Posts Tagged ‘new business ideas’
Company: Corkage
Website: www.corkage.ie
Founders: Stephen Dillon
Age: 33
Based: Dublin
Staff Numbers: 4
Date started: June 2009
Tell us what your business does?
www.corkage.ie is a supplier of wines for weddings primarily but also for any special occasion or function. We also provide information about the whole topic of corkage, food and wine matching etc.
Where did the idea for your business come from?
The idea came about after several requests from friends and family for advice on wedding wine. I have been interested and involved in the wine industry for years. Many of the people who conatcted me were not happy with the price and quality of wines being offered to them by hotels, venues etc. They were looking for better quality and more choice and were smart enough to realise that by organising your own wine you can save a small fortune and give your guests better wine.
Have you always wanted to run your own business?
Yes. In addition to corkage I also own an off licence and previously an internet cafe.
What planning did you do before you started up?
I did a lot of research on what hotels were charging for corkage and requested copies of wine lists. As I am already in the trade I had a good idea of what they were paying for the wines on the list. The difference convinced me that there was an opportunity to give people an alternative choice.
How did you raise the money?
Luckily the website did not require much investment. I found a great web developper who got the site up and running very quickly (www.complex.ie). Much of the required infrastructure for the business was already in place from the off licence. Raising money for the off licence is another story!
What challenges have you faced how have you overcome them?
The economic downturn was obviously a major challenge. The whole wine industry in Ireland is under massive pressure at the moment. The government raising VAT last year just as the UK government dropped their rate sent lots of people shopping up north particularily for big purchases like 200 bottles of wine!. This also created an oppoprtunity as we were able to buy lots of liquidated and bin end stock from hard pressed suppliers in the south. This meant we could find great ‘clearence’ lots for our customers. On one occasion we sourced a wine that normally sold for €20 per bottle for well under €10.,
How have you promoted your business?
Most promotion has been done through google adwords, although this can be expensive you do get pretty instant results once you use the right keywords. I have also linked up with a number of wedding websites again this reaches the target market.
What has your growth been like?
Growth has been steady, we started by supplying wine to people we knew, slowly word started spreading and enquiries and visits to the site are growing every week. We also offer free delivery and a sale or return service this has definately helped sales.
What’s the impact on your home life been like?
There has been no major impact on home life as I have been doing long hours in the off licence already. I have enjoyed updating the blog and checking the number of hits on the site. Compared to retail web based business is a dream!
The term ‘franchising’ has been used to describe many different forms of business relationships, including licensing, distributor and agency arrangements. The more popular use of the term has arisen from the development of what is called ‘business format franchising.’
Business format franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name of the franchisor and to make use of an entire package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis.
The principle is simple – some companies choose to grow, not by developing in the conventional way, but by granting a license to others to sell their product or service. There are clear advantages to this:
•You don’t have to come up with a new idea – someone else has had it and tested it, too!
•Larger, well-established franchise operations will often have national advertising campaigns and a solid trading name
•Good franchisors will offer comprehensive training programmes in sales and indeed all business skills.
•Good franchisors can also help secure funding for your investment as well as e.g. discounted bulk-buy supplies for outlets when you are in operation
•If aware that you are running a franchise, customers will also understand that you will be offering the best possible value for money and service – although you run your ‘own show’, you are part of a much larger organisation.
Who is in Control?
Each business outlet is owned and operated by the franchisee. However, the franchisor retains control over the way in which products and services are marketed and sold, and controls the quality and standards of the business.
What are the Cost Implications?
The franchisor will receive an initial fee from the franchisee, payable at the outset, together with on-going management service fees – usually based on a percentage of annual turnover or mark-ups on supplies. In return, the franchisor has an obligation to support the franchise network, notably with training, product development, advertising, promotional activities and with a specialist range of management services.
