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Online Factory Direct

About Startup Costs

The startup costs provided in this database include an approximate financial investment that will be needed to start the business. This is generalized information and should only be used as a yardstick to determine business startup costs. Your investment will vary based on factors such as equipment, transportation, licensing and permits, operating location, working capital and initial marketing and advertising budgets. Remember a successful entrepreneur is one who carefully researches and plans every aspect of a new business venture, including the financial investment needed to start a business and the working capital required to achieve positive cash flow.

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Business At A Glance

Online Factory Direct

Startup Costs: $10,000 - $50,000
Home Based: Can be operated from home.

About

Franchises Available? No
Online Operation? Yes

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Don't like middlemen? Eliminate them with a factory direct business.

Business Overview

In North America there are thousands of homebased manufacturing businesses. Two of the largest challenges facing these entrepreneurs are marketing and competing against much larger and better-financed competitors. Herein lies the business opportunity. Develop an online 'factory direct' Web site that features products for sale manufactured by these homebased entrepreneurs. Not only will you be giving these small manufacturing businesses a fantastic marketing and distribution channel, but you will also be giving them a chance to compete for business without having to blow a bundle on developing and marketing their own Web site. Products sold via the site can be shipped to purchasers directly from the manufacturer, thus eliminating the need for warehousing inventory. In exchange for providing manufacturers with a marketing channel, you can retain a portion of the sales that the site generates; in the range of 10 to 15 percent would be fair. This type of cyberventure could really prove to be successful, as 'factory direct' pricing attracts consumers and securing manufactured goods to be featured on the site would be very easy.