One of the first questions you’ll need to ask yourself is if the type of product you’d like to sell. Is it a ready-to-use item or is it something that will be a part of another finished product? Ready-to-use items are things like electronics, household items, beauty items, clothing, and media. Components are smaller items; they are the basic building block for something else. Think faster internal parts of electronics or parts for craft hobbies.

Sell components

If you want to sell components, you should ask yourself a few questions:

Do you have a better, cheaper, or more efficient way to make something that already exists?
Your component must improve on what already exists. There must be some reason for consumers and producers to switch to your new component. Put yourself in their shoes: you already have a supplier for a part. Why would you change? The new part must be of higher quality or cheaper cost in order for you to go through the ordeal of changing your existing process. Make sure that you can clearly articulate why your component is worth making a change.

Do you have an innovative idea for a new part design that will make the finished product even better?
This question is slightly different than the first. If you have an idea for a completely new component, you’ll want to make sure that you have carefully tested your product. Let’s say you have a much more useful part that should make a computer run faster. Remember to think about the perspective of the client that may purchase your component. This client will be wary of your new component. You will need to prove to them that your part is of high quality and will have no negative impact on their final product.

Who will buy this component?
Every good and service sold must be targeted to a specific audience. It is always good practice for any business owner to consider marketing strategies when developing a new product. (For more in-depth information on marketing, click here.) When specifically considering the sale of components, decide if you are going to sell to other companies or to individuals. If you’re selling to companies, you will need to have more components available at once. Companies will expect large quantity deliveries. Individual buyers may be satisfied with smaller orders.

Sell a final product

If you want to sell final products, you should think about the following things:

Is this a product that people will need or just something people may want?
No matter how interesting your product is, people must be motivated enough to buy it. When someone walks by your product (or sees it on a webpage), will they be compelled to buy it? Your product must meet some type of need, or else your business won’t be successful.

Is this something you can produce cost-effectively?
It’s entirely possible to design and make an amazing product and still see your business fail. One of the leading causes of this is not considering the cost of actually making your product. A high cost of production will effect the price you must charge for your item in order to be a profitable company.

Who will need this product?
As discussed above, all business owners should be aware of marketing strategies, even during the beginning stages of developing their company. (Click here for more in-depth info on marketing.) Product-based businesses require a well-thought out marketing strategy. This begins with a thorough evaluation of who your target audience is. If you can’t think of a target audience, it may mean that your product is not really a necessary item and will not be successful.

Swyft can help!

Want to get your new business off the ground today? The experienced professionals here at Swyft can take care of the paperwork so that you can focus on nurturing your company.Contact us today!