eCommerce Tycoon

**seraphi** · 04-12-2012, 11:28 AM

Hello all,

Before i start, i have to put out a disclaimer that i read a post that was similar to this. So i understand that it looks like a ridiculous thing to start and you would need a lot. i am a complete newbie but not an idiot. i have the idea but just want to see whether i honestly can't do it at all.

Basically i just want to know the process of starting this type of company from the ground up in as much detail as can be spared, including the capital and perhaps any organisations i would have to register with and also the fraud detection programmes/companies i can look into.

And incase there are still some people out there to whom this post is irksome, i should just say that i, unlike the previous poster on this topic, will be offering my services to the african market (i'm african) where paypal and such companies have a very weak presence and as internet usage is increasing day by day i think it would be a good opportunity.
So please be straightforward but kind.

Thanks for your advice.

**chrishirst** · 04-12-2012, 02:11 PM

There is a very good reason why many merchant systems and payment gateway providers have a limited or weak presence in many countries and/or "developing" nations AND will not even accept or provide accounts to and from those countries.

Your first task should be finding a bank that will provide you with clearing services (in principal at least) and an insurance company to provide you with financial cover.

Then of course you need sufficient financial backing to run PCI compliant server(s) and systems for the several years it will take before you reach "break even" point never mind turn a profit.

You should also read up on PayPal's history and what it to to become what they are now.

The have done some very agressive marketing. One of their campaigns was to give $10 to every new account signup. Also their founders were in already in fairly related industries, Peter Thiel was a hedge fund manager and venture capitalist, Max Levchin was in computer science and a computer security specialist, Elon Musk had a programming background and a business degree.

These people were real entrepeneurs and innovators, and there has been many attempts to copy their success.

You need FAR more than an idea it might be "a good opportunity" to make it become a real working proposition.

**Digmen1** · 07:01 PM

I want to start up a search engine company to rival Google.
Please tell me what I need.

Then I will devise a new operating system and set up a company for that.

Then maybe mobile phones or space rockets.

Sorry I just noticed that you are in Africa, where of course there may be more opportunities.

I agree with Chrishirst you will need some good financial backing, and therefore you will need a good track record.

**payment proof** · 04-20-2012, 12:02 AM

Starting a company like PayPal would require a huge initial financial investment I would think. How much do you have to fund this start up or how are you planning on financing it?

**algozone** · 04-21-2012, 11:18 PM

Not to mention the challenge to gain customers trust in the service and convince them to use it. Very competitive industry that requires lots of funding and technical platform support and constant improvement.

I think it very unlikely to gain big share in this market, only if you have connections to the bank or other channel that will provide leads to you.

**payment proof** · 04-22-2012, 10:54 PM

Quote:

Originally Posted by algozone

Not to mention the challenge to gain customers trust in the service and convince them to use it. Very competitive industry that requires lots of funding and technical platform support and constant improvement.

Good point. Even if you get the huge amount of start up capital to fund it, you'd still have a ton of competition. I wouldn't want to go up against PayPal as a brand new payment processing company.

**facecap** · 04-24-2012, 11:42 AM

You need lots of things, starting with a good lawyer and CPA. Funds transfers are (rightly) a highly regulated industry

**jim222** · 02:14 AM

Trust is the first one; you need to buildup trust so that people give you their money to pass to other people.

I guess a lawyer is the second...

**donovanjames786** · 08-22-2012, 03:02 PM

You will need a lot of capital. At least Basic knowledge of all the required platforms. Detailed knowledge of all law and actions or at least you should have a good lawyer to represent you and much more things.

**lukewildman** · 08-24-2012, 09:22 AM

How much money you got? cos it won't come cheap.