Millions of people everyday spend eight hours or more in a small padded cubicle. The curious thing about it is they choose to do that. They willingly sacrifice a quality of life because they believe it is the only way to support their families. That may have been true 10 years ago but it isn't any longer.
Starting an online business can be the salvation for which many want-to-be corporate escapees are looking. Unlike starting a brick and mortar business, the start-up costs for an online business are very small. Initially, an online business needs only a part-time owner. Corporate prisoners by day can build their underground railroad by night.
There are three key components to running a successful online business. They are determination, profitable products, and marketing skills.
Determination
Of the three critical components, only "determination" can't be taught. Not everyone is suited to be an astronaut or a truck driver. And, not everyone is suited to run one's own business. Determination is a single-minded drive that moves one beyond the minor setbacks of the learning curve. If you tend to start but never finish projects, an online business is not for you. An online business takes staying power.
Profitable Products
Many people have tried their hand at online sales through eBay. After many unsuccessful attempts at finding profitable products, they give up. Finding profitable products can be learned but there are tricks of the trade.
Knowing this, many people get sucked into paying some "eBay guru" thousands of dollars to do it for them. Unfortunately, they find out quickly that they have to find the products themselves. An individual who wants their own online business wants to find their own products. But how?
Depending upon your financial situation, there are six proven ways to find profitable products to sell online. They start with those requiring no investment and end with those requiring thousands of dollars of investment capital. Regardless of the price of the product, the higher the investment, the lower the unit cost of the products. The lower the unit cost of the products, the higher the profit margin. The higher the profit margin, the more money the company makes.
Many people attempt to start an online sales business at the bottom of the product acquisition food chain, with dropshipping. Dropshipping requires little or no initial investment. With dropshipping, you sell someone else's product. When you sell the product, you pay the supplier to drop-ship the product to your customer with the fee coming out of your profits. Typically, the profit associated with dropshipping is very small or non-existent.
A better alternative for those people with little money to invest is consignment selling. Consignment selling is where you sell someone else's product, but you collect a fee of between 10% and 25% of the final sale price. Sounds good, right? It is but it takes a person who is a real self-starter and can negotiate with people. Family, friends, neighbors, local crafters, local businesses without a web presence are all candidates for consignment sales.
With your profits from consignment sales, you can move on to acquiring bulk and surplus products. Working with surplus brokers requires some initiative and internet surfing skills. There are hundreds of surplus brokers on the internet. Choosing the right one is a problem and requires some research skills. However, the profit margins are higher on surplus goods than the other two techniques discussed above. For instance, a Janome Memory Craft sewing machine was acquired at surplus for $99.00 and sold on eBay for $430.00, a very nice profit.
In addition to the three product acquisition methods discussed above, the biggest profit margins and more reliable supply of products is achieved by working with wholesalers or importers. Working with wholesalers, they require you have a legal business and a resale certificate from your state's taxation board. Working with imported goods is more difficult. If you attempt to go directly to the source in China, as a novice, you can lose a great deal of money very fast. Consider working with a reputable customs broker if you choose to acquire product in this way.
All of these acquisition skills can be learned; but without determination, you will not succeed.
Once you have acquired your product, marketing skills are needed to successfully sell your product.
Marketing Skills
Two people with exactly the same product for sale will not experience the same success. The one who wins will have superior marketing skills. Marketing skills include the ability to find customers and then motivate them to buy your particular product.
Marketing starts with identifying the particular customer you will sell to. You do not sell a skateboard to a 13 year old with the same conversation you sell that same skateboard to his mother, or grandparents. Marketing requires you get into the mindset of your customer in such a way that you start to think like them. Without knowing their motivations and concerns, you will never sell them anything. Great marketing is targeted to a specific group of people.
After a thorough understanding of your customer is achieved, you need then to design your offer in a way that appeals to them and encourages them to buy now. All of these skills can be learned and must be learned to run a successful business, online or not.
With a great offer in hand, you need to find customers. Where does your targeted group of customers hang out? What do they read? Where do they go on the internet? You must get your offer in front of their eyes. They won't find you.
There are literally hundreds of methods for communicating your marketing message online and via traditional methods, like advertising. The only ones that will work will be those that find your target market. You can send marketing messages all day without success. If your potential customer is tuned into some other location, you'll miss them.
Marketing skills can be learned. Acquiring profitable products can be learned. But both of these critical skills rest on a foundation of determination. Can you teach an old dog new tricks? Certainly! If the "old dog" is determined to learn.
An online business is not for everyone. However, it can be your way out of corporate America. Never again will someone else set your work hours for you. Never again will you miss a child's recital because you couldn't get away from work. Never again will you sweat making your next house payment. Ready? GO!
Michele Schermerhorn is the president of Online Business Institute, Inc. ? Creating successful online business owners one person at a time. Online Business Institute can be found online at http://www.obinstitute.com.
I recently went to a retirement party with my husband... Read More
'Fear of rejection' is the major reason why individuals looking... Read More
For many of us, telecommuting seems like the ideal situation.... Read More
Do you want to know how to jump-start your professional... Read More
This is a question that you can almost count on... Read More
Cover Letters must grab the reader's interest so that they... Read More
You are looking for a job and you are out... Read More
A recent story in Career Journal begins:"The "midlife crisis" has... Read More
Man is a social animal and survival is his major... Read More
"I have lived in this city all my life. My... Read More
"WOW! I can work from home and make money? I... Read More
There is one little practice that is vital to generating... Read More
Q. I hate my job as a computer consultant. I... Read More
Hunting for a position in a new career field? Trying... Read More
As the old saying goes, "you never get a second... Read More
Don't just sit there and bob your head, waiting to... Read More
You're at a job interview. You're doing great, answering questions... Read More
Unexpectedly loosing your job can be a very traumatic and... Read More
A recent report, titled "The War for Talent" stated that... Read More
Have you ever tried to contact a past employer only... Read More
As you know too well ~ many jobs have been... Read More
Most of us have to work for a living. Since... Read More
Jobs and employment on the Costa BlancaThe Council of Europe... Read More
These days, interviews don't come easily. When you get The... Read More
Janelle Delacorte has been happily answering calls for the Home... Read More
Many employees do not care too much for their bosses... Read More
Never a 2nd chance to make a 1st impression, or... Read More
In today's competitive job market, a first class resume is... Read More
Making a career change is nothing new in today's job... Read More
Job security is an out dated concept. The idea is... Read More
Tales from the Corporate Frontlines: Career Opportunities for New GraduatesThis... Read More
After creating the perfect resume, you then need to distribute... Read More
Fluffy clouds. Chirping birds. Green trees. Colorful flowers. It's springtime!... Read More
"Who is that hot babe in the picture?" isn't the... Read More
Are you in denial about the lifelessness of your resume?... Read More
WARNING: This article is likely to make you mad.In fact,... Read More
CIO Magazine ran an article entitled, "Ten Mistakes CIO's Too... Read More
Many people do not bother to look at their own... Read More
When it comes to modern career development, one thing we... Read More
Is your inner brat taking over your job? Everyone has... Read More
Deciding on a resume format is the first major decision... Read More
Being a student, a person needs to look for summer... Read More
Retirement might be the answer when you ask yourself "why... Read More
Dealing with tough questions and objections is an essential part... Read More
There is one little practice that is vital to generating... Read More
In her book "Are You A Corporate Refugee", Ruth Luban... Read More
Q. "I wasn't happy with my last performance review. Should... Read More
If you are concerned that your company might be planning... Read More
This article relates to the Career Opportunities competency and explores... Read More
As you know too well ~ many jobs have been... Read More
Last article I discussed why a telecommuter would benefit from... Read More
If you are thinking about a career in culinary arts... Read More
Is your résumé getting lost in a flood of résumés?... Read More
It's hard to imagine why anyone would pick up a... Read More
The phrase "reinventing yourself" seems to be popping up all... Read More
Use these interview tips for job hunting success!It's a tough... Read More
Two weeks ago, I received a newsy email from a... Read More
Dubai in the United Arab Emirates is one of the... Read More
I get asked these questions over and over: "Should I... Read More
My first job was secretary to Moses. Having to transcribe... Read More
Many professionals and managers are so involved in day-to-day crises... Read More
If you're looking for that promotion or pay rise then... Read More
Good News for Employers wishing to change the terms of... Read More
"They say my résumé should be only one page long.... Read More
About four years ago a friend told me one night... Read More
There is one little practice that is vital to generating... Read More
Careers, Jobs & Employment |