Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$63

$200

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$75

$4,786

Specific Industry Expenses

$0

$500

Total Startup Costs

$7,874

$69,947

Davek Umbrellas

davekny.com

369,389

Terra Outdoor Living

terraoutdoor.com

431,472

TUUCI

tuuci.com

599,773

Huifeng Umbrella

hfumbrella.com

931,292

All American Outdoor Living & Patio Furniture

allamericanoutdoorliving.com

1,045,273

unknown

imagenbrands.com

1,059,047

Eurolux Patio

euroluxpatio.com

1,122,897

Foxumbrellas

foxumbrellas.com

1,322,609

Welcome

fultonumbrellas.com

1,388,658

Sabrett Hot Dogs

sabrett.com

1,439,540

PROSHADE

proshade.com

1,515,244

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Meaningful business connections

You never know who you will meet as a umbrella brand. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Easy to encourage "impulse buy"

In the umbrella brand, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.

Unlimited income potential

With starting an umbrella brand there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Amazing perks and discounts

Working in the umbrella brand comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A umbrella brand can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Low margins

The gross margins for your umbrella brand are typically around 13%, which can make it more challenging to incur new expenses and maintain profitability.

Taxes

As a umbrella brand, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

High overhead expenses

With starting an umbrella brand, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.