Beginning a Penny Auction Business

[1100am]

Hello all!

I'm new here, but have been lurking around for quite a bit now. You guys seem to really know what you're talking about and I've found loads of useful information on this site, so I decided I'd join and hopefully learn more

Some background info.. I stumbled upon the concept of penny auctions a while back and the idea instantly piqued my interest. It seems like such an ingenious business opportunity, and it's an idea I'd really like to delve into. You see, I live in a country in Asia where penny auctions are pretty much non-existent, so competition shouldn't be much of a problem at all. My father is quite successful in his field of business, and said he could possibly introduce me to some people who have started their own internet businesses, who could help with marketing ideas, etc. My uncle also owns a courier business which would be extremely helpful with delivery.

Yet while I may have these few advantages on my side, I have a lot going against me as well. First of all, I'm 18 and if this were to push through it would be my first ever business endeavor. I know that sounds SOO unqualified (because it is..) but I am really willing to put the time, money, and effort into making this work. Business has been something I have been passionate about since I was a wee little girl, and this idea seems too good to pass up on. Also, I have limited knowledge when it comes to internet programming, writing scripts, etc. I'm basically at a huge disadvantage when it comes to experience.

So yeah, that's my main dilemma. For all you experienced penny auctioneers out there, advice would be greatly appreciated. Would a penny auction be a good choice as my first business endeavor? I would love to hear about you guys' own stories about what it took to set up your own penny auction. How long did it take to start gaining members? To break even?

I was wondering how much time you guys personally spend on the website (once it's already up and running), since I'm still in school. Would being away 7 hours a day (7am-2pm) hinder the business, or is the site something that is more self monitoring? Also looking around, I noticed how people were having the most problem finding a proper script to run their site. What's the best route to take with regards to finding a script?

I'm sorry if any of my questions sounded stupid, as I said I'm quite new to everything and I'm here to learn! I apologize too for the length of this post, and thank anyone who managed to read through it all!

[redcar]

Here are some of the obstacles you will face:

1) Cash flow to purchase inventory for auctions.
2) Credit history to get approved by merchant processing firm. They want to make sure they have a way to get their money back if there are a bunch of chargebacks after you go out of business.
3) Cash flow to pay for advertising and promotion.

[jameschanlee]

Hello. I apologize for the bad etiquette of posting in another person's topic, but as private messaging is disabled, this seems to be the only way to message the original poster directly.

To 1100am:
I've been lurking in this site for about a day now and one part of your post caught my eye:

I live in a country in Asia where penny auctions are pretty much non-existent, so competition shouldn't be much of a problem at all..

My condition is almost exactly the same as yours. I've been analyzing the business model of penny auction sites, and think that a site like this (albeit on a smaller scale) can be introduced to the Philippines. If I may ask, where are you based?

[gront]

might wanna check out these threads:

http://www.pennyauctionwatch.com/for...ead.php?t=1503
http://www.pennyauctionwatch.com/for...ead.php?t=1554
http://www.pennyauctionwatch.com/for...ead.php?t=1441

[cometobid]

Hi, I'm based in Taiwan and runs the PAW now. The cash flow is the biggest problem. You might need at least 400 thousands US dollars at beginning. The loan is impossible, or you can ask the investment in your country, or private business angel to invest.

[paolomedina]

Hello 11am, I would like to PM you but unfortunately it is disabled here in PAW. Anyway, I am your kababayan and I am also starting a Penny Auction site here in the Philippines (just launched January 1, 2012). I am the only sole owner of the site, I was the one who built the site including all the technical side. I am currently looking for a partner (co-owner) for the site since it was very very hard to start and market it in our country. This business has very big potential in our country since there are very few who offers it. In your case, I would like to talk with you if you're interested starting this business. In technical side, you don't have to worry about it but I think you could help on the marketing side and other stuffs. If you're interested and want to talk about my offer, please contact me at PinoyBidShot.com - Big Shot Ka Dito! through the contact page and will discuss the details and we could have an in-person meeting. Please, once you read this, contact me immediately as I have no way of contacting you and give you my offers. Thank you and I am hoping you will be able to read this reply.

Hello all!

I'm new here, but have been lurking around for quite a bit now. You guys seem to really know what you're talking about and I've found loads of useful information on this site, so I decided I'd join and hopefully learn more

Some background info.. I stumbled upon the concept of penny auctions a while back and the idea instantly piqued my interest. It seems like such an ingenious business opportunity, and it's an idea I'd really like to delve into. You see, I live in a country in Asia where penny auctions are pretty much non-existent, so competition shouldn't be much of a problem at all. My father is quite successful in his field of business, and said he could possibly introduce me to some people who have started their own internet businesses, who could help with marketing ideas, etc. My uncle also owns a courier business which would be extremely helpful with delivery.

Yet while I may have these few advantages on my side, I have a lot going against me as well. First of all, I'm 18 and if this were to push through it would be my first ever business endeavor. I know that sounds SOO unqualified (because it is..) but I am really willing to put the time, money, and effort into making this work. Business has been something I have been passionate about since I was a wee little girl, and this idea seems too good to pass up on. Also, I have limited knowledge when it comes to internet programming, writing scripts, etc. I'm basically at a huge disadvantage when it comes to experience.

So yeah, that's my main dilemma. For all you experienced penny auctioneers out there, advice would be greatly appreciated. Would a penny auction be a good choice as my first business endeavor? I would love to hear about you guys' own stories about what it took to set up your own penny auction. How long did it take to start gaining members? To break even?

I was wondering how much time you guys personally spend on the website (once it's already up and running), since I'm still in school. Would being away 7 hours a day (7am-2pm) hinder the business, or is the site something that is more self monitoring? Also looking around, I noticed how people were having the most problem finding a proper script to run their site. What's the best route to take with regards to finding a script?

I'm sorry if any of my questions sounded stupid, as I said I'm quite new to everything and I'm here to learn! I apologize too for the length of this post, and thank anyone who managed to read through it all!