The Chicken and the Egg…and the Entrepreneur
So, what in the heck could the age-old “chicken or the egg” problem have to do with an entrepreneurial e-commerce company? Frankly, Shawn and I have been asking ourselves and our mentors the same question! However, this question has a surprising amount of applicability to a new business.
Basically, the “chicken or the egg” question boils down to “where do you start?” In our case, we need to decide which group of customers we should “go after” first. SeamBLiSS is all about bringing independent designers and everyday people together; thus, we have two customer groups to choose from: sellers (designers) and buyers (shoppers). So, which group should we sign up first?
On the one hand, our wonderful designers are our source of revenue. They post the great items, which then sell and lead to $$$ for the designers! In addition, the designers are the ones who sign up for our monthly subscriptions and listing fees. From a purely financial standpoint, it seems like we should focus on getting designers to the site and using it actively before attempting to attract the end consumer.
But, if there are no buyers to actually PURCHASE these garments, nobody will make much money, SeamBLiSS included! Also, if there isn’t anyone around to buy a designer’s work, what’s the incentive for the designer to stick around and keep posting their items? Why in the heck should they pay for a service that’s not going to bring them any sales?
Anywho, Shawn and I are still working on solving this age-old problem. We’re currently leaning towards simultaneously signing designers and consumers, but we’ll get back to you and let you know how it went.
Now, time for some eggs. Or maybe some chicken…