Extending credit on line

[Nani]

Hi!
Thanks for the wealth of information in this website!

I have been doing business with local customers and have just launched a website to broaden my market. Until now, my customers are local schools and non-profits, and I could deliver the product to them and let them sell it in their fundraisers before they had to make payment. (Many of them do not have a fundraising budget or credit cards.) To sell nation wide to the same type of customers, I would love to extend the same kind of payment plan. Is there any way to do this where I won't totally lose my shirt?

Nani

[Lori]

Hi Nani :)

I love your business idea! How terrific that it's working out so well for you and that you are able to employ other Mothers. I think I read that in another thread right? That you let them bring their children and you take turns with the childcare? That is fantastic!

I really don't have a good answer for your question. Someone else here might I hope. If I were you I would definitely request some type of down payment at least to customers that you have never met before.

Maybe you could establish a system with them so that after you have done business together successfully one time you would be willing to front the product for the next fundraiser?

Let me know what you come up with. I'm really curious. If I ever get to the tea time (http://www.freelancemom.com/teatime.htm) page I would love to feature your business :)

Warm Wishes!

Lori

[Nani]

Thanks for your thoughts, Lori. Your idea about starting with a down payment might work.

I'm all for sharing ideas. Our basic business plan would work for a lot of different products. It can be started with very little money and gradually build. It's probably not the answer to everybody's problems, but maybe a possibility. I see this business as a work in progress and I'm learning lots and growing inch by inch.

For those who do not want the manufacturing side of a business but would rather sell the product, they also could start small and grow. (Our biggest customers are other moms--so anybody with kids is already rubbing shoulders with customers.) Start with one box, sell it before they make payment, and grow as they build a customer base. This not only works for our product, but for other ideas people have too. What do you think, Lori--or anybody else?

Now that I think about it, maybe another answer to our extending credit online problem is to just start with one box. It's still a risk for us, but it gives a chance for somebody to get started. Then again--maybe I'm in the lollipop business because I'm nothing but a sucker! :p

Nani