Hello friends, hope my Pooja’s Business Insights series has tickled the hidden business person inside you a bit ☺️ . So, lets continue without wasting any more time.
When you start out, you may feel overwhelmed by the abundant options that you see. Or, on the other side of the radar, you may feel short of options that can be explored, you may feel clueless about where to start.
If you are patient, you can over a period of time, try to create a niche product. It should be something that isn’t already easily available for people, and as I always say, it should add value to people’s lives.
Another option is to provide a product that may not be rare. Then why would people buy from you? You provide competitive prices! And your delivery should be good.
People are emotional and they need to trust you. Trust takes time to build. So, build trust. Provide/deliver the product such that they can have long lasting faith in you. A happy customer also gets in more customers ☺️ .
On a very high level, businesses can be divided on the following basis:
In this method, there is a third party supplier. When you get an order from a client, you pass the order to the supplier. Supplier then packs the product, and directly delivers to your customer. Simple, isn’t it ☺️ .
The major advantage of this method is that you don’t need to maintain an inventory. That way, it’s easier and cheaper to start with.
The disadvantage, you don’t have much control over the quality of the contents delivered. This can cause problems if defective contents are delivered to the customers. Profit margins are lesser.
2. Inventory based
Here, you maintain stock of the product with you, like a brick and mortar store. Technically, it requires some investment as you need space to maintain your product.
Advantage, you get to monitor the quality of the product, and better chances of keeping the customer happy.
Disadvantage, you need space. You need to maintain inventory. Also, you need to take care of delivering.
3. Made to order
If you are an artist, or into some niche business, you may make as per order. Suppose you create hand painted jewellery, then you can make when you get customer orders. However, you will need to have some samples for the customers to choose from. This process is slow, as you will produce after you receive order.
This model works when your clients really love your work, and are ready to wait.
Hope friends this was helpful. Next article will talk about some common business models used these days. Have a great day ☺️ .