Choosing The Right Product
Choosing the right product is probably the most difficult thing to do when starting a new business. A good place to start is to look at your own interests. What do you like to do? What are you interested in? Is there a product or service you can create rather than buy from others?
I have mainly sold consulting services and products purchased from others for my own businesses. I don’t feel I am an inventor so it’s better for me to go out and find products to resell. Selling products that have ready-made marketing, like through an MLM business, can be one way to go but can also be somewhat risky when you are too dependent on your vendor.
The better way to go may be to form a type of business, like one that sells technology, and try to find salable products that fit within your business model. There may be a lot of trial and error involved if you do not research the market for your chosen product to see if it can be sold. Concentrate on what you can find out about your product rather than trying to find specific kinds of information. Put it all together and see what the picture looks like…
One rule of thumb for a product is that it must either be consumable or lead to sales of other products, otherwise you will need to get a constant flow of new customers to buy your product. Because it is so expensive to get new customers, your profit may not cover your advertising costs. Another rule of thumb is that the product must be shippable if you will be transacting with customers by mail. If you will be selling locally you can sell anything that can be delivered to you, you may just have to hire delivery personnel if the items are too big.
My next article on starting a business will be on the basics of supply and demand, and how that may affect the kind of product you want to sell. For instance, if you selling a commodity and are not adding value, price will be your only way to compete. It is better to sell a unique product to a niche market…
Please review the following resources for more information: