My answer to this frequently asked question:
First of all, there are many ways to get started and if you’ve never sold online before I recommend you start with retail arbitrage or sourcing small from wholesale sources such as Alibaba ready to ship. This allows you to very quickly flip $100 at a time and turn it into more money. You can make small mistakes instead of huge ones.
I have even sewn and made my own products and sent them in as test products before white labeling or private labeling them. I once sewed 20 automobile phone holders and sent them in. Cost me about $2 to make and I sold them for $14. I learned a lot and got great customer feedback.
Stop worrying about what business model to choose and just start with one product you can flip and learn the process of selling online.
Then you can take those lessons learned and make more informed decisions.
Secondly, most people think they are doing private label but they are actually doing white label. When you pick a popular product and you put your own label on it, this is white label, not private label. Private label requires you to own a differentiation of the product that you can protect. So when you sell a true private label product there are not 100 other copy cats on the page right next to you. You don’t have to deal with highjackers because your product is not easy for others to source.
Anyway, I could go on and on about that so I’m just going to leave it alone. I would like to give you some advice.
Imagine you were going to open a store in your city or a popular city you love. You are so excited to get up every morning and go to your store and greet your customers and stock the shelves. What is your store? Why do people visit your store instead of the big box retailer next door? Who is your customer? What does the sign out front say that drives people inside to look around?
The answer to this question is a good start to your journey and your business plan. Now you can study this niche even more and find a test product like I talked about above to learn from. Then you can expand from there.
How much money you need is really irrelevant as you can plan for all of that. I raised $80k to invent my product and pay for my molds. But I did retail arbitrage, wholesale, white label and private label in the meantime to learn the process. I sold all sorts of things. You can do this. Its just business. If you treat it like one and sell to your customer instead of trying to copy someone else’s formula you will succeed. All the people that launch these copy cat products and wonder why they spend all their time trying to rank are selling to someone else’s customer. There is a difference.
I teach these concepts and more in my mastermind group so you can stop worrying about all the formulas and start planning YOUR business and YOUR future. Join us for only $49 at https://amazingathome.com/mastermind