If you believe in your product and are willing to work hard to promote it, starting a direct sales business can be a great way to turn your passion into a profit. While direct sales has relatively low start-up costs compared to other businesses, there are a few important things you need to consider besides your initial budget to become financially successful in the long run. From assessing ongoing costs to creating your work schedule, planning how your direct sales business will work on a daily basis can help you decide if starting it is the right decision for you.
1. Will Your Product Sell?
You might love the product you want to promote, but will other people feel the same way? Remember to always be honest about the product’s drawbacks. Looking at the pros and cons objectively will help you decide if this product is worth your time and money.
2. Can You Afford Ongoing Expenses?
Gasoline, phone, Internet, printing toner, business cards and graphic design services are just a few examples of bills you might need to keep up with on a monthly basis. If you’re joining an existing direct sales business, rather than starting your own, you might not have as many of these expenses. The key is to make a budget and plan for any spending accordingly.
3. Do You Have the Space?
If you’re like many newcomers to the direct sales industry, you’re probably planning to start your new business out of your home. To make sure that you’re ready for growth in the future, it’s important to start thinking about it now. You’ll probably need to have a certain amount of inventory on hand so that you can easily fulfill orders for your customers. If you don’t have a big enough home to store your inventory and supplies, you’ll probably want to consider looking at local storage facilities like Extra Space Storage so that you don’t crowd your home with merchandise.
4. Are You Outgoing?
Running a direct sales business involves approaching strangers with a marketing pitch, it’s not the best field for people who are shy or who prefer to be alone. Before you invest your money and your life into this business, make sure you can handle it. If you have a friend in the business, try going out on sales calls with him to see if you are comfortable with this type of career.
5. Will You Make Enough Money?
Figure out what your profit margin will be if everything goes as expected to decide if the return on your investment is high enough to cover your time and expenses. Make sure you have a back-up plan. Direct sales can vary greatly from person to person. You could be selling the same product as another person and make double or triple what they bring in, or you could flop. It’s best to plan for each scenario and have a strategy.
6. Are You Willing to Recruit Others?
Since every entrepreneur’s goal is to build a successful business, you need to have a plan for how you’re going to handle rapid expansion if it happens. In many direct sales industries, the more people you recruit, the more money you bring in and more successfully you become. Are you comfortable talking to customers and friends about joining your ranks?
After considering the above questions and deciding to move forward with your business, you’ll want to document it with a business plan. Separate it into financial information, marketing ideas and future goals. When things get hectic, being able to refer back to an organized plan will help you stay on track. With the right tools and proper planning, you’re sure to be successful with your sales endeavors.