It’s easier than ever to start your own business, but unfortunately, it’s equally easy to get in over your head. With wholesale liquidators, e-commerce on the rise, and easy shipping, you can make a go of your own business in 2019. You just have to be smart about it.
Nail Down Your Specific Business Idea
We all have days when we’re ready to be our own boss, but that’s different from having a specific idea for successfully entering an industry. You need to find a niche where you can compete with the big boys.
The more specific your plan, the greater your chances of success. This step is so important that it’s worth looking into product project management services to help you build an effective plan.
Research All the Market Factors
Start by doing your market research. What can you sell, and is it better to sell online or locally at a brick-and-mortar location? Does the market have room for your company? How can you undercut the competition to establish your brand quickly? Here’s some of what you need to learn:
- How effective are your competitor’s current practices?
- What do consumers like and dislike about the way things are being done?
- What are fair prices for the types of products you want to sell?
- What factors do consumers consider when they purchase these products?
Research can make or break your business plan. If you do it well, you’ll learn who your competitors are and effectively target the consumer segments you want to reach. If you do it poorly, you’ll be striking out blind and are likely to fail.
Choosing Your Inventory
Once you know what niche your business can fill, you need to source inventory as cheaply as possible. This is especially crucial at the beginning of your company’s existence, when profit margins are thin and you need to be able to offer the lowest possible prices as you build a customer base.
The wholesale liquidation pallets offer a great way to source quality goods at deep discounts. These pallets offer closeout goods, retail returns, and refurbished goods from big companies like Walmart and Amazon. You can find out in advance what condition the goods are in and cut out the middleman by buying directly.
Another benefit to buying pallets of liquidated good is the possibility of dealing in any volume you need. That makes it simple to step up your inventory as your business expands.
Determine Your Financing Options
Once you’ve done your research, sourced your inventory, and have a solid idea, you need to get financing. You have a couple options for getting the money you need.
Use Your Personal Funds
Some people use their savings or cash in retirement funds to start a business. You can use retirement funds without taking a tax penalty, but using your own funds is also risky.
Leverage Your Property
Another way to secure financing is to use a home equity line of credit or refinance a mortgage.
If you choose either of these, you risk losing your most valuable personal asset should your business fail. Depending on your personal financial and family situation, this could be catastrophic, so tread cautiously.
Get a Loan
Getting a small business loan is typically the most expensive option for financing your pallet business, because you’ll have to pay interest, but it’s also the safest route. Your business loan is separate from your personal assets, so even if your company goes under, your personal financial standing remains stable.
This year could be the start of a whole new life for you. Make sure you have a sound idea, do your research, source quality wholesale goods for inventory, and then be smart about financing. 2019 could be the year you start working for yourself and live the American dream of becoming an entrepreneur.