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Starting a new business
TestYourMarket improves your chances of success
Businesses can be categorised by customer type: Business to Consumer (B2C) and Business to Business (B2B). Almost all businesses can now benefit from an effective website. These websites can then be categorised as either e-Commerce (meaning the sale is completed and paid online) or standard (meaning the website generates enquiries that are followed up offline).
Your best chance of immediate profit is where the net contribution per sale (sales value - all direct costs) is highest . Because it can then support a relatively high cost per sale. Since the average sale value in the B2C e-commerce group is likely to be lowest, that is where the entrepreneur is at greatest risk. TestYourMarket does not recommend this service to those who expect a net profit per sale lower than £20. Of course, one of the biggest successes of the internet has been Amazon.com whose contribution per sale is probably less than £20. But this case actually proves the point – Amazon had to invest multi-millions before achieving profitability. TestYourMarket is for new businesses for whom £1M is already more than they can contemplate. With us you should know the major issues well before you spend more than £4000. If you are committed to a relatively low value market, see our specific recommendations for e-Commerce sales.
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