If you have enough money to invest in inventory for resale in addition to the other start up costs associated with a new business, a merchandising business may be right for you
Many people decide to start a merchandising business. Most of them begin by researching the possibility of renting commercial space. Some people believe they need foot traffic to start that type of business. However, others will forget about research and invest in a franchise. Both possibilities offer an individual an opportunity to have above average earnings but would have him entering the business world in debt unless he had enormous savings. Most new merchandising businesses fail. Primary reasons for those merchandising business failures include;
- insufficient funds to properly start one’s own business or buy a franchise, This could lead to borrowing and unnecessary debt.
- a failure to understand the customer service requirements
- an inability to prepare and properly update a business plan
- a failure to consider what types of the products the state and federal governments buy. Thus overlooking some of the best customers for long range growth.
- failure to adapt to changes in technology and remain current with best practices for starting a merchandising business.
Solutions to these problems must be addressed, and may be found by finding;
a source of funding, that doesn’t require repayment, and, researching customer service requirements for merchandising businesses.
learning how to prepare a business plan.
- Getting into small business programs,, if you have an offering the government buys. If so then building you business to a point where you qualify to become 8(a) certified or apply for a HUB Zone Certification.
keeping up with industry best practices for merchandising businesses.
An aggressive approach to addressing all of these issues could be time-consuming and, require a lot of research. . Even with all of that completed the person may still face a 90% possibility of new business failure.
Having addressed the basic start-up issues, look at the biggest roadblock to starting a merchandising business to decide if it’s for you.
Starting a merchandising business requires you invest in inventory for resale. Without that inventory you have nothing. But, in addition you must have a means of tracking your inventory and have a system in place to replace what’s been sold. An alternative could be drop shipping from a website or blog. That would only require that you have pictures of the inventory you have available for sale. The drop shipper would handle fulfillment of orders made online. But, it takes a while to get a website known and recognized online. The best alternative for a new startup seeking to become involved in merchandising might be to have samples of your inventory you could show at house parties. People who made purchases or sought to do later, could be directed to your website or blog. They could easily become your first online customers. They could order replacements for consumable items or order items they failed to get from you during your first meeting.
You would have avoided the cost of a brick and mortar store, and if you recruited others who wanted to hold house parties for you you may even be able to start your own multilevel marketing business. Starting a merchandising business the wrong way can put starting that type of business out of the reach of many working people. But, with the proper research even a person with limited resources can make it happen.
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