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arnoldj1979
04-15-2010, 07:26 PM
Hello, let me start by expressing how informative this forum has been in the couple days I've been reading here.

I am currently in the planning/buildup stages of launching my cutlery business. I have already written a 4 page business plan. I have very limited startup capital, so I am am forced to begin this endeavor with flea markets due to the very low capital required to sell at them. Keep in mind, I definately don't want to stay working as a flea market vendor it is (hopefully) just the beginning. I have no real business and accounting experience, but I have been blessed with alot of common sense, very good people skills, and I learn very quickly.

Now I am into the launch planning and inventory build up stage. I guess you could call it a stage as I have been very systematic, beginning with learning basic business accounting and how to be efficient about retail markup etc.

I am looking to turn a profit quickly in the beginning so I can reinvest profits into expanding the business. I will be specializing in name brand cutlery both collectible like W.R. Case and Son's brand knives and functional like Smith & Wesson brand tactical knives. I feel I have a very good chance of being successful due to my location (Semi-Rural Kentucky, lots of farms and trade businesses, and only a couple miles from a large Army installation) and the fact that there are no specialty knife outlets anywhere in the area.

I try not to get to stressed out but I can't help but be worried especially since I'm investing so much time, effort, and personal funds into having a great launch. I really need it to succeed as the job market here is poor and like most Americans, I have another mouth to feed as well, so it doesn't help curb the stress and anxiety I am feeling.

I have researched EVERYTHING, or so I hope. I've saturated my brain so much that I can't fall asleep at night due to thoughts money, advertising, will this work or am I setting myself up for failure, etc.

Anyway, I would appreciate any thoughts or constructive information regarding this as I am commited now with both time and money.

Also, I have a relationship with 4 wholesaler distributors that I have been ordering through. The whole business of wholesale seems so flakey and secretive. I keep second guessing myself about whether or not I am getting TRUE wholesale prices. Please understand that I have VERY limited buying power so I'm trying to really make my initial orders count so I can quickly add profits into getting bigger orders. Any insight on this would be most welcome.

Also, I would love to get ideas from any of you that also started or are currently dealing with flea markets as vendors. Tips etc would be wonderful.

Thanks so much!

Spider
04-16-2010, 09:54 AM
Congratulations on taking the entrepreneurial plunge, Arnold. You will absolutely enjoy the feeling of freedom and growth, once you get past the feelings of doubt. Once you make that first sale and you get someone else's money in your hand, knowing that you have provided value for that money. It's an exhilerating feeling.

You seem to have thought this through very thoroughly, and that is great. The more you do, the more you will learn. You don't have to know everything before you start.

Regarding the wholesale prices, don't worry about it for now. As long as you are sure you can sell the items for more than you paid, that's the name of the game. As you gain experience, you will likely find lower wholesale prices and cheaper but similar items. You may even find yourself heading in the other direction - higher prices for better quality goods, allowing higher markup. All this will come as you learn your business from the inside.

Well done. Keep going. And don't look back! Success is yours for the taking!

arnoldj1979
04-16-2010, 12:42 PM
Thank you so much Spider! Your words are very encouraging and thats really what I need right now!

As far as my wholesale issue. I called W.R. Case authorized dealer department and was given some information on an authorized distributor based very close to me. I did some research and this distributor has been in business for over 30 years. They also have VERY strict requirements for opening a dealer account with them, which gives me peace of mind that they don't just sell to any John Doe claiming to be a retailer. I should recieve word soon regarding an account with them. I'm praying it works out, as the minimum order requirements are only $100 with free shipping on $1000 or more. $500 is around my budget for inventory buildup until I can reinvest profits into expanding that.

I have gone to the swap meet grounds in my area 4 times now while it was closed and scouted what I consider as great locations. I can't help but feel like I will be seen as just your run of the mill cheap item vendor. These are my ideas how to overcome this until I can "hopefully" do well enough to move up to a mall retailer kiosk.

1. I plan to proudly display the trade mark logo's of the items I will be selling, prominantly (please let me know if I can legally use the names of the companies who's products I sell)

2. I have banners being created with my companies business name displayed "Heartland Cutlery" "Premium knives at working man's prices".

3. I have business cards being created and I will be making "Fun Facts" sheets with interesting and informational tid-bits of information regarding the high-end cutlery I will be selling. These will be passed out to buyers and passerby's.

4. I am going to visit local gun shops in the area and ask if I can leave business cards with them telling there customers about me and my products. (Smith and Wesson gun owners may be interested in Smith and Wesson cutlery to compliment there collection)

5. I will be trying for a very professional booth appearance, using Knife display cases and "eyecandy" to make my product more appealing to potential buyers. (Instead of sitting my military grade knives out on a bench, maybe using camouflage backdrops and a fake animal skull to give them an appealing appearance and hopefully giving the impression of a rugged, well made, tool. Which of course these will all be name brand knives and not chinese knockoffs)

6. Displaying a genuine and sincere love for the items that I sell. I'm not just selling my knives. I'll be selling my personality along with them. This will include me researching company backgrounds and trying to be as knowlegeable as possible about my products.

I'm very passionate about seeing my business succeed. I try and focus on the positives by reading other small business success stories and not on the ones who fail. I have to bite my nails and tell myself it will all work out as I watch my bank account slowly dwindle from buying things like displays, media, tables, chairs, and everything else that is going into making my business appear as professional as possible, even though I must start out as a swap meet vendor.

I'm looking for any constructive commnts and or critisism regarding how I'm going about this.

Again thank you so much for your encouraging words Spider! You have no idea (well I guess you do now that I see your a business coach!) how much that kind of talk means to a nervous and scared new business owner!

arnoldj1979
04-16-2010, 12:48 PM
Also, I have had my business name research and there are no other businesses in Kentucky operating under "Heartland Cutlery" I am a sole proprietor. Can I just go ahead and begin operations under that assumed identity. I have already filed my DBA and I guess reserved it? Not quite sure how that works. ANy info on that will help, thanks!

KristineS
04-16-2010, 02:19 PM
Wow, sounds like you have a well thought out plan, so kudos to you on that. You're miles ahead of a lot of people who start businesses.

I just did a quick Google search on DBA Kentucky and this is what came up:

Corporations, a non-profits, LLCs and partnerships (general, limited, and limited liability) must file a Certificate of Assumed Name with the Kentucky Secretary of State.

Sole proprietorships should file an assumed name certificate with the county clerk's office where the business is located.

There is also this information (http://revenue.ky.gov/business/register.htm) from the Kentucky Department of Revenue.

I also found this business portal (http://kentucky.gov/business/Pages/default.aspx) from on the Kentucky.gov website. It might be of help.

arnoldj1979
04-16-2010, 03:54 PM
Thank you Kristine,

I really am putting alot of time into trying to cover all of my bases. Thank you for the link to the Kentucky Revenue site. I haven't registered with them but I will be taking care of that ASAP. My initial launch is scheduled for a few weeks from now. I should have all of my media organized and my final booth layout complete. My big concern now that my initial strategy is planned is to work on market research for my area. My product is touchy in that some consumers will consider it a need (a good pocket knife goes a long way with tradesman etc) and others will consider them wants I guess. I've been known to impulse by pocket knives in the past at swap meets based soley on it's presentation.

Any recommendations on how or where I should start a more in depth market analysis?

Again, I'm doing this because the swap meets and knife conventions are a way for me to generate profits with low overhead costs. My next goal will be a Mall Kiosk or something similar until I can afford and have a client base that could support a brick and mortar.

Thanks for the great help!

dynocat
04-23-2010, 12:55 AM
In depth market analysis can be pretty expensive when starting out. While it would be nice, if you can afford the expense, it shouldn't take long before you will see where you need to direct your marketing.

Have you checked out any online knife resellers/retailers to see the customers they are targeting? From their categories, site layout, photos and text you should get some good ideas.

You may want to have your booth visitors and buyers sign up for an emailing list. It's surprisingly easy to collect a lot of names in a short period as long as you assure them you won't pass on their personal info or spam their inbox. If you use individual sign up slips it would be helpful to have a list of interests, i.e., cooking, hunting, fishing, camping, woodworking, etc., they could check off. That would also help you determine your target market.

Sounds like you are very well prepared. Along with sharing your product knowledge, be sure to listen to what visitors to your booth have to say. You'll learn a lot.

btw, we've been doing Farmers Market and Art/Craft fairs for over 10 years with handcrafted kitchenwares. These are some of the things that work for us.

Paul Elliott
04-25-2010, 11:43 PM
You may want to have your booth visitors and buyers sign up for an emailing list. It's surprisingly easy to collect a lot of names in a short period as long as you assure them you won't pass on their personal info or spam their inbox. If you use individual sign up slips it would be helpful to have a list of interests, i.e., cooking, hunting, fishing, camping, woodworking, etc., they could check off. That would also help you determine your target market.

"Your list is everything!" from the "88" below. It is your most valuable business asset because with it you are permitted to begin the relationship-building process -- know, like, and trust = repeat buyers. "Most valuable?" Indeed! ... If you use it skillfully and well.

In exchange for their information (get at least name, address, cell phone, and email) have a drawing for a couple of nice pieces. Emphasize that they do not need to be present to win. Enter all the data in a spreadsheet or database and begin using it right away carefully but persistently so the remember who you are and either want more or want to get out.

With that information you can send out notifications of the places and dates where you will be. You can announce special inventory and hard-to-find items to attract aficionados and keep the "buzz" going about your business and products. Find the scarce items, the sought-after, the antiques, etc.

By all means get a website up and running with announcements of your itinerary and the unique items, etc., you have or will be displaying at your events. From you drawing entries you can email the participants links to your website and special contents. That is where you can put special information on cutlery care, "How to sharpen your knives," etc.

Another special thing you can offer at your shows is professional knife sharpening while-you-wait. Make it free at first and maybe at every event as a "get to know us" attractant.

DISTINGUISH yourself from all competition at events or in kiosks. Before long you will have more business than you can run off. ... If you do it persistently and consistently!

Soon you will be attracting your own following to the events where you go.

Keep up your excellent work, Arnold!

Paul