that are vital to your website »

Technorati Bookmark: Starting a business: Where is the money?

This site is intended for informational and conversational purposes, not to provide specific legal, investment, or tax advice.  Articles and opinions posted here are those of the author(s). Links to and from other sites are for informational purposes and are not an endorsement by this site’s sponsor.