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Hereʼs how to determine the numbers:
9
0 As I have said before, many people start busi• nesses based on their professional (or hobbyist) experience. This is the first place you need
A to look for numbers. If you have worked as a
U manager, you have certainly had access to figG
Y
U ures. You know what things cost. Write this information down. If you are a hobbyist, your
S
T numbers will be high because you have not
2 bought in quantity. Call the people you have
0 bought supplies from and ask what prices they
1 would charge for bulk purchases, say a hun4
dred or more. If you have no background in
what you plan to sell, youʼll have to make a lot
of telephone calls to potential suppliers.
much capital you will need, assume youʼll pay
cash on delivery. Itʼs best to calculate your
money needs on a worst-case scenario – what
if no one buys what you have to sell? What will
it cost to open your doors for business?
While youʼre asking about prices, also ask
about terms. Will you have to pay cash or make
payments over time? But to determine how
continued..
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