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  • Do I need a loan for a dropshipping business?

    updated 2 weeks, 4 days ago 0 Member · 1 Post
  • David

    Member
    October 26, 2019 at 8:02 am

    Ok so here is where we are at with our business. We sell clothing to a niche market and our research has proven our products to be viable. We use dropshipping suppliers, advertised twice to a limited market of friends and family on Facebook, and we have sold four items in two months. It was supposed to be a side hustle but the market potential is huge if we decided to market this seriously. We want to upgrade and get a website, as well as use Instagram and influencers. One of the admins is already an influencer and we are marketing to her audience. Her and one of our friends, another influencer, have a 60k follower audience together. We even have a whole business plan with two years of financial projections. So we thought why don’t we start with a bomb marketing campaign and apply for a small business loan. That way we (3 owners) can make a salary almost from the start and really go at this. Obviously this is going to be a high interest business loan for which all three of us are liable, since it is our first and we are pre official launch. Should we just take it slow? Yesterday, I was wondering if we REALLY need the financing? We need a few grand to get things going (website, incorporation, legal/accounting, etc…) And we will have to adjust our business model, but I know marketing is our forte, I know we have a good thing here and our initial cost are still relatively low (thank you dropshipping). Our projections are based on worst case scenarios and we still do pretty fine even our first year. What I’m saying is, money would make this start quicker and better but it MIGHT take off without extra help. A loan is a huge responsibility. I know you can’t really guess a market with accuracy on a new product, but if there is a market, we will find it, although money will help. If the business does take off strong, wouldn’t a loan help anyways? My question : since our product is viable, should we just launch already and see where it goes, postponing our salaries and doing this as a side hustle until it grows or is it better to get a business loan and start with a strong(er) marketing campaign anyways? Thank you for your insight. – by hq overview mandalee90 – –

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