Arts And Crafts Hand Crafts Home Based Business
Because a company/business can't sustain itself on product sells alone. You must follow some basic simple rules that will help a company/business sustain itself. The article below is for you if you are wanting to build your own handmade or handcraft business that will last for years to come. It does not cost $1,000s of your own dollars to keep a business going if you follow these simple rules.
Home Based Business Basic rule:
You must on average sell your products for 3 times the cost in order for your business to be self sustained. If I buy something for $1.00 then I must sell it for $3.00. This is NOT pure profit and it does NOT go in your pocket (most put it in their pocket and thus why they go out of business).
The 3 times rule is broken up as such: $1 goes back into purchasing inventory to replace what you sold. $1 goes back into the business for business expenses (hosting, printing, ink, advertising, and etc.) and the last $1 now becomes your profit.
Although you made $1 profit it is highly suggested that you also put that back into the business and not your pocket for at least 6 months. This will help your business grow 3 times faster and before you realize it that $1 profit from 1 item will easily become 10x higher after 6 months.
Now with that being said understand not everything has to follow the 3 times rules. In order for the market to bare certain items you may only be able to go 1 1/2 times or 2 times on some items. If your over-all products/items average 3 times then you are good.
Home Based Business 2nd Rule:
You can't gain profit and time both on an item you sell - you must choose one or the other. If you choose both which many do then your product becomes too expensive for the market. While this tule does not always pertain to MLM/DS because your product prices and % are controlled by the company, it does pertain to most businesses.
If I create or buy a product for resell then I must figure out what my cost was for that product. Now I must decide if I want paid for time invested or I want straight profit. By choosing just 1 then my price will stay reasonable within the marketplace and quantity of sells will be easier.
Home Based Business 3rd Rule:
Know your market, understand your market, research your market. Just because a product with a company pays 35% does not mean it is a good fit for you. Many times you may be able to purchase the product yourself directly from a manufacturer where you can make 60%+ in profits.
In this case you are bypassing the 'company' and actually starting your own business because you can make more money. Who cares about downlines, uplines, comp plans when you can actually make more money running your own business selling the same products.
Just because a product is 'popular' does not mean YOU can sell it. You must research and do proper marketing and advertising to sell your products.
There is a great deal more that goes into this rule but this is the bare basics.