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  1. #1
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    Cellular phone retailer

    What does it take to open a business like www.letstalk.com ?

  2. #2
    SitePoint Evangelist comfixit's Avatar
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    Thats a pretty hefty question. I am assuming when you say something like your just reffering to a website that cells cell phones and services.

    If thats the case I would suspect that you would want to contact the major wireless carriers in the target area you would like to server and find out what it takes to be an authorized reseller.

    Once you are an authorized reseller you can purchase the phones and offer the plans online. Probably at first you would take the information via the website and then proccess it manualy via Fax or the Internet with the carrier.

    When you sell a plan I think they wait till the second month has been paid for and you get a compensated from the carrier based on the cost of the plan.

    To me it would seem like it would take a fair amount of capital to start up a business like that but I could be wrong.

    Oh then there is the website portion of the business. You will probably want to take advantage of a web host that offers a shopping cart to make your life easier. OS Commerce is a pretty good open source solution and their are alot of hosts that offer commercial packages ot their customers such as Miva etc...

    Once you have chosen a host you will need a web developer to impliment your site for you unless you have the programming skills already.

    when your up you will likely need a merchant account to proccess credit cards. Most major banks can help you out with these.

    Then of course you have legal considerations. You will need to apply for local licenses to operate your business.

    Lastly I would suspect you will need to produce stationary for use with your ordering as well as packaging supplies when you ship the products. Perhaps an account with a carrier like UPS and FedEx would be in order.

    I am sure there is alot of things that I have left out. But hopefully this gives you a partial idea of the scope of what you endevour to do.

  3. #3
    SitePoint Zealot oalhajjar's Avatar
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    Lots of money, time, and effort. And some more of those three factors.

  4. #4
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    what would be an estimate cost to get this business running, minus all internet fees like a host, merchant accounts etc?

  5. #5
    SitePoint Zealot oalhajjar's Avatar
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    Newb you would have to create a spreadsheet to calculate the fees. No one can give you a reasonable estimate without spending some time estimating and calculating fees. That is why people can't jump in and start a business like that.

    This the reason why business plans exist. To put every number on paper and see if it can work.

    If you are serious at starting a business like that I would open up Excel and start putting in some line items. How much would hosting cost? Domain you want? Support? Inventory? Taxes? Office Supplies? Advertising? Hiring anyone? Variable Costs? Fixed Costs? Oppurtunity Costs? Financing Costs? Initial Cash Outlay? Returns? Web Designer? Script? And the list goes on. And these aren't even half of the considerations you will need.

    Can you find a supplier? Estimated Profit Margins? ROI? Cash flow? Etc, Etc, Etc...

    But maybe you know all this so I don't mean to sound omniscent here. But simply just saying 'an estimated cost' is an unanswerable question. You've got to spend a little time and effort and figure it out. That's why its business and has potential for profits. If we all knew how much it would cost and how much we could potentially make then there would be no profits at the end of the day since people who see an opportunity will jump at it.

  6. #6
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    "How much would hosting cost? Domain you want? Support? Inventory? Taxes? Office Supplies? Advertising? Hiring anyone? Variable Costs? Fixed Costs? Oppurtunity Costs? Financing Costs? Initial Cash Outlay? Returns? Web Designer? Script?"

    ^Yes, I understand all of these variables, and have a good idea what type of money I would need for that, I have all of these resources.


    "Can you find a supplier?"

    ^This would be the part that I'm stumped on.

    thanks

  7. #7
    SitePoint Evangelist comfixit's Avatar
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    Newb101 Why not consider looking at retail Franchises that sell cell phones. By researching those opportunities specificaly you can gather alot of information that will be usefull to you even if you decide to go at it from scratch.

    And you know having a franchise is nice in that they succeed more often then people who venture out on their own and you will have most of the logistics handled...... They will even train you.

    I did a quick google and came up with this page which I think is businesses for sale. They have one similar to what you want for 45K.

    http://www.franchiseadvantage.com/fr...ranchise.ihtml

    If you buy their business you can immediately reap the benefit of the existing business and expand to the web to make it even more lucrative.

  8. #8
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    ah thank you for the help, I was actually hoping things to be in the 20k range though, I'll do some more research though.


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