Seven Important Considerations When Growing a Product-Based Business

Seven Important Considerations When Growing a Product-Based Business

There are several important considerations when it comes to starting and growing a product-based business. Here are some to keep in mind.

1. Digital versus Physical

A lot will depend on the kinds of products you sell, digital versus physical. Digital is far easier because there isn’t any warehousing, inventory, picking, packing and shipping, and so on. On the other hand, physical products are often extremely popular.

2. Knowing Your Niche

Choosing the right topic or niche is essential if you are to make money and hopefully not start to get bored with what you are doing. You need to determine whether or not you have found a paying market, and if so, what kinds of products those interested in your niche are buying.

3. Going Head to Head with the Competition

Some new business owners make the mistake of thinking they need to come up with something completely unique. The truth is, if it is not already sitting on store shelves, or you can’t find similar eBooks and multimedia courses, there’s probably little demand for it. You can go head to head with your competition by offering similar products at the same or a slightly lower price to start gaining a market share. It’s easier than you think because you will simply be offering things you know people are already buying.

4. Price versus Value

As a new business owner, you may be tempted to price yourself lower than your competition in order to get some sales, but don’t drop your price so low that your target audience might wonder if there’s something wrong with your product.

Price is also not the only consideration when it comes to your prospects making purchasing decisions. There is value as well. Compare two digital products side by side, for example. Your product might be similar to others on the market, but offering great bonus items plus various extras like checklists, templates and other items your audience can really use will create a higher perceived value.

5. Positioning Yourself as an Expert

Don’t sell yourself short when it comes to starting your own business. Make the most of whatever past experience you have in that niche or industry, and knowledge you possess, to position yourself as an expert worth paying attention to. It will make it easier over time for prospects to recognize your brand and come to respect it.

6. Understanding the Logistics of Selling Physical Products

Perhaps you have invented a product you feel sure people will love. You’ve done your market research, surveyed your target audience, and are confident it is going to be a winner. Now you have to transform your idea into reality. There are many steps involved before your first unit is ever sold and arrives in the mail at the customer’s home. This process can take months or even years depending on what mistakes you make or blind alleys you go down.

Fortunately, there are examples you can follow of successful entrepreneurs who have gone before you and outlined a general formula for success. Books and eCourses can help you follow that formula.

7. Having a Frugal Mindset

You need to be frugal so you can minimize costs and maximize profits. Know what everything costs, down to the last cushioned back and roll of tape used to send out your orders, or what your warehouse/fulfillment house is charging for them to be sure you are getting the best deal.

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Four Important Considerations When Growing a Service-Based Business

Four Important Considerations When Growing a Service-Based Business

Growing a service-based business has never been easier thanks to the internet. Having said that, the main issue is how to grow it strategically in such a way that you have regular income but are not working 20 hours a day. A steady flow of leads, projects, and recurring or passive income can help you boost your profits and still maintain a work-life balance.

There are several main considerations when it comes to growing your business. Here are four to think about as you formulate your growth strategy.

1. Marketing Your Services

From the moment you start your service-based business, you will have to look for clients and projects, and then set time aside to do them well in order to get happy customers, good reviews, and hopefully repeat customers who will be glad to keep using your service. These are the main ingredients to a successful business.

When you are first starting out, you will have to contact prospective clients, look for work on freelance websites, and more. You will need to learn about what makes a good proposal that you should apply for, and the right clients to work for.

It can be tempting to try for every project when you are first starting out, but some can be more trouble than they are worth. You also hope you will get nice clients who will give you a good review that you can use as a marketing tool, but not everyone is reasonable and difficult clients can really drain your energy.

2. Building Relationships

It will take time, but ideally, you will eventually get to a point where the business comes to you, and you can pick and choose your projects. It’s all about building relationships with clients and making yourself a valuable part of their team.

This means being reliable, hitting all your deadlines, and communicating well. You should be responsive via your communication method of choice, such as email or phone. If you are working on a long project that will take more than a couple of weeks, do your client the courtesy of giving them updates every so often to reassure them that you are on track.

If anything unexpected happens, inform them sooner rather than later. Better to let them know the project might be a day or two late because you are sick with flu, and ask them if it is okay for them to wait, than to just assume.

3. Billing for Your Services

You can charge on a per-project basis, or consider offering a package of service for a fixed fee each month. For example, if you are ghostwriting an eBook for a client, it makes sense to charge a flat fee. If you are helping someone upload content to and maintain their WordPress site, a monthly fee might be a better option. You can then create invoices in PayPal ad get paid easily.

4. Positioning Yourself as a Specialist/Expert

You can make a good deal of money as a generalist, such as a virtual assistant willing to do a range of tasks, but there can be more money and prestige in specializing. For example, you might specialize in creating PowerPoint presentations or managing WordPress accounts.

You can also boost your expertise in your niche or industry by writing eBooks, presenting webinars, and so on. These can all be lead magnets for getting people on your list and willing to try your services.

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