Do you need a big inventory? What about advertising costs?

You don't have to go out and borrow £30,000 to get started in a computer business.

You don't have to have a big storefront building or much inventoty; in fact some big mail order firms got started by doing the following:
First, make up a display advert. Advertising can be simple. You don't need a £2000 full page advert in a national computer magazine. Start with a catchy, typeset, quality advert that you can display in supermarkets, computer user groups, at the community college or in local publications. If you want to explore computer magazine advertising, try The Computer Shopper or similar publications. Their adverts are reasonable and it's likely you will get a good response.

If you do have the money to invest in full page classified adverts, go for it, as the rewards can be greater.

There are some big mail order companies which operate out of a small office suite. They don't inventory anything. They are a manufacturer's rep and place fancy ads in magazines, advertising bundled computer deals. They provide a free telephone order line for people to call and order with a credit card. Then the rep calls the manufacturer and orders the systems to be dropshipped to the customer.

Many manufacturers will drop ship to your customer. Ask about their dropship policy when you call them. This method of selling gives you the benifit of offering your customer numerous products without the need of inventory. Necessary product information can be obtained from the manufacturer or distributor in the form of catalogues, brochures and fax information.

If your business is operating out of your home it would be a good idea to have a system on hand to demo. People like to see what they are buying. A friend of ours got his start in the computer business by buying one system at a time. He would buy one, sell it, and buy another one, always upgrading and making money on each system. The profit he made not only allowed him to buy a better system, but also provided finances to buy other items for resale.

Some companies can provide your customer with an onsite warranty so that if something should go wrong with their computer your customer can call a free telephone number and get hardware support from the support people. However, if you have the ability to fix and upgrade systems yourself, there is more profit potential for you.

Use the talent you already have. Think cutting costs, but not cutting quality in a product you want to sell. As for test marketing through advertising, start within your means.

ALTERNATIVE ADVERTISING

Modem advertising can be a great option. Most BBS's have some type of message base which allows you to post items you want to sell. Using this type of free advertising will keep your advertising expenses at a minimum, allowing you to take in more profits for your business.

Many of the larger BBS's may have a subscription. Some only want a donation to help offset the cost of extra phone lines used for their board. With a subscription they may offer services such as Echo Mail.

Echo Mail messages are posted for other users to view, and can be sent to as many as 100 or more BBS's in the area, and even to major cities outside the U.K.

If you have a favourite BBS which carries Echo Mail, we recommend you supporting this BBS. Using this type of advertising could net you hundreds of pounds a month or more.

BIZnet is a new message echo network that is a sure winner to advertise your product or services on. BIZnet welcomes businesses who want to advertise. Some of their message echos are ported to the Internet on CompuServe and other national networks. There is even a BIZY-LINK which sends your messages to Canada, USA, Europe and other countries at no additional cost to you.