Nowadays people in the business industry aren't thinking straight. As a teenager, I have come up with a plan that could almost be flawless and high profitable making. Instead of selling essential equipments for schools, facilities, factories, job-sites, etc, why not just rent it to them instead of selling the equipment? If they agree to sign the contract then for sure, you would make a profit in the long run. The start-up cost to run this sort of business depends on you, whether you want to start a low budget as renting out 5-10 equipments then that's fine. Because once you find out that this strategy will work, eventually you will decide to change your budget so increase profit gains. Here's an excellent example of why this strategy works. Almost all casino's have machines that shuffle decks automatically but you just have to deal them, these shuffle deck machines are rented out to casino's and get charged every month with a contract of one year. Just imagine how many tables are average in a casino using the shuffle deck machine. So perhaps we could find out what kind of target company would require equipment needs and rent it to them.
In today's society, technology services have become very poor. Whether it's cell phone or computer services, it's just not enough to meet the customer needs. Suprisingly, a monopoly is occuring in this one company. No one has even decided to open up an all around technology service repair store. There is only one store in BC that does this and I must say, their services are absolutely terrible. Sure their services are terrible but they get some of the job done and still meet customer needs because they have many employees working there. However, I would like to twist this type of strategy, if you hire too much employees, you're expenses will make it break-even but, if you were to hire people with experience in repairing devices then this would cut down you're expenses. It's important that every business always has a substantial customer service because you want to make customers satisfied.
Renting out equipments is very smart for a business person because renting is affordable to a lot of people. It will be a high start up cost to get all those equipments to rent out and you will need a large amount. Advertising wouldn't be too big of a problem since rentals don't require a lot.
ReplyDeleteI think the 2nd idea is great too because people are always clumsy with their music players or cellphones so having this company will help out their needs. I like how you explain the fact there the more employees there are, the more expenses there is going to be.
-Anna Zhu
The first idea is definitely profitable. I'm assuming the contract works like a cellphone contract where if you opt out, you pay a portion of each month that you have left. Once the equipment is returned, you can put it on the market and try to get as much as you can back.
ReplyDeleteIdea number two would be something "techies" like to do. It would be hard to hire workers because if they have the background, wouldn't they want to work for themselves instead of someone else?
I really agree with your first venture idea. By renting out equipment, it guarantees your product back and then it goes through a cycle that allows you to enter a profit cycle using only a single product. Each product would have a life span but even then, it'd be much worth it in the long run.
ReplyDeleteI agree with Matthew ^ on your second venture. It might be difficult to find trained workers in that field as they would be self employed or be working for a large corporation (e.g. sony)
Renting equipments is a risky idea. The reason is because a contract can harm you or help you so when writing a contract, you might need a lawyer to triple check before you can lend anything out. Another problem is that the start-cost might be quite high unless you are 100% confident that you would make enough then go ahead.
ReplyDeleteI have to say that it's a good idea. Not many stores in BC has that service for all the technologies. The only problem might be that the employees. Those employees who can fix many types of technology are quite expensive. Unless you charge your customers a bit more than usual which would make your customer numbers go down.
I like the first idea because it is very creative. The fresh idea will definitely attract a high consumer base. During school times people don't really have much to do so they most likely will go with this venture idea. Some problems might arise are consumers taste.
ReplyDeleteThe second idea is very appealing because it is fresh, new and smart. Personally I am a student myself and I would love to use my money on this because I find it useful. Some problems that may arise are promotions because it is difficult in school.
The only problems i see with the first idea would be start-up costs and advertising. Equipment can easily go into the thousands and trying to break even may be difficult.
ReplyDeleteAs for the second idea, it could be viable but sometimes staff is hard to come by when it comes to technology, since they would already be employed for the most part or not have much experience in the field.
- Tim
Your first idea kind of grabbed my attention. It is actually a very good way of making some money. This way more than one person can rent the same product. You don’t have to buy a new product every time you sell it. But the only problem I see in this is that it could be a little hard to rent the same product on the same price. You might have to start dropping the prices after the first time and this won’t end up with a lot of profit for you.
ReplyDeleteI think your second idea is quite appealing because it’s true that there aren’t many store in BC has that service for all the technologies. So it could be a very successful business but the only problem is high start up cost such as paying the employees, equipment charges etc. If the capital is not enough, business could suffer from it.
The first venture idea sounds very promising in terms of profitability but I was just wondering what kinds of equipment were you planning on renting out? Could you afford the start up cost? As I am guessing, it’d be kind of high to purchase all the equipment first and rent them out.
ReplyDeleteWith the second venture idea, it’s good that you’ve found a market lacking in their customer service and all around service expertise but how and where would you find these employees with experience?
Overall, I think you have very original, great ideas Josh. Good luck with your venture! :)