Every great venture begins with a blueprint. A vision for the future. So, what’s your business story going to be? Are you the artisan, crafting unique treasures with your own two hands? A tech wizard, bringing innovative gadgets to the world? Or perhaps a curator of taste, sourcing the finest goods from across the globe? Maybe you’re a master of your craft, offering expertise in the form of consulting or coaching. Whatever path you choose, your plan is the compass that will guide you through uncharted waters, helping you navigate the thrilling journey of entrepreneurship. It all starts with that first spark of an idea, the “what” that will set your business apart in a crowded marketplace.
Producing a Product
The best option is always to be in 100% control of the business from the raw materials, production, finished product to the market place. Evaluate personal needs of people you know. What would make their lives easier. For example way back when peoples clothes were falling off the clothes line onto the ground. I am sure prior to the clothes pin there were solutions people were using. But it took one guy with the desire to improve and promote his grandmas raw idea as a product.
While the exact origin of the clothespin is unclear, the modern clothespin, with two prongs connected by a spring, was patented in 1853 by David M. Smith of Springfield, Vermont. However, earlier versions of clothespins existed before Smith’s invention. For example, in the early 19th century, Jérémie Victor Opdebec patented a one-piece wooden clothespin without a spring. These earlier versions were not as reliable as the one David M. Smith brought to market.
While the exact circumstances surrounding David M. Smith’s invention of the clothespin are not well-documented, there are some clues and context that give us insight into the development and patenting of his design.
- A Need for Improvement: Prior to Smith’s invention, people used various methods to secure clothes to lines, including straight pegs, forked sticks, and even thorns. These were often inefficient and unreliable, highlighting a need for a better solution.
- A Skilled Inventor: Smith was known for his ingenuity and held patents for other inventions, including a peg-splitting machine and sewing machines. This demonstrates his propensity for finding solutions to everyday problems and capitalizing on their potential.
- The Industrial Revolution: The mid-19th century was a time of rapid technological advancements and burgeoning industrialization. This fostered an environment of innovation and a growing market for consumer goods, creating an opportunity for Smith’s invention.
- Patenting the Idea: Smith recognized the commercial potential of his clothespin design and filed for a patent in 1853. This demonstrates his understanding of the importance of intellectual property and his desire to protect and profit from his invention.
- Bringing it to Market: The patent provided Smith with exclusive rights to manufacture and sell his clothespin, allowing him to bring it to market and capitalize on its popularity. The success of his invention led to numerous other inventors seeking to improve upon his design, further solidifying the clothespin as a household staple.
While the exact “aha!” moment for Smith remains a mystery, it’s clear that his invention addressed a practical need and emerged at a time when innovation and consumerism were on the rise. His decision to patent and market his clothespin showcases his entrepreneurial spirit and his understanding of the economic potential of his invention.
The lesson here isn’t about solving grand challenges like the energy crisis, but recognizing that small innovations can have a huge impact on our daily lives. You don’t always need to be the first to dream up an idea. Sometimes, progress comes from observing how people already do things, then improving upon that idea and successfully bringing that improved product to market. It’s about finding the untapped potential in the everyday, and turning that into something truly useful and valuable.
Reseller or Affiliate Business
If you do not want to bother with producing a product yourslef then you should consider reselling. There are a lot of databases listed on the internet with wholesalers and dropshippers. Look for one who has a unique product. It is also good if they have some rules about resellers you might be competing with. For example iMAP which sets a floor to the advertised prices. iMAP establishes the lowest price at which a retailer can advertise a product online. This applies to websites, online marketplaces, email marketing, social media ads, and other digital channels.
Partner Business
Partnering with a local artisan who is passionate about their craft but hasn’t yet explored broader markets presents a unique opportunity. Many skilled artisans focus solely on creation, not realizing the potential for scaling their products. By forming a partnership, you can combine your business acumen with their creativity to bring a high-quality, unique product to a wider audience. This collaborative approach not only benefits both parties but also adds a compelling story to your brand, enhancing its appeal to consumers who value craftsmanship and originality.
What Not To Do
It is easy to find wholesale suppliers and dropshippers, but before rushing to choose one, research how saturated the market is with their products. While many wholesalers offer great products and reliable shipping, some already have numerous resellers. To assess the competition, search for the item numbers listed on the wholesaler’s site and see how many other sellers are offering the same products. This will give you a clearer picture of your potential market share and whether you should explore other suppliers.
Key points to consider when evaluating your online business idea:
- Market Demand:
- Does your product or service address a real problem that a significant number of potential customers face?
- Is the problem widespread enough to create a sustainable market?
- Have you researched and identified your target audience?
- Value Proposition:
- Does your product or service offer a unique or superior solution compared to existing alternatives?
- Is your solution cost-effective and appealing to potential customers?
- What sets your offering apart from competitors in the market?
- Willingness to Pay:
- Are people willing to pay for your product or service?
- Have you conducted market research to gauge price sensitivity?
- What pricing strategy will you adopt to maximize profitability?
- Customer Acquisition Costs:
- How much will it cost to reach and acquire your target customers?
- What marketing and advertising channels will you utilize?
- Have you budgeted for customer acquisition and retention?
By thoroughly addressing these questions, you can gain valuable insights into the feasibility and potential success of your online business idea. Remember, even the most brilliant idea can fail if there’s no market demand or if customers aren’t willing to pay for your solution.
Additionally, consider conducting market research, competitor analysis, and testing your product or service with a small group of potential customers to gather feedback and validate your assumptions. This will help you refine your business model and increase your chances of success in the competitive online marketplace.