Simple Wholesale Business Model Example:
Retailer A purchases $1 Mio worth goods from Wholesaler B. Retailer A sells goods to customers and makes a profit. If retailer A was to purchase $10 Mio (10x) worth of goods, Wholesaler B would give 10% discount to Retailer A. So Retailer A conducts crowdfunding and raises $10 Mio from Investors and purchases inventory from Wholesaler B at 10% discount. Retailer A sells goods, receives higher profit margin and therefore is able to provide dividends to investors .
Question:
Is it ok to build a business model around wholesale discount price obtained through crowdfunding? ...or what do you think
Retailer A purchases $1 Mio worth goods from Wholesaler B. Retailer A sells goods to customers and makes a profit. If retailer A was to purchase $10 Mio (10x) worth of goods, Wholesaler B would give 10% discount to Retailer A. So Retailer A conducts crowdfunding and raises $10 Mio from Investors and purchases inventory from Wholesaler B at 10% discount. Retailer A sells goods, receives higher profit margin and therefore is able to provide dividends to investors .
Question:
Is it ok to build a business model around wholesale discount price obtained through crowdfunding? ...or what do you think
Since nothing is mentioned about coins or ICOs, I would assume that its not related to that. Crowdfunding if looked very well is something that have been with us for a while. Group of people coming together to buy goods at a discounted price that they would otherwise bought higher if they had done it individually, or investors coming together to finance a project then wait for dividend to be shared.
However, if you are going for the dividend part, its more difficult than it sounds depending on the amount involved, people involved, the business to venture into, other administrative cost, and the regulation of that jurisdiction all of the factors pit together affects businesses to the extent that in the first five years, it might not even turn out profit talkless of dividend. The summary of it is that, its a good business line but you need to consider all of the factors before asking for people to contribute for financing.
