The Blank State

Scenario

·         Have an idea: X

·         You or your partner possesses a unique skill set: X

·         Have relevant industry experience: X

·         Have relevant industry contacts: X

·         Have capital: X

Strategy

If you do not have anything, doing brokerage may be a good idea. Use your network to find a supplier of a product, and potential customers, take the product, one at a time, and sell it to a potential customer. If the supplier trusts you, you may get credit, if the customer trusts you, then you may get an advance payment. Focus on one customer at a time.

You can also bridge buyers, and sellers for a commission from both sides, many people sell cars likewise.

Gradually you can increase your customer base by generating positive word of mouth which is a result of happy customers talking positively on your back. Creating a positive word of mouth through satisfied customers is the most cost-effective, and effective way to increase sales. To create a satisfied customer base, their requirements must be understood from their perspective. Understand the problem they are seeking a solution to, not the product or service they seek. Try to solve the problem and the product or service you may provide could just be a part of the solution. Guide the customer toward the real solution to their problem even if it does not benefit you financially. That’s fundamental in gaining customer’s trust and establishing your credibility, which will eventually generate positive word of mouth.

Advantage: No prior investment required, and by connecting the buyers, and sellers you can learn about the behavior of all stakeholders, you can gain product knowledge, and discover your abilities to become self-employed. This can be the first step toward bringing all ingredients necessary to start a business in the future. Keep saving money to invest in your future business. Exposure to real market scenarios can also lead you to some viable business ideas to build a sustainable business, as ideas generated without exposure are good only in theory. Some other potential advantages of starting a brokerage business include:

• Flexibility: You can work from anywhere, at any time, as long as you have a phone and an internet connection. This can be especially beneficial if you have other obligations, such as caring for children or elderly relatives.
• Low overhead: Since you don't need to maintain an inventory or a physical storefront, your overhead costs can be quite low. This can help you keep your prices competitive and your profits high.
• No need for specialized knowledge: While it can be helpful to have some background knowledge in the industry you're working in, you don't necessarily need to be an expert to start a brokerage business. Your role is more focused on connecting buyers and sellers and facilitating transactions.

That being said, starting a brokerage business is not without its challenges. Here are a few potential drawbacks to consider:

• Dependence on others: Your success as a broker depends heavily on the reliability and trustworthiness of your suppliers and customers. If either of them lets you down, it can reflect poorly on your business.
• Limited control: As a broker, you don't have much control over the products you're selling or the terms of the transactions. This can make it difficult to differentiate yourself from competitors and build a strong brand.
• Potential for conflicts of interest: If you're earning commissions from both buyers and sellers, you need to be careful to avoid any conflicts of interest. You also need to be transparent about your fees and commissions so that both parties are fully informed.
• Overall, starting a brokerage business can be a great way to dip your toe into entrepreneurship without taking on too much risk. As you gain experience and build a reputation for yourself, you may find opportunities to expand your business or pivot to a different industry altogether. 

Requirements: Good interpersonal skills, strong empathy, good selling skills, patience, and cool temperament.

The following video below explains this section in Urdu