Everyone has wanted to start their own business at one time or another. Most people have great ideas and ambitions in the talking stage. It is the action that is lacking. Whether it be no motivation, lack of money, or just plain fear, the talking stage is where the majority stays. I am here to let you know, it is not that hard. Nor is it as expensive as you think. I want to guide you step by step, through the process of being your own boss.
Step One: Make a list of everything you are familiar with. It doesn’t matter if it is apples or zebras, everyone has a knack for something. It could be plants or animals. Maybe you love cars. You could be into arts and crafts. There is something that everyone you know hears you talk about on a regular basis. For this example, we are going to use crafts. With a little intuition, you can apply these techniques to any product.
Step Two: Research. Research. Research. Go on-line, or to the library, and see what wholesalers are listed. The best way to do this on-line is to put the phrase “to request a wholesale catalog” in your search engine. Make sure to enclose it in the quotations. There will be more results than you know what to do with. I didn’t say this was going to be quick, just simplified. Print that list out, if you need to. But go through every site, and choose the ones you feel you would benefit from. You can go on-line at the library to do this, or go to the research department and ask for Thomas Register’s books. These books list almost every company doing business in the United States, complete with contact information.
Step Three: Get a vendor’s license. These are sometimes called resale tax licenses. You can get them at your county auditor’s office. Usually, the cost runs less than $50. You will need to supply personal information such as social security number, address, type of business, and the name of your business.
Step Four: Contact those wholesalers and ask to speak to a representative. This is where you need to ask lots of questions and get real friendly. Your representative can help you more than your banker, at times. The reps know when the trade shows are, when the sales are, what is hot and what is not. They are trained to see the trends in your industry. Listen to what they suggest and understand they are in the position to help you. If you don’t succeed, they don’t make money. You need to find companies that require little or no minimum order. A company that has next day or two day delivery is great also. I only dealt with companies that had no minimum order and could get my product to me within three days. I also made sure I only ordered what I could pay for up front. You want to ask the reps to send you a wholesale catalog and any samples that they can. Believe it or not, many companies are more than willing to send samples so you know exactly what you are buying.
Let me make a note here. I started a home party plan as a bet. I was told I could not start a business on $25. I took the bet and in 6 months had a store open. When I opened the store, I didn’t owe anyone anything. I never took out a bank loan. The business was very successful. You can do this too. The $25 was the cost of my vendor’s license.
Step Five: Make a list of the products you want to carry. Don’t ignore the ones you don’t like. Every one is different. Just because your favorite color is purple, doesn’t mean someone else’s is. You can overwhelm yourself with this step. At first you will want to offer everything available. You can not realistically do that. I suggest starting with 25 to 50 products, depending on your interests. I said I would use crafts as an example for this writing. So you could sell craft kits. You could call it craft in a box. The consumer buys the box with everything in it to make a finished product. It could be a wreath or a garland. Maybe a stuffed animal or candles. It might be soap or a plaque. It’s your product, you decide. Yet do not limit yourself. You can sell candle scents or wax. Maybe findings for scrap booking. Or even grapevine to make a wreath. You could sell glues and scissors, paints and finishes. The list goes on and on. Like I said, this step can be overwhelming. Just choose wisely and listen to your sales rep. You can even ask other crafters what they would like to see available.
Step Six: (optional) Go to a trade show. You can see the products up close. You can talk to others in your field. You can meet your sales rep. You can see new products that are on the market. You can see the trend of the market. I love trade shows. It is my favorite part of the business. You will find it fun and a brand new experience.
Step Seven: Here we go with the lists again. This time, you want to make a list of everyone you know. Everyone! You might be surprised to find who else is interested in what you do. This may sound mean, but weed out the ones who have a very small circle of friends or family. You are trying to start a business, so you must keep in mind that you want people who will spread the word. The ones who all run in the same group will eventually loose interest. You need people who can afford what you have and are willing to try new things. You are going to call these people and invite them over for a small get together so they can see what you are up to. I suggest limiting the number of people you invite to 10 or 12. This is going to be your first party, you don’t want it to turn into a chaotic social event. Set a time and date that is convenient to you. This is your business, on your time. I will warn you, that will change. You can grow into it. I did.
Step Eight: Know your product. You can not sell what you don’t know or believe in. You need to be able to answer any questions your customer comes up with. Again, your sales rep can be your best friend here. They are trained to know what they sell. They can even help with suggested retail pricing. Most industries work on a keystone pricing system. That means if you paid $5 for it, you sell it for $10. Some items can sell for more, some less. You will be able to judge the price when you know your product. Never misrepresent the product. If you are asked a question you don’t know, say so. Tell the customer you will gladly find out for them. Then do it. Never leave them hanging. That is a potential sale that you want.
Step Nine: Do a practice run. Set up a display table to show off your merchandise. Make a set of cue cards if you need to so you know exactly what to say about each product. You should practice out loud as though you had the customer there. Time yourself. You don’t want the presentation to go more than half an hour or so. Take a break in the middle if it takes longer. Run through the demonstration and order taking scenario, just as if it were real. You may be surprised to find you have questions that pop up in your own head. Get them answered before the real party. You will be prepared, and your customer will see that.
Step Ten: Have the party. Enjoy yourself. Believe in yourself. Present yourself in a confident manner. After all, you are now the expert who owns your own business. After everything is said and done, you will want to sit down and count your money. That is only natural. Now the business person has to come out in you. What could you have done better? What product should you have had, that you didn’t? What questions did you have to answer? What product did they show the least interest in? How much profit did you really make? And last but not least, how much are you going to reinvest in the company?
I know this is just a basic overview. I hope it is enough to get you started. There are many things I didn’t mention like order forms and business cards. I think that if you have enough initiative to take these steps, you will learn along the way just what is needed to start your own business and turn it into the success you have always talked about. Good luck.
