Progress into my very first start-up
I've been lurking the forum for a (long) while, but have put off posting, until now.
A short introduction as to who I am:
I'm 29, Belgian and a massive nerd. I say this with pride, but no zits, with contact lenses and the ability to score a hot girlfriend. You get my point I'm an IT consultant by day and plan to be an entrepreneur by night. The reason I bring up the nerd part, is because a good 20 years ago, I was gifted a Nintendo Gameboy. You know, those big, grey brick-like hand-held gaming devices. I bring up the girlfriend, because when we moved in together, more than a year ago, I came across my old unit, in my parents attic. I was overwhelmed with nostalgia, I had presumed my own Gameboy long lost in a yard-sale or something.
I dusted it off, cleaned it from the outside and then came to the conclusion I needed a special screwdriver to open up the unit. I'm curious like that. The device still worked, but there was something amiss with the display. After some research, I found the special screwdriver online and... well, long story short: more than a year later, today, I've repaired, cleaned, restored, fixed, modified, spray-painted and upgraded a few dozen Gameboys.
This started snowballing, into the idea, which brings me to you guys.
Short term goal:
Sell refurbished Gameboys. I currently know all the common defects of a Gameboy and how to fix them. I have a fair amount of original and aftermarket spare-parts. I have ordered from, communicated with and tested several vendors from across the globe, for spare-parts or components to upgrade a standard Gameboy with several items.
There's already a few players in this field, but they either target a special niche (music crowd, people hook up old electronics to turntables, to make music from it, aka chiptunes or 8bit music), or they just sell components.
My perspective, on a short term, is to hit that nostalgia string: offer a fully tested, functional, clean and perhaps upgraded Gameboy, along with a few classic games (Tetris, Super Mario Land, etc.). I want my customers to receive their package, unwrap their Gameboy, pop in the batteries and get transported back to the nineties with a wall-to-wall grin on their face.
Long-term goal:
Sell not only refurbished Gameboys, but also upgraded Gameboys. Upgraded means a backlit screen, recheargeable li-on battery with USB connector, better sound. Same approach as above: Offer the unit battle-ready.
Long term dream:
Get a 3d printer, print my own components. Offer 3d print services to everyone. Create a creative lab where people can refurbish or upgrade the items through tools and services offered by me. Pardon the short the description, I feel this digresses from my post but I'd be happy to elaborate if anyone would like me to.
My audience/niche:
This is still a bit of a struggle. I've recognized two audiences so far:
- The not-so-nerdy-people, aka, the "Nostalgia Crowd":
they're in it for a cheap, but near-mint Gameboy and the desire to beat that one boss in Super Mario Land 2: The 6 golden Coins.
- The nerdy, "ooh-shiny buttons!" people: aka, the "Nerd crowd":
They're in it for the complete experience. They probably own at least one retro gaming console and want something more. The backlight screen, the recheargeable battery, the emulator, to play more than just Gameboy games, etc.
You'd think this is a male-dominated crowd, but I've had the most enthusiastic responses from women. These people are in their twenties, early thirties. Same age as me and probably grew up with Gameboys... but are now provided with capital. Still, I realize, it's not a mainstream crowd, however, there's a strong Belgian/Dutch retro gaming community with conventions, facebook groups, online communities, etc.
My competitors:
Globally: there's a few, but none offer the full experience, by adding a game cartridge along with the sale. What's the point of buying a Gameboy for nostalgia's sake, if you have to go through the bother of finding games for it, afterwards?
Locally: virtually none. Locally is more important, I feel, due to shipping costs and time.
Risks:
Somewhat low.
Costs: Most costs go into buying aftermarket components, which cost between € 0,40 to € 12.
Inventory: Keeping up with inventory is another thing: I'm entirely dependent on buying second-hand Gameboys. I specifically hunt for lots or broken devices, since most fixes are very easy, if you do the research and have the necessary tools.
Buyers: Don't have enough data or experience for any foresight on this
Turnover vs. profits:
For JUST a refurbished unit:
Out of all units I've bought, I pay max. € 10 per unit.
The very few local sellers I found, sell Gameboys, non-refurbished, without a game for € 25 to € 35. Keep in mind that these have scratched screens, missing port covers, leaked battery acid and are not tested for common defects.
Components, on average, cost me about € 7 per unit. (new scratch-free screen, buttons, battery contacts, etc.)
Washing (detergent, vinegar, rubbing alcohol, glue remover, hydrogen peroxide and other chemicals to restore their color): € 3 per unit.
Repairing: Varies way too much per unit to tell. Worst case scenario: € 10 for an entire circuit board.
I'm not counting work hours, as I just do this for fun. I get a kick out of washing and scrubbing a derelict unit and getting it fully functional again.
This brings me to 10 + 7 + 3 + 10 = € 30.
Add in a classic game, not a worthless game = € 7
To overdeliver, I usually surprise buyers by adding a second game, usually one of several double games I have = € 3
Shipping + packaging = € 6
This brings me to grand total of € 30 for the unit, € 10 for the games and € 6 for shipping and packaging = € 46.
In order to evolve and get some profit, I'm setting my sales price to € 60, including shipping.
How far I've gotten:
I've set up my own website, designed my own logo's, banners and set up my own facebook page. These were launched the 27th of March, 2015. Not too long ago. Because I don't have the funds to go legitimate on Belgian company terms, I've sold 6 units through second hand facebook groups. Naturally, I have every intention on getting a registered company. I have my day-job, that I love and currently do not have reason to quit.
My website currently does not have a webshop, for legal reasons, I'd need a registered company first. That's why I'm using second-hand channels, which is perfectly fine, but cumbersome. Woo-commerce is installed and ready to go. I just need to add the buttons to my menu.
I don't want to keep my knowledge to myself, so I share refurbishment guides on my website.
What I want, of course, is to grab an opportunity if it presents itself. A year ago, I'd be ashamed to admit this, but now I realize I have no reason to: I want to monetize this. This is a passion, I've done my homework and I'm learning every day, but I'm still new to making a business out of this.
Why am I posting this?
General advice, please! Pretty please. Very pretty please. I'm too young and inexperienced and currently feel like I'm on a crossroads, can't lose too much time, but have to decide on how to go forward. I believe that in order to equip myself best for this, is to ask people that have gone down the road I'm thinking of travelling.
OR, if you feel like this venture is a dead-end, please tell me and tell me why. My girlfriend and I are making ends meet, but we wouldn't say no to a slightly more comfortable financial situation while doing something I love.
I don't want to blatantly self-promote, but my website and facebook can be found through my signature. Sorry if this breaks any rules, but I've seen people post this before. Please notify me if I'm doing anything wrong.
Also, apologies for any errors, English isn't my native language, although I adore English. Feel free to correct me if need be.
Thanks for working through this lengthy post and please know that I really, REALLY appreciate any and all feedback!
Dental Floss Tycoon
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