Question Regarding Starting a New Business

[ARCHIVED THREAD] - Question Regarding Starting a New Business

Posted: 1/2/2007 7:21:31 AM EDT

I'm going through the motions about starting a new retail business. I'm investigating my costs to determine if I can offer the products at a competitive price while still making a profit.

My question...
How do I found out the product wholesale/dealer cost from the manufacturer?

My difficulty in answering this question has to do with the fact that I haven't established the business yet.

Another question...
I'm currently a sole proprietor. I have an EIN and my DBA is my real name.
If I establish a new DBA, can I use my existing EIN for federal reporting and state sales tax purposes?

Posted: 1/2/2007 2:21:23 PM EDT

[#1]

Jeebers! Bumped to oblivion.

Any advice?

Posted: 1/2/2007 2:38:40 PM EDT

[#2]

I know when I looked at starting a motorcycle business back in the day, they wanted to see a store front, showroom, signage, etc before I could establish an account and subsequently recieve wholesale pricing lists.

Posted: 1/2/2007 2:42:10 PM EDT

[#3]

Quoted:
I know when I looked at starting a motorcycle business back in the day, they wanted to see a store front, showroom, signage, etc before I could establish an account and subsequently recieve wholesale pricing lists.

That's a huge part of the problem I'm running into, although some don't insist on a store front.

Makes is damn difficult to put a busines model together that ensures profitability.

Posted: 1/2/2007 4:49:57 PM EDT

[#4]

Quoted:

Quoted:
I know when I looked at starting a motorcycle business back in the day, they wanted to see a store front, showroom, signage, etc before I could establish an account and subsequently recieve wholesale pricing lists.

That's a huge part of the problem I'm running into, although some don't insist on a store front.

Makes is damn difficult to put a busines model together that ensures profitability.

What I would do is find out from other people within the business you want to start what the average profit margin is. That will atleast give you a general idea of what kind of profits to expect from a given sales volume.

Posted: 1/2/2007 5:00:16 PM EDT

[#5]

Quoted:

Quoted:
I know when I looked at starting a motorcycle business back in the day, they wanted to see a store front, showroom, signage, etc before I could establish an account and subsequently recieve wholesale pricing lists.

That's a huge part of the problem I'm running into, although some don't insist on a store front.

Makes is damn difficult to put a busines model together that ensures profitability.

What I would do is find out from other people within the business you want to start what the average profit margin is. That will atleast give you a general idea of what kind of profits to expect from a given sales volume.

Ah. Ask my potential competitors how to run my business better than they run theirs.

Posted: 1/2/2007 5:08:05 PM EDT

[#6]

Quoted:

Quoted:
I know when I looked at starting a motorcycle business back in the day, they wanted to see a store front, showroom, signage, etc before I could establish an account and subsequently recieve wholesale pricing lists.

That's a huge part of the problem I'm running into, although some don't insist on a store front.

Makes is damn difficult to put a busines model together that ensures profitability.

What I would do is find out from other people within the business you want to start what the average profit margin is. That will atleast give you a general idea of what kind of profits to expect from a given sales volume.

Ah. Ask my potential competitors how to run my business better than they run theirs.

I mean eitehr ask people on this board, or ask employees of similar businesses.

Posted: 1/2/2007 8:51:18 PM EDT

[#7]

yeah, do some more homework to project your margins, use RMA Annual Statement Studies to find industry averages. This is public information.

Depending on your state, LLC usually provides all the advantages of an S-Corp plus more.
Again, do more homework.

Posted: 1/3/2007 4:36:47 AM EDT

[#8]

Quoted:
yeah, do some more homework to project your margins, use RMA Annual Statement Studies to find industry averages. This is public information.

Thanks. I think I found what I'm looking for.

Posted: 1/3/2007 4:06:36 PM EDT

[#9]

Quoted:

I'm currently a sole proprietor. I have an EIN and my DBA is my real name.
If I establish a new DBA, can I use my existing EIN for federal reporting and state sales tax purposes?

Yes. You should, however, consider forming a separate entity such as an LLC, S-Corporation, or C-Corporation. There are many factors which determine which is best for you - see an attorney.

Posted: 1/3/2007 4:51:44 PM EDT

[#10]

The US Government "Small Business Administration" is a good place to start for free information. One must realize that the SBA experts are all private company wash outs but they do have lots of statistics in planning a new business.

[ARCHIVED THREAD] - Question Regarding Starting a New Business

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