Can you still make money from ebay?

Still seen as an auction site for second hand goods, sales on ebay continue to grow. Internet sales as a whole contribute more than 14% of all UK retail and this is predicted to grow to 26% in 2016. The UK is already the most internet-based country in the world, according to a report by the Boston Consulting Group.

Many of us do use ebay to sell on unwanted goods, or to shop for a bargain. But, many businesses exist either entirely by selling on ebay, or by mixing their ebay sales with other online platforms or a physical shop. Is there still money to be made?

If you have a business idea you need to look at the sector and see if there is a space for you in the marketplace. If you have come up with a fantastic new invention then you may create your own space in the market by fulfilling a need, but many businesses are selling something that others are selling. If you are setting up a bakery you would want to do so in an area with a high footfall of people but without an existing bakery. If you are choosing to sell online then you would be competing with other online retailers. You would want to stand out by offering good value for money and excellent customer service. 

But, remember that online sales are growing overall, which means that there may be extra room in the marketplace for more sellers. Of course it is not as simple as that, and you need to ensure that you choose a sector which is growing rather than shrinking in the economic downturn. A quick spot of googling should answer that question for you. Remember that people are hunting for a bargain in the economic downturn so if you can sell essential goods at bargain prices you could be on to a good thing.

For an article on the fastest growing sectors in 2013 check out this article from 'startups': http://startups.co.uk/what-business-should-you-start-12-fast-growing-sectors-in-2013/

Why ebay though? I frequently get asked why I sell on ebay and Amazon rather than my own site. The simple answer is that these two internet giants drive a huge number of customers to my products. I do have my own site and I periodically spend time trying to improve the site and money trying to attract customers but to little avail. Ebay takes around 10% of everything that I sell, but for that it provides most of my marketing, customer footfall and technological support. I reckon that's a good deal. Amazon charges higher fees but seems to attract more customers (at least to my products) and those customers are prepared to pay for good quality items.

So in summary, research your sector, check out your competitors, and give it a try. Think about who your customers are. My main business is maternity clothes and babywear. My customers are often pregnant women who want the convenience and choice of shopping online rather than trawling the high street which only has a small quantity of maternity clothes. I believe that for the right business in the right sector there is still money to be made from ebay. Go forth and prove me right!

What does it take to be an entrepreneur?

We are used to the idea of Dragon's Den, but not every business needs to be a completely new invention. Many people make a decent living with routine businesses that are similar to their competitors. If you are planning to do something which others are already doing, then think about how you will create space for your products in the market. One way is to invest in an industry which is growing. Certain industries are shrinking during the economic downturn, so do your research and see whether your sector is still growing. Or, can you offer a local business which isn't already in your area?

It can take guts to be an entrepreneur. You may be a naturally optimistic person, but some caution will help you along the way. My number 1 piece of advice is to invest as little money as possible at the beginning. Invest your TIME and see how the business progresses before making a financial commitment. Of course in some sectors that just isn't possible, so if that is the case then don't skimp on your research. I have lost significant money by just believing that I have the power to make something work when it really couldn't. Keep your optimism and confidence, but back it up with research, figures and a sound strategy.

There are many obvious benefits to starting your own business, but you have to remember the down sides as well. You will always be the last to get paid. Money has to be allocated to paying the bills of the business, investing in stock etc, paying back loans before you can get a look in. If your business is successful you'll want to use any cash to make it grow bigger rather than taking money out to pay yourself. So, if it is a steady income you want then employment definitely has its upside!

But, if you can manage the risk then there could be great rewards as well. Working for yourself can provide a great sense of pride and achievement as well as the major reward of being there for your children.

For more advice and inspiration there are a few 'mumpreneur' sites out there which can give you guidance.

My children sitting on a box of stock!

What is a mumpreneur? Check out some of the links below:

http://www.mumpreneuruk.com/
http://www.mumpreneursnetworkingclub.co.uk/
http://www.netmums.com/back-to-work/working-for-yourself/useful-resources-for-mumpreneurs
http://www.mumsbusinessclub.com/
http://startups.co.uk/

The Idea

If you can bag a job which will let you work from home then all power to you. Some desk-based jobs can be negotiated so that one or more days of work a week are done from home, and some small businesses would like an employee who can work remotely. If you are work as a contractor, ie you do work for someone but you are not their employee, then you will need to register with HMRC. Check out our 'details' page to find the tax perks you are entitled to and the red tape you need to adhere to. You may be able to set yourself up as a contractor in the kind of job you had before having children and take on as much or as little work as you can manage. Have a think about whether the profession you were in would lend itself to working from home. Many Mums and increasingly Dads are finding that starting their own business is the best way to get set up with home-working. The advantages are numerous, but primarily the reason we do this is to supplement the family income with something that fits around the needs of our children. It all starts with an idea... You may already have an idea of what you would like to do for your business, in which case take a look at the 'Practical Details' and 'Tax & Compliance' in order to figure out how to go from the idea stage to the action stage. Or if you need inspiration then read on! Have a read through our 'Case Studies' to see what other people have done. Think of something you are interested in or passionate about. Do you make crafts which could be sold? Could you buy and sell goods online? Is there a service you can offer to the public, eg graphic design, marketing? Do you adore animals? Babies? Languages? Travel? Sit down with a friend over a large cup of coffee and have a brainstorm. Don't worry initially about having the full idea, just jot down all the different thoughts you have. Ask each other the following questions: what skills do we have? What assets do with have? Do we have any land available for use? (eg do you have a barn in your garden which could become a holiday let?) Is there are a gap in the market for a particular website? Can you do something which is already being done, but do it locally in your area or do it better than others? Once you have the beginnings of an idea then research your market. Google the themes you have come up with and see what is already out there. If others are doing something similar then that probably means it is a good idea! Find out if your sector is growing or shrinking. Our sector (maternity and baby clothes) is currently a growing market as we are in a baby boom. Renting houses is another sector with very high demand. If you do have obvious competitors then have a think about what you could do differently that would make your idea a success. Find out ways in which you can monetise your idea. Some are obvious: if you are planning to do dog-walking then you will charge your customers a set fee. But if you are planning to launch a new website then it is worth learning about the ways to earn revenue from that. Think about your start-up costs. It is VERY easy to find ways to spend money! Many people invest loads in getting a fancy website or getting a graphic designer to do a logo. Spend as close to £0 as you possibly can in the initial stages. It is extremely likely that your business will evolve and change once you get started so be as nimble and flexible as you possibly can be and don't spend any money!! This one is really hard, but you should try and be flexible with your idea. Often we think our idea is fab and we are going to push ahead with it no matter what. I have experienced that one and lost tens of thousands of pounds by taking out a loan and investing in a business which just wasn't the right thing. If anyone tried to caution me I just took it as an incentive to prove them wrong. If you can start small then you are able to make changes as you go along. Be brave! Entrepreneurs have always been noted for a positive can-do attitude and plenty of perseverance.

The Vision

Many people would love to be able to work for themselves or work from home. The idea of having flexible working, being around for the children and being your own boss is very attractive. But can this dream become a reality? In this blog we are offering ideas, examples, inspiration and guidance on setting up your own business and being self-employed.

Five years ago my husband and I took the decision to change our lives and work for ourselves. This was prompted by the arrival of our first child, and now with 3 little ones at home we are glad we made that decision. There have been highs and lows, successes and failures and you can read about our story and others in the 'Case Studies' section.

This blog is divided into different sections with a place for 'Ideas and Inspiration', real-life 'Case Studies', the all-important 'Practical Details' and also 'Tax & Compliance'.

Welcome

This blog is designed to give you ideas and inspiration about starting your own business and working from home.

As well as regular content and feature articles, this blog will keep you up to date with the latest news, ideas and information you need to know.

Self-employed parents is a one-stop shop for all things related to running your own business from how you get started to registering with HMRC and ensuring tax compliance.

We'd love to hear your comments and experiences and would like to feature as many case studies as possible so please do get in touch via the comments section.