Decide on a niche

Step 1: What kind of products do you want to sell or what service do you want to provide?

This will be the most significant decision will be made as part of this journey. This is a decision that can be changed as you progress through this, but this decision will be the keystone to all of your future work.

Step 2: Research who is providing these services or products to other in your area

Look around in the area for this service, ask business owners, friends and community leaders if a new provider of this service and/or products would be beneficial to consumers in the area. Often businesses can be underserved or receiving services at too high of a price. Knowing what services are available and their price points is important.

Step 3: What’s wholesale cost for the product or service that would be provided?

If you are going to sell products, Google vendors that sell the items that you want to sell. For example, if you want to sell snacks, candy and drinks common vendors would be Sam’s Club, Costco, BJ’s or even your local grocery store. Are the products something that can be bought through another wholesaler? What kind of quantities would need to be purchased to get products at the lowest price?

Step 4: What pricing would the products be sold for?

Continuing on the sale of products track, what would be a good price that these products could be sold at? This research can be done by visiting businesses that are selling your products today. For example, if you are selling drinks and snacks, visit a dealership or hotel to see what their pricing is.

Step 5: Compare the difference between wholesale and the average retail price.

Is there a solid margin between the numbers you found on step 3 and 4. The ideal margin on products would be at least 50-100% more than your wholesale cost. If you would be providing a service, would you still be able to cover cost and your time with the profit made? If the answer is yes, then you are on the right track to get a good business going.

Leave a Reply