So, as I made mention in previous posts, I'm in the process of starting up a small business. Eventually I will be selling several different custom-made items, but for right now, I'm focusing on custom phone cases to build up my revenue in order to expand my business. By the first of the year, I'd like my business to be in full swing! Creating a business, no matter how big or small takes time, patience, money and planning. I've had to think about a lot of different variables when thinking about what I wanted to do for a business and how I was going to be successful with it! So, let's get started!
#1. What do you want to make/sell?
This is important. If you're going to stick with it successfully, you need to love what you're going to make and/or sell. Not everyone who sells things, makes them their selves. It just so happens that I want to make what I am going to sell because it gives me a sense of pride knowing I made something custom for someone and they are going to love it!
#2. Who is your market going to be?
This goes hand in hand with number one. Whatever you're going to make and/or sell, you have to make sure there is a viable market for it. You have to make sure it's in demand so that your business will be profitable. Everyone has a cell phone and most people like changing out their phone cases. For maximum profits, you want to make sure it's something that can cater to all ages and genders and that there is a lot of variety to choose from because let's face it, everyone has different preferences on what they like.
#3. What do you want your profit margin to be?
If you do research, you will find that a decent profit margin is 70/30. 70% cost, 30% profit. If your business allows for it, you'd be extremely successful if you can achieve 50% cost, 50% profit. Like with the business I'm going for, that's very achievable but sometimes can't always be achieved depending on what the customer wants and what the supplier availability is for material. Searching around for the best deals for product is a constant job but in saying this, you definitely don't want to sacrifice quality. Word gets around and you don't want it to be a negative one about your business! You have to put money in to make money. Especially when you're making something - trial and error to perfect what you're doing costs some extra money, so you have to plan accordingly.
#4. Longevity of the business.
Typically, most people want their business to not just be successful, but they also want it to last a long time. Cell phones will always be around until the end of time, so I know my business is secure. No matter what you do, you will almost always have competition, but the good news is, when you're making something custom that no one else has, your business is yet again secure. You do want to work on perfecting your craft however if you have plans of people buying what you're selling.
#5. Time Management.
I have a full-time job and this business on the side. Plus, I have a personal life on top of that. You need to have a plan in place to put out product in a timely manner in order to get the highest turnaround from it. The least amount of time to get the product out, the better. Leave the more time-consuming projects for commission-based sales only, but also have product that customers can choose from that is done and ready to go! You also want to avoid getting overwhelmed and burnt out, so set realistic goals and don't make promises that you can't keep. If the product that you're making takes a significant time to make, communicate this to your market. Example: Processing time may take 7-10 business days due to the nature of product being custom created!
There are definitely more things to think about when starting a business, but these are the top five that I've spent the most time thinking about!
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