✓ Accepted Answer
Dropshipping works by selling products online without holding any inventory. When a customer orders from your store, you purchase the item from a supplier who ships it directly to the customer. You keep the margin between what the customer paid and what the supplier charged.
The appeal: no upfront inventory investment, no storage space, can be started with minimal capital. The reality: margins are thin (often 15-30%), customer service is difficult when the supplier ships late or sends wrong items, and competition is fierce on popular products.
For it to work today, you need either unique product sourcing (working directly with manufacturers rather than generic AliExpress suppliers), or strong branding and marketing that creates a reason to buy from you over competitors. Generic stores selling the same products as everyone else rarely succeed.
Shopify is the most common platform. Start by choosing a niche narrow enough to build expertise in but large enough to have customers. Validate demand with a small advertising spend before investing heavily in building the store.
by hanafarouk2516
· 51 upvotes
An exit strategy is a plan for eventually leaving your business, either by selling it, passing it to family members, merging with another company, or in a worst case, closing it responsibly.
Having an exit strategy from the start shapes how you build the business. If your goal is to sell, you need to build systems and processes that don't depend entirely on you personally — a business where you're the key man is harder to sell. Buyers want documented processes, recurring revenue, and a business that can run without the founder.
Most small businesses are valued at 2-4x EBITDA (earnings before interest, taxes, depreciation, and amortisation). SaaS and recurring revenue businesses often command higher multiples. Growth trajectory, customer concentration risk, and quality of earnings all affect valuation.
If you're not planning to sell, think about what happens if you become unable to work. Life insurance and key man insurance protect your family and business partners. A documented operations manual ensures the business can continue.
by makenacheruiyot1122