The business is selling restaurant/cafe/bakery supplies like baking machines, cooking utensils, restaurant tableware, restaurant/cafe furniture and disposables. How can I get started without holding inventory first?
Long-time entrepreneur and consultant here. My experience is in software and tech but the below is applicable to any business.
Some thoughts and questions for you:
- In a commoditized market, price, speed of delivery, better customer service and trust from years of operation are common differentiators. How can you differentiate as a new entrant? Maybe focus on a couple of the products you listed to start ("niche down"), and do those products better than incumbents. Make that your obsession.
- Are there opportunities to innovate with your supplier relationships? Reducing how much and how long you have to hold inventory is of course advantageous. If you can reduce the amount of space you need for holding inventory, you can pass savings on the the customers.
- Speak to potential customers, what don't they like about their current suppliers? Speak to 100 restaurants/cafes/bakeries and look for common answers. Build a business around the most common answers with the highest revenue and growth potential. Do this before spending any money on inventory. Read up on "Customer Discovery" to learn more.
Good luck!
Answered 3 years ago
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