2017-12-18 00:00:00TechnologyEnglishLearn how to launch and grow a product selling small business, including the steps to take and the potential risks involved.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/12/Man-working-at-small-business-product-sorts-clothing.jpghttps://quickbooks.intuit.com/ca/resources/technology/small-business-product-selling/Key Steps and Considerations When Starting a Product Selling Business

Key Steps and Considerations When Starting a Product Selling Business

2 min read

There’s no limit to how successful a product selling business can be, and with the popularity of online shopping, you don’t even need a physical location for your business. While the concept of the product selling business is simple, that doesn’t mean it’s easy to make a profit. If you’ve got the entrepreneurial itch, here are the steps to starting your product selling business.

Brainstorming Product Ideas

Everything starts with your product, which is why you should take your time during the brainstorming process. Start by considering what you’re passionate and knowledgeable about. It’s easier to sell a product when you understand the industry.

Think about how a product can help customers during their everyday lives. Every successful product solves a pain point for a customer. Books and movies entertain people when they’re bored. Fitness equipment helps people get into better shape. Remember that a pain point doesn’t need to be a serious issue, as a product that solves a minor annoyance can also be a big hit.

Once you have some product ideas, evaluate how realistic these ideas are and determine any potential logistical issues. Certain types of items are a natural fit for e-commerce. Others, such as heavy or fragile items, aren’t practical, because it’s difficult to ship them safely.

Finding Suppliers

With your product idea ready, it’s time to source your product. You can manufacture your own products, but this is a time-intensive process that is difficult to scale up as demand for your product grows.

The faster option is to find a manufacturer and either purchase existing products wholesale to resell or hire the manufacturer to develop products for you. Your choice depends on how much control you want and how much money you’re willing to commit upfront. If you purchase products wholesale or sell another company’s products through drop shipping, you can keep your upfront costs low. When you hire a manufacturer to develop your products, you have more control over product design and your product line is unique to your business.

Bringing Products to Market

Patience is important when making your product dreams a reality. This can be a lengthy process, and it sinks many businesses before they even officially launch. Play it safe by planning for your products to take twice as long and cost twice as much as your original estimates.

This is true whether you have your products manufactured or you buy them wholesale. Even when buying products, you still need to check out samples, negotiate with the supplier, order a minimum amount, and wait for your shipment. Once you have a strong relationship with your supplier and it knows what you want, this process becomes simpler.

Continuing to Innovate

The hard work isn’t over once you launch a profitable product. It takes just as much effort to continue making a profit. Successful product businesses are those that continue developing and launching new products.

It’s rare to see a business have long-term success with only a couple products. Plenty of flash-in-the-pan businesses make money from one great product idea only to become irrelevant when they can’t follow it up with anything new. Fortunately, the more you brainstorm and look for new product opportunities, the easier it becomes.

You can make or lose quite a bit of money with a product selling business. If you take your time with each step and choose products that can truly help your customers, your business is more likely to succeed.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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