How To Start a Product-Based Business at Home

Start Your Business From Home With A Solid Plan

So you have a great business idea where you know you can make the big bucks you always dreamed of. Hurray for you! You are now probably thinking about how to start and what do you need to look out for to assure your product sales system is efficient. With the pandemic and its regulations, you now don’t even need to wait to sell your products in a geographical location but can actually start selling from the comfort of your home. Statistics have shown that there are 15 million home-based businesses currently. Should you be aware of some common mistakes you could make? 

These daunting thoughts can dampen your spirits and bring your motivation down. We have compiled a list of crucial things that you need to know to create a successful home-based business.

All About Product-Based Business

Product-based business involves buying and selling a product or an array of products. You could be a manufacturer, wholesaler, distributor, or independent retail store owner who deals with products. You need to create a business that will involve buying and selling products and at the same time creating a profitable margin for yourself. The purpose of the guide below is to help you focus on what you need to know when your end goal is to sell to a customer.

Research on Your Target Market

This has to be the first place to start from. All you need is a laptop and internet connection. Most business owners skip this crucial step which involves what you want to sell, to whom, and how much. A good start for this research from home and understand what your competitors are offering and then create a plan for your product on competitive analysis. It doesn’t necessarily always have to be a cheaper price than others. You can offer more convenience while shopping or some other factors that could be missing from your competitors. Also, this will give you a good idea of finding the right supplier. You can search on Goggle and visit websites to find wholesalers who give you their best proposals to choose from. 

Choose The Right Supplier

There are many things to consider when you are finalizing a supplier. You will need to take into consideration if the supplier supplies locally or will you have to travel a distance or arrange shipment for your product. This will be another added cost that will reflect on the final price of the product. A supplier who is in close proximity to you can give access to products easily, quickly, and in a cost-effective manner. Other than the price you will also need to make sure that the product you are receiving is of high quality because that will directly reflect the reputation of your business in the long run. If you are looking at an array of products for your online store then it is best to find a wholesaler who can provide you with the same. 

Storage of Items

You will need to find storage space for your items which will preserve their quality for a longer time. The storage space will also depend on the type of product that you wish to sell. While jewelry products will need small space for storage, at the same time furniture items will need a larger space. If you are not looking at investing heavily in the inventory, then look for medium-size storage well in your house. What more, you can easily even build one yourself

Fair Pricing

Pricing is one of the biggest factors that can make or break your business. This will require careful consideration and balance. True that you want to be competitive with your pricing but don’t forget that you also need to make enough money to keep the business running. When your prices are too low, your customers will question its quality and not choose it as their first option. However, if you price the product too high, people will notice that too and consider it to be a rip-off. Research on the best price you can offer which reflects the quality of the product and at the same time makes a profit for you too. 

Receiving Payments

You need to provide your customers with as much convenience as possible to pay you. Finding secure payment methods for your customers to be able to pay online is crucial. At the same time, you will need to make sure you can keep a track of your sales. Ditch the pen and paper for manual accounting and invest in cheap upc barcodes for amazon to help you move faster and more efficiently. This will help you focus more on sales than spend hours doing inventory as when the sale is made, you can swipe the barcode and it will automatically change the availability in your stock. Explore more options to keep your accounts and finance as stable as possible with easy to use software and system which suit you best. 

Customer Service

If you are not representing your online shop then you will need to hire someone. Even on online platforms, customers can need help and would like to chat with the customer service representative to solve a problem.

One key point to look for when hiring staff is their approach towards customer service. When your customers have a query, they need to feel that they are appreciated and receive the necessary help. Though it can seem like a seamless transaction to make, it will not always be so.

You need to make sure that on that odd event wherein a customer is upset, you can still handle their problems and solve them. Adding a return policy to your product is a great way to earn the trust of your customers. Always make sure that you manage your stock levels and don’t run out of a product too often, especially during holiday seasons. 

Subscription Management Software

Running an ecommerce subscription service? If so, it’s important that you give your customers the power to make changes to their account instantly, without having to jump through hoops or wait for a response from your customer service team.

In cases where changes must be made quickly to avoid further issues, subscription management software is essential. For example, ecommerce subscription software by Chargebee enables both customers and your support agents to make adjustments to the frequency of their deliveries, edit personal credentials, and alter their billing details.

In the event they decide to cancel their subscription, they won’t have to contact your customer service team either — they can do it themselves (freeing up your team to deal with serious issues).

Add Elements One At A Time

After you have started your business, you will still be humming with ideas to improve. Hold your horses as you learn the basic ropes of your business. Move forward then towards developing a marketing plan like building a website and move up towards paid advertising. The same goes for adding new products, wait till you know what is in the demand and what is not, for a longer period. This way you can avoid having lots of stock of a product that was sought after only for a season and doesn’t sell at other times. 

Remember, to be able to build a business empire from your home will require a strong base of the foundation. By following the tips stated above, you can get started with your journey of becoming an entrepreneur. Doing so will reduce your mistakes as you try to achieve your business-related goals.

Pam Wiselogel
Pam Wiselogel

Hi, I'm Pam! A corporate girl turned entrepreneur who has been working from home for over 20 years and loving it. From a corporate IT Director to an online business owner, I found success while working remotely (sometimes in my PJs). I've been able to find balance in life and career and love to share what I've learned with others. With my master's degree in software engineering and a career in technology, my drive is to help others learn how to bypass the hurdles and technology challenges to gain the confidence to build the dream business they've always wanted to reach financial freedom. My work has been quoted on Forbes, Bloomberg, European Business Review, Hive, and Business Partner Magazine to name a few. Click my little head above to read all of my posts!

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