Start-ups short on capital but long on creativity may succeed online
A number of well-known big businesses were born during past economic downturns. And with a detailed business plan, some seed money and an online presence, small entrepreneurs can launch a business too.
According to CNN Money, businesses including General Motors, General Electric and Procter & Gamble all found their footing during a time of economic crisis.
FedEx, another example cited in the Money article, was developed by Frederick W. Smith to serve an unmet need - delivering important documents in less than two days.
Just like business mavericks before him, one Canadian entrepreneur left his job at Research In Motion to launch his own business aimed at delivering drugstore goods to an underserved market.
An article in the Globe and Mail reports on Ali Asaria's journey from software engineer to small business owner with just $10,000 in start-up capital.
In the Canadian health and beauty market the biggest players have websites but lack ecommerce capabilities, says the article. And with competition in the U.S. charging a premium to ship to Canada, Asaria found his niche.
Although Asaria initially financed his new business Well.ca on his own, additional investment came once his idea and reputation reached some deeper pockets.
Rob Koturbash, managing director of Toronto investment firm Maple Leaf Angels, was attracted to his unique angle.
"He identified an area in Canada that was being significantly underserved to the point of practical non-existence. We thought this was a good opportunity to take advantage of the opening," says Koturbash in the article.
Asaria decided to focus on customer service, the story says, and used free shipping and hand written notes within each package to build rapport with shoppers.
After implementing free shipping, Asaria saw immediate growth in sales and Well.ca is now considered to be the top health and beauty site in Canada, says the Globe and Mail.
Experts agree that added attention to customer care during a down economy is a key way to retain business. Business owners that engage with customers on Twitter, Facebook and other social networks are finding a growing, loyal client base.
These new media channels are cost effective ways to interact with customers, answer questions and give attention to service problems.
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