The Bigger, the Better
If you need quick cash flow to stay in businessand who doesn't?skip the small retailers and go straight for companies that buy in bulk.
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Let's say you design a new clothing product. The
conventional approach taken by many underfinanced inventors is to
start by selling to small, local customers. The goal is to slowly
and steadily build a market for their products. Problem is, this
approach isn't likely to generate the kind of revenue your
business needs to survive. Here's a better approach: Go after the biggest customers you
can find. After all, it often requires the same amount of work to
land a small sale as it does a big one. And the benefit is, when
you do finally make a sale, it will generate revenue to grow your
business. This was the approach taken by 33-year-old Sharon
Thomas-Ray when she launched her Chicago business, Y-Tie
Neckwear. Slow Going Content Continues Below
Thomas-Ray's idea originated in 1995 when she took a
marketing class at National Lewis University in Chicago. One of the
assignments was to develop a product and create an introduction
plan. While working at a fashion show, she noticed how long it took
models to tie their ties to the right length. Thomas-Ray decided
that an adjustable tie with a zipper would solve the problem, as
well as make a good project for her class. Once the school
assignment was completed, she practically had her business in
place. "Lots of people told me they liked how easy it was to
adjust the Y-Tie, so I decided to try to introduce it," says
Thomas-Ray. In 1998, she got a patent on her invention and was
ready to go. Thomas-Ray's first efforts were spent targeting the local
Chicago retail market. She made some sales, but progress was slow.
Then she got her big break: Publicity in the Chicago Sun
Times and on the WGN Morning News led to an $8,000
purchase from The Salvation Army. Landing that deal gave Thomas-Ray
the idea that maybe she was wasting her time chasing after small
retail orders when she could be pursuing bigger ones. | | NEXT ASSIGNMENT | | | Sharon
Thomas-Ray's experience of developing a product as a school
project isn't new. It's part of a lot of colleges'
curriculums. But how does that help you? Well, many college students don't
have a product to promote. So if you don't have the time to
work on your invention yourself, you might find a college student
who will agree to use your product as a school project. Even
better: If you make the student a partner in the project, he or she
is eligible for prototype assistance and other resources, as well
as outright grants, from the National Collegiate Inventors and
Innovators Alliance (NCIIA). For more information on the program and
some of its past successes, go to www.nciia.org or
call (413) 587-2172. |
Originally published in the October 2002 issue of Entrepreneur Magazine
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