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Scaling a handmade item business

sotomo

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I have a product that I am currently designing, and I'm stuck when it comes to a long term business strategy. I'm sorry I can't publish what the exact idea is here, because frankly, it has a low barrier to entry.

Nevertheless, I think it's worthwhile and I'm very close to actually moving forward with this, intentionally avoiding selling it during this holiday season so that I have time to stock up for next year.

I was just wondering, if anyone else has ever faced a problem where they need to assemble an item themselves, and then were able to move past that stage? I can only work so fast by myself, maybe make $100-$200 in profit per hour max if I purchase enough equipment. I figure within a year or two there will be a lot of imitations out there, so I have to get in and out fast.

This post makes it obvious that I'm pretty confused, and it's harder because I can't say exactly what I'm doing. The product might sell for about $40 with $20 profit and I can make maybe 5-10 per hour. But I don't feel like it's a perpetual business as it will be very easy to copy. Has anyone else conquered this sort of dilemma?
 
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How many have you sold?
 

sotomo

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How many have you sold?
As I said I'm currently designing it, so I have not started selling it. I completely admit I'm a wantrepreneur. But I have a item I created right here in front of me, so I'm not imagining this... I am still refining the design and plan to make a large number of them for next year.
 

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I have made several kinds of widgets by hand for 10 years, but have had to transition away for several reasons. I'm outsourcing some of my production, but nothing with my proprietary techniques. Anyway, if you're making widgets by hand by yourself-- make sure there's a market before you invest too much time and too much money into materials. Make sure your health can take the physical work. You can only scale up by hiring workers or outsourcing production. But the first and most important thing is to make sure there's a market. And also, choose the right platform. I'd go with your own site over somewhere like Etsy, even though it's technically for handmade widgets.
 
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sotomo

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I have made several kinds of widgets by hand for 10 years, but have had to transition away for several reasons. I'm outsourcing some of my production, but nothing with my proprietary techniques. Anyway, if you're making widgets by hand by yourself-- make sure there's a market before you invest too much time and too much money into materials. Make sure your health can take the physical work. You can only scale up by hiring workers or outsourcing production. But the first and most important thing is to make sure there's a market. And also, choose the right platform. I'd go with your own site over somewhere like Etsy, even though it's technically for handmade widgets.

Thanks for the advice. It's a bummer to hear that you had to transition away from it. Transitioning away to another product is actually one of my planned options. Did these widgets at least provide enough revenue so that you were able to transition into something better??? I like programming and would like to think of some electronic add-on item but I can't think of any at the moment. But I could create a retail store reselling complimentary items.
 

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U sold 0 and worry about people ripping you off? And don't want to sell this Christmas? Lol. You need to rethink things over. Get marketplace approval first. I had a product I thought could make make a multi gazillionaire and was delusional enough to believe myself, months later thousands of people saw my product yet no one gave a shit about it, something to consider.... People will always jump at taking your product, don't be concerned with this at all, if you think you'll be the only person doing your niche you are mistaken. Don't waste your time. Get approval from the market first. If it gets approved scale it. There's a thread by soomeine here that hired people in nursing homes and scaled some knitting buisness, forget the name sorry ,might wanna lok for that
 

sotomo

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U sold 0 and worry about people ripping you off? And don't want to sell this Christmas? Lol. You need to rethink things over. Get marketplace approval first. I had a product I thought could make make a multi gazillionaire and was delusional enough to believe myself, months later thousands of people saw my product yet no one gave a shit about it, something to consider.... People will always jump at taking your product, don't be concerned with this at all, if you think you'll be the only person doing your niche you are mistaken. Don't waste your time. Get approval from the market first. If it gets approved scale it. There's a thread by soomeine here that hired people in nursing homes and scaled some knitting buisness, forget the name sorry ,might wanna lok for that
I figured experts would say I'm putting the cart before the horse, but I just feel the need to have confidence in my business plan. So it seems you are saying that I should hire people. And that I should not worry about competition destroying my market. Actually, I appreciate that advice. I know that you probably get frustrated by dreamers and by seeing people fail all the time. So I really thank you for your advice. I have confidence in my product, but I'd be happy if it only sold a few. I just want to be prepared if the demand is high.
 
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sparechange

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That's great, like nike says, #justdoit worry about scaling later. Sell now
 

sparechange

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Gl on your journey!
 

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I figured experts would say I'm putting the cart before the horse, but I just feel the need to have confidence in my business plan. So it seems you are saying that I should hire people. And that I should not worry about competition destroying my market. Actually, I appreciate that advice. I know that you probably get frustrated by dreamers and by seeing people fail all the time. So I really thank you for your advice. I have confidence in my product, but I'd be happy if it only sold a few. I just want to be prepared if the demand is high.

Sell a few first and be happy then. The rest of your thinking is a bunch of crap in your current situation. I mean what happens in a few years when the Ferrari you want is not available in red?
 
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ruzara5

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low barrier to entry.
This is somehow going towards a high barrier to entry? No. It maybe a time to grab at a market. Someone else mentioned sales. Have you got your first customer? If your looking at branding, patenting or trademarking that is another step. Maybe look at subcontracting out the production of the 'device'?
 

rollerskates

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Did these widgets at least provide enough revenue so that you were able to transition into something better???

Not really. I can't keep up with necessary production (like I said in another thread, I can't fast lane because I can't slow lane), and the part of the business I'm transitioning to outsourcing may or may not be successful. It's really a market and trend driven industry, and I am more an evergreen kind of person who hates trends, so part of my personality fights against the very nature of the industry I'm in.

But like I said, make sure there's a market before you invest too much of yourself.
 
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Lex DeVille

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Once you have confirmed sales, then worry about all the other stuff. Every business model has challenges. There's usually a way to overcome them. For instance, if you build a brand around your handmade items and offer a totally unique experience, you won't have competition. It won't matter if a million people knock you off. You and your brand can capture a part of the market that nobody else can take. Not only that, you can sell at higher prices and earn more per sale so you get the most bang for your buck.

You might be able to outsource, but maybe not. If you can't let a manufacturer help out, maybe it's a matter of hiring in-house workers. These are just ideas based on little info. Sales would be my first priority. Not inventory.

1. Will they buy this?
2. How do I create a barrier to entry?
3. How do I scale? (lots of sales at low price or fewer sales at a big price?)

That's my thought process in regards to what you're doing.
 

LateStarter

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Once you have a business... particularly one with a lower barrier to entry... you'll realize that you need to differentiate yourself from potential competitors. 90% of the time you can't change the barriers to entry, so you have to add more value in some way. Copycats will follow but you will need to work harder at adding more value and try to distance yourself from them.

As others have said. Test the market first. Seek to deeply understand your customers and use that 'KNAWledge' to create differentiators with your offer.
 
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Walter Hay

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What is competition? It's a bunch of people that you can take on and beat.

My first business that developed into a sizeable exporting business was not strictly hand made, but I produced everything in my own improvised factory.

I took on multi-national giants whose petty cash was enough to buy my business at it's zenith of success and huge profitably. I sold it to a major investment bank and their partner investor.

So how did I do it?
  • Better product
  • Better marketing
  • Better service. Example: Wearing suit and tie, I ran the gauntlet of a Union blockade with my European car's trunk full of product crucial to keep the customer's plant operating. What multi-national competitor would dare to do that?
This all constituted part of branding. You can work out how to make your product, and the service that you give when you sell it, something that will earn you the right to become a brand. Competitors may try but if you build a reputation they will not succeed.

Go get 'em.

Walter
 

Wolfman

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I have a product that I am currently designing, and I'm stuck when it comes to a long term business strategy. I'm sorry I can't publish what the exact idea is here, because frankly, it has a low barrier to entry.

Nevertheless, I think it's worthwhile and I'm very close to actually moving forward with this, intentionally avoiding selling it during this holiday season so that I have time to stock up for next year.

I was just wondering, if anyone else has ever faced a problem where they need to assemble an item themselves, and then were able to move past that stage? I can only work so fast by myself, maybe make $100-$200 in profit per hour max if I purchase enough equipment. I figure within a year or two there will be a lot of imitations out there, so I have to get in and out fast.

This post makes it obvious that I'm pretty confused, and it's harder because I can't say exactly what I'm doing. The product might sell for about $40 with $20 profit and I can make maybe 5-10 per hour. But I don't feel like it's a perpetual business as it will be very easy to copy. Has anyone else conquered this sort of dilemma?
Hi Soto, I'm in a similar dilemma so I'm going to try to follow you closely. i have an invention (provisional patent), low barrier entry, and I will be doing some of the work. I'm struggling w/ designing a business model, especially re marketing.
If anyone has any idea re how one would go about getting a plastic sleeve w/ my logo stamped into it, I'd appreciate the help. Picture hiking poles (it's not my invention but the physics is similar). There is a tightenable piece that you use to adjust the length of the pole. How could I have something like that designed w/ my logo on it?
 

Wolfman

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Sell two this weekend to non family / friends. Get to work.
Hi ZCP, I like your simple/practical advice. Why waste words?
If anyone has any idea re how one would go about getting a plastic sleeve w/ my logo stamped into it, I'd appreciate the help. Picture hiking poles (it's not my invention but the physics is similar). There is a tightenable piece that you use to adjust the length of the pole. How could I have something like that designed w/ my logo on it?
I'm still in the very early prototyping stage. I'm also going to do a full patent. The prototype doesn't have to be perfect but I want a clear and durable logo/label. If I don't start thinking in both directions I can get hung up down the road. And I don't have lots of money to create the plastic sleeve-type logo. How do I even know where to start looking?
Greg
 
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Wolfman

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Once you have confirmed sales, then worry about all the other stuff. Every business model has challenges. There's usually a way to overcome them. For instance, if you build a brand around your handmade items and offer a totally unique experience, you won't have competition. It won't matter if a million people knock you off. You and your brand can capture a part of the market that nobody else can take. Not only that, you can sell at higher prices and earn more per sale so you get the most bang for your buck.

You might be able to outsource, but maybe not. If you can't let a manufacturer help out, maybe it's a matter of hiring in-house workers. These are just ideas based on little info. Sales would be my first priority. Not inventory.

1. Will they buy this?
2. How do I create a barrier to entry?
3. How do I scale? (lots of sales at low price or fewer sales at a big price?)

That's my thought process in regards to what you're doing.
Hi Lex, Thanks for your words. I have the New World's Greatest Killer Mousetrap invention. (Not really) My invention is close enough to use that hypo. It's physical, low-tech, easy to enter the market but I don't know what the market is. So do I take my KillerMT to HomeDepot or to the local hardware store or put up some online marketing scheme (mousetrap stocking stuffers), or go to the professional pest control companies? This is not my invention but the issue is the same. Any thoughts?
 

LateStarter

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Hi Lex, Thanks for your words. I have the New World's Greatest Killer Mousetrap invention. (Not really) My invention is close enough to use that hypo. It's physical, low-tech, easy to enter the market but I don't know what the market is. So do I take my KillerMT to HomeDepot or to the local hardware store or put up some online marketing scheme (mousetrap stocking stuffers), or go to the professional pest control companies? This is not my invention but the issue is the same. Any thoughts?
I recommend that you build it, sort out low volume manufacturing, get some sales to prove the market exists, file a provisional patent.

Then keep selling as you start shopping it around. No one will look at you without sales (unless you have a proven past and the product sells itself). For now you have to prove your product will sell.

Sent from my ONEPLUS A3000 using Tapatalk
 

Wolfman

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I recommend that you build it, sort out low volume manufacturing, get some sales to prove the market exists, file a provisional patent.

Then keep selling as you start shopping it around. No one will look at you without sales (unless you have a proven past and the product sells itself). For now you have to prove your product will sell.

Sent from my ONEPLUS A3000 using Tapatalk
Hi Late, I like the idea of selling as I shop it around. That makes good common sense. So build it and they will come... Thanks, Greg
 
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ZCP

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Hi ZCP, I like your simple/practical advice. Why waste words?
If anyone has any idea re how one would go about getting a plastic sleeve w/ my logo stamped into it, I'd appreciate the help. Picture hiking poles (it's not my invention but the physics is similar). There is a tightenable piece that you use to adjust the length of the pole. How could I have something like that designed w/ my logo on it?
I'm still in the very early prototyping stage. I'm also going to do a full patent. The prototype doesn't have to be perfect but I want a clear and durable logo/label. If I don't start thinking in both directions I can get hung up down the road. And I don't have lots of money to create the plastic sleeve-type logo. How do I even know where to start looking?
Greg
Hit up your local screen printer.
 

Walter Hay

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Hi ZCP, I like your simple/practical advice. Why waste words?
If anyone has any idea re how one would go about getting a plastic sleeve w/ my logo stamped into it, I'd appreciate the help. Picture hiking poles (it's not my invention but the physics is similar). There is a tightenable piece that you use to adjust the length of the pole. How could I have something like that designed w/ my logo on it?
I'm still in the very early prototyping stage. I'm also going to do a full patent. The prototype doesn't have to be perfect but I want a clear and durable logo/label. If I don't start thinking in both directions I can get hung up down the road. And I don't have lots of money to create the plastic sleeve-type logo. How do I even know where to start looking?
Greg
@ZCP's screen printing idea is a good one, but could depend to some extent on the diameter of the pole. In other words , what surface area can be imprinted.

Printing on a curved surface can best be done with a pad printer. There are people decorating promotional products, even golf balls, with pad printers in most good size cities. There is a small set up cost because they need to make a kind o mold.

Some types of plastic won't hold a print for long, so print one piece at least and after the ink has cured, rub it with a moderately rough cloth for a long time to see if the print still looks good.

Walter
 

Xeon

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@sotomo when your products are ready, I suggest to sell on Etsy for market validation and then drive the customers to your site. I once sold on Etsy and got my first sale within 3 days.
 
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Wolfman

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@ZCP's screen printing idea is a good one, but could depend to some extent on the diameter of the pole. In other words , what surface area can be imprinted.

Printing on a curved surface can best be done with a pad printer. There are people decorating promotional products, even golf balls, with pad printers in most good size cities. There is a small set up cost because they need to make a kind o mold.

Some types of plastic won't hold a print for long, so print one piece at least and after the ink has cured, rub it with a moderately rough cloth for a long time to see if the print still looks good.

Walter
Hi Walter, How've you been? I went to Home Depot and just wandered around for an hour trying to figure out how to do my physical branding/labeling. It seems on circular stuff everyone uses either that plastic cellephane shrink stuff or decals. If I can get a truly waterproof, very durable, high-quality decal, that would do the trick. Do you know how to start the process of designing and constructing a prototype label. I haven't got a logo yet but I want something distinctive and descriptive but not flashy or bright at all (it's for an outdoors green-type product). I'm not bucks up so what is the best way to get help but not spend too much too soon? Thanks, Greg
 

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