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LETS GET DOWN TO BUSINESS.

Question :
Hi, I was about to launch a new online business selling computers and peripherals (specifically for gaming) before Covid but have since held off as I am no longer confident in the market. I’m trying to decide if now is still to early to launch or with enough capital, is now a perfect time? 

Question submitted 06/05/20 @ 07:43am
Industry: Start-ups
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  • Hi,

    The key thing here is going to be your confidence in your market validation (and this applies regardless of timing), why will customers either really need (or think that they really need) this? Then why do they have (almost) no alternative (competitors and also remember to include doing nothing).
    If you are confident of the above, then there isn’t a reason why you shouldn’t launch, however, as capital providers (including banks etc) are likely to be risk averse, the more you can finance this business with sales the better. It will reinforce your market validation and if you are correct then you can scale up later.

    W

    Never to early if you have customers lined up who want to buy your products – so before you launch, de-risk by engaging with your target market, understand them, how they buy now, and whether you can satisfy their demand. Engage, build up order demand and then you can be in a derisked situation. Good luck. A

    Hi Noah, your timing is great! Demand for PC components, notably high-end gaming ones, is booming. The leading gaming component e-tailer in the US, Newegg, is posting record revenues, led by folks around the world who are confined to home. It’s true in NZ we may be out sooner, but social distancing will remain around for a while.

    Key thing to address alongside the market validation the guys outline earlier, is that gamers purely buy on price, so I’d work on wether you can be competitive price-wise as well.

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