Businesses run from home allow entrepreneurs to earn money while saving on expenses while still being able to take care of their children. Selling products from home can be very profitable when the demand for the product is very high. Some sellers make their own products, while others seek products from suppliers. The right product, combined with efficient organization and time management skills, can help you become a successful entrepreneur.
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Part 1 of 4: Strategies for buying cheap
Step 1. Survey what types of products you know and might sell from home
What's your favorite? Some people like a job because it is the same as their hobby. What is your hobby?
- If you are skilled in crafting, sewing or cooking you may be able to make and sell displays, accessories, necklaces, bracelets or snacks.
- If you have a keen eye and can bargain for the value of an item, you may be able to buy and resell antiques.
- If you work with a business network and enjoy socializing with customers, you might want to try becoming a consultant to entrepreneurs selling their products from home.
Step 2. Know what makes a product “really good
“To be a successful entrepreneur from home, you have to make sure you don't just sell products that are already widely available in the market. Make sure you're selling a product that's new – convenient, compact, and cheap to manufacture:
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What makes a product “really good”:
- Convenience. Your products make life easier for your customers
- Concise. Can be carried anywhere. Which also means it's easy to manufacture.
- Price. Not too expensive. Try to take margins around 50%.
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What makes a product unattractive:
- Too complicated. If your product demands a service of a high standard, leave it.
- Imported from a big supplier. If the product you want to try selling from home is already available at HyperMart, don't expect much.
- trademarks. Unless you want to deal with the law, create your own trademark and don't use labels from companies that already own the trademark.
Step 3. Understand the competition in the market
For example, now you have decided to sell miniature craft accessories – miniature chairs for doll collectors, for example. The next question is that you should consider “how good is this business proposition?” You may be the best miniature craftsman, but that doesn't matter if no one buys the miniatures, or when the market for dolls is already very competitive.
- Market size is effectively seen from how much money is spent on the product you are selling. You can research market size online by looking at journals or government records. The bigger the market size, the bigger the market opportunity.
- The amount of market competition can be a big consideration for your first step. If there are many people who are pursuing the same thing, then your efforts will definitely be very heavy. But if few people do this business, you have a very big opportunity to get a lot of profit.
Step 4. Whenever possible, provide your product with wholesalers
Wholesale is buying the product you need directly from the supplier, so you can avoid having distributors or brokers. If you can avoid having distributors of every product you want to buy, the profits you get can be even greater.
- You can get wholesale prices by shopping in many places. Look for suppliers of spam emails that accidentally entered your email or call and ask for samples of their products. A sample will let you know the quality of the product you will order later.
- Be sure to ask for a minimum purchase. If you need to buy 1,000 sets of dryers, it's not a good investment, especially if you're starting a business.
- If you sell directly from a company, register yourself to get the initial product for your business.
Part 2 of 4: Building a product and business
Step 1. Start creating your product
Only a few of the sellers are successful in buying wholesale goods and then selling them at a rather expensive price to earn multiple profits. But what you're most likely to do is buy raw materials from a supplier and then put some time and effort into making your own product.
Step 2. Test, test, and test again
You may think that your product is very good, but every customer must be conscientious. Customers must have used the product sometimes in the normal way, sometimes in the “wrong way.” Customers sometimes also ask themselves, “is it worth it for me to spend this much money?” Test your product on family, friends, or even (especially) strangers who might give you better advice.
An easy example is this, you order 100 vegetable peelers in wholesale, then you sell them again with a profit of 100%. It's not a bad idea if your sales are very good. But what if the vegetable peeler broke when exposed to hot water, and a week later the customers complained to you, you will face dozens of angry customers because their dish dryer broke because of your vegetable peeler? When you've tested the vegetable dryer, you'll know it's not a good product. If you haven't tested it, you're compensating, losing money and your reputation will be damaged
Step 3. Create a taxpayer identification number
A tax number will help the government manage taxes related to your business. In some cases, you will need to register a tax number in your province before you start a business.
Step 4. Open an account book so that the income from your business does not mix with your personal money
This will also make it easier for you to calculate your profits and expenses, although later you can transfer the money to a personal account when you have calculated everything.
- It also makes it easier for you when it's time for you to pay taxes.
- Connect your PayPal account to your account to make online transactions more efficient.
Step 5. Buy business software for your computer or laptop that makes your product inventory data more organized and organized
This will be a little tedious, but it will be better to do this rather than having to deal with the tax authorities when they do an audit.
You may be able to hire an accountant to record all incoming and outgoing data
Part 3 of 4: Effective advertising and good sales
Step 1. Advertise the business and products you sell
A product usually sells for three reasons: repeated purchases (meaning that buyers are happy from the first purchase and then come back to buy it); word of mouth (a review from a public figure); and advertising. If the quality and usability of the product is very good, you no longer need to wait for repeated purchases or word of mouth. That's where advertising comes in. Advertising is a way to build interest in customers by telling them how to use the product.
- Make business cards and share them with people you know or with your customers.
- Create a page on a social media site and invite the people closest to you to follow the development of your business. Motivate them to invite their relatives, and make a regular update of your product so that your customers can immediately find out.
- If you work directly for a company, review the product so you can promote it to others.
Step 2. Make an experiment, don't just rely on PPC or social media
PPC stands for “pay per click,” which means that you will earn money from internet users every time they visit a site. However, there are still many people who are a bit difficult to implement PPC. Social media, such as Facebook and Twitter, offer places to advertise as well. Social networks like these are great for branding, but it's not that hard to get a quick sale. Try these two different methods, but don't waste your entire budget on your advertising.
Step 3. Arrange a way so that your customers can get your product easily
Unless you want to sell it directly from your home (strongly discouraged), you should put it on an online sale. Here are some of the advantages and disadvantages of selling online:
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Profit:
- The initial capital is light. You don't need to buy a domain. Just put your ad on a site like eBay.
- Reach great distances. Even if you're in New York, you can sell the product all over the world.
- More relaxed and comfortable. The online marketplace, allows buyers to order products with just the press of a button that can be done anywhere.
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Loss:
- Security issues. Credit cards or other types of payments can be breached, leaving customers disappointed.
- The difficulty in setting the time to send an item. For example, sending goods to Tanzania can take weeks.
Step 4. Consider creating your own site
If you want to sell products online, create a website. Connect your PayPal account to the website. Design it in such a way that it is easy for customers to buy what they want. People who like the layout will find it easier to spend their money.
This will make it easier to sell your product. There are now tons of online services, like Shopify, that can help you increase your sales volume for you. The less commission you give eBay, the more money will go into your pocket
Step 5. Sell your product on eBay
Many items are sold on eBay, the largest selling place on the internet. But the bottom line is simple: Make a list, decide how you want to sell it, then ship the product once it's sold. Here are some things to keep in mind:
- Product photos are very important! Photos must be clear, attractive and attractive. Your product will sell better if people already know what your product looks like.
- Choose an auction format or a fixed price format. The auction format is great for rare items where people will fight over each other, while the fixed price format is great for items that are already common in the market.
- Be a friendly salesperson – to increase your good reputation. Later your reputation will be useful when there are other people who sell products of the same type and price.
Step 6. Sell on Amazon
Selling it on Amazon is pretty much the same as on eBay, only there is no auction format. To sell them on Amazon, all you need to do is create a profile, list your products (with descriptions, conditions and prices), and ship them immediately when someone pays for them. Just like on eBay, watch your attitude so you don't damage your reputation.
If you want to start selling your products on Amazon right away, you can create your own storefront, making it easier for customers to find the items they want
Step 7. Sell your product on Etsy
Etsy is a digital marketplace designed to sell crafts. Unlike eBay and Amazon which sell just about anything, Etsy focuses on selling handicrafts. So if you have a talent for making crafts such as necklaces or musical instruments, Etsy can be the first choice to sell your work.
Step 8. If you are an adventurer, consider selling door to door
Whether it's to supplement your online income or it's a calling from the heart, door-to-door selling is still a way worth trying. Of course this is not easy, but if your knowledge and determination are put together, it can certainly increase your personal income.
Part 4 of 4: Maintaining success
Step 1. Send the products that have been sold immediately
If you want to make a good impression on your customers, pack your product properly and safely (make sure that the product will not be damaged during the shipping process), give it to the postman, and the product will be delivered as soon as possible to the customer's house. That's how easy the process is.
Step 2. Offer refunds and exchanges
Unfortunately, some customers are not very satisfied with the products they have paid for. Ask them to return/exchange the item, but don't refuse if they ask for a refund. This will impact your reputation on Amazon/eBay/Etsy sites.
- Pay attention to suggestions given by customers to make your product better in the future. So that no more bad designs, bad interactions or product defects.
- Always remember that the customer is never wrong, even if you are in the right. This is the toughest side of the business world, but also one of the oldest rules. And even if they'll "feel" better after an adverse exchange, it won't really hurt you.
Step 3. After a few weeks, market the new product
At first, it's best to focus on just one or two products, so you don't waste too much time creating descriptions of each of your products. Once you've got your footing in the market and have increased customer trust on multiple sites (like eBay), it's in your favor to try selling other products, but ones that still have something to do with the former.
Step 4. Slowly but surely, start selling in bulk
If you really want to make money, you need to check your sales progress after a few months and look for ways to increase your income. Here are some tips you can try:
- Get the right wholesale price. When you buy in large enough quantities, the wholesale price will become even lower.
- Make a recurring income. Think of a way to keep the business from stalling. It could be an email, a subscription plan, or whatever keeps the business going.
- Ask for help from others. Can a few pairs of hands and feet help you increase sales? Especially if you only sell on a part-time basis, constant trips to the post office can lower your income.
Tips
- Leave your young children, even if it's just a part-time job, you can have the opportunity not to be distracted while you're working.
- If you want to sell products in your own home, arrange the area in your home in such a way. If you want to deliver the goods to the customer's house, bring a bag or the like to carry the customer's ordered goods, which if it also fits other customer's signboards.
