The stores, the television and even websites today are all talking about the electronic cigarette. You put your thinking hat on and a bright idea pops up; you think why not join the booming business. After some research, you find out that your heart and mind as well was in the right place.
Statistics show that the e-cig business has been doubling in market shares annually for the past three years and the demand amongst consumers is still high. Why should it not be you? Think what with the health benefits it has to offer compared to the traditional cigarette. It is environment friendly, as the product does not release harmful substances into the air. Furthermore, it comes in flavored brands and this is a good sales punch line. With such benefits and a guaranteed market share it seems nothing can go wrong.
You write down all the marketing punch lines you can think off like how to smoke in no smoking zone or smoke with no risk of lung cancer or quit smoking as you smoke. It is priceless and you beam at the idea. Well yes, they are healthier, cheaper, environmental friendly and business is good.
However, there are certain mistakes that business owners of such booming businesses make that drown them, never to recover. Learn what mistakes to avoid as you plunge into the booming e-cig retail and wholesale business.
When starting, do not:
• Expand with haste
Immediately you begin the business, you get high revenues and the demand is high. Everything shoots up so fast that suddenly the staff you have is not enough and you seem like opening another store is a bright idea. Although both are true and would enhance your business, stop in your tracks and think. The first step when met with such demands is to create a plan do not simply expand because the demand is there. Plan fast then expand so that you do not compromise on quality.
For instance, get all the necessary requirements for insurance and employee benefits in place before you go hiring more employees. Find out just how large your demand is before you open stores and invest greatly only for sales to reduce drastically. The best advice when faced with such demand in your e-cig business is to go piecemeal. If you move too fast, you might risk losing it all.
Many lose their business when they expand too fast and end up dissatisfying their consumers and lose touch with their distributors. Control the excitement and plan right.
• Ignore the small but important details
It comes with the territory of a booming business; suddenly the paperwork is too much and small details get ignored. Well it is such small book keeping details that you cannot afford to ignore. The small things will heap and suddenly it will be a big mountain in the way of your profits. The solution is simple; just outsource. Outsource the small administrative tasks such as paperwork and correspondence and focus on your core business.
When you focus on what is important to you, you get higher sales and better profits. The outsourcing company also focuses on what its core business is, which is dealing with your administrative tasks. At the end of the day, it is a win-win situation. Even when you continue enlarging and expanding you know you have an established framework for every little administrative detail. Expand and enlarge in piece by outsourcing.
• Ignore your established competitors
Maybe you are at par with them or you have surpassed their profits lately, this is no reason whatsoever to ignore more established persons in the field. There is much to learn from their business practices in both their successes and their failures. No matter how fast you are expanding or how good you are having it in your business, you should never ignore your competitors. It is vital knowing your market position at all times.
• Lose track of your market
Many businesses have boomed one year only to crash the next because of failing to keep up with market trends. Knowing how your market is constantly responding to your product is vital in keeping sales on a constant high.