Product vs service statistics

[EricBraco]

Does anyone know the statistics between "successful" businesses that offer services vs products, let's say within the last year or so? Let's keep it within that timeframe because timing and markets do change quickly nowadays. I know there probably isn't a accurate statistic for this but if anyone has a educated guess that would definitely be appreciated.

 

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[AgainstAllOdds]

I don't have statistics, but I'm assuming you're asking because you want to choose between a product vs service based business.

If that's the case, then you shouldn't search for these statistics, but consider which business you'd prefer to run. Your success rate is based on you as an individual and not the market average.

For example, I hate doing customer service and am horrible at it. I'm also horrible at working on someone else's schedule. That's why I'll stay away from service based businesses and stick to product as much as I can.

For others, product is bad because you need capital to start, a strong understanding of market needs, and it's a lot harder to pivot. To each his own.

 

[banjoa]

I will say I prefer physical product based businesses too.

It's much easier to obey the commandment of time in CENTS with a product based business.

Does anyone know the statistics between "successful" businesses that offer services vs products, let's say within the last year or so? Let's keep it within that timeframe because timing and markets do change quickly nowadays. I know there probably isn't a accurate statistic for this but if anyone has a educated guess that would definitely be appreciated.[/QUOT

 

[EricBraco]

I don't have statistics, but I'm assuming you're asking because you want to choose between a product vs service based business.

If that's the case, then you shouldn't search for these statistics, but consider which business you'd prefer to run. Your success rate is based on you as an individual and not the market average.

For example, I hate doing customer service and am horrible at it. I'm also horrible at working on someone else's schedule. That's why I'll stay away from service based businesses and stick to product as much as I can.

For others, product is bad because you need capital to start, a strong understanding of market needs, and it's a lot harder to pivot. To each his own.

That's a great answer! Yes that's why I'm asking, I'm looking to choose between a service and product based business. I have ideas in both fields and wondering which one I want to start out first that would statistically have a better chance of success. But I didn't consider which one I would prefer to run as a individual myself. Thank you for making me aware of that. This is the answers I look forward to getting when I joined this forum, thanks again.

I'm still curious for argument sake what the percentage would be. Example, let's take it to the extreme, what if product based business success is only 10% while service based business is 80% successful- this is a guess of course and it could very well be vise versa.

 

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[AgainstAllOdds]

My theory is that it's going to be close to the same.

Service and product go hand in hand. You need both in our economy, and you can't have one without the other.

Look at any value chain. Here's Porter's:

Delivering value is a mixture of product and services, and because of that, each one in a free market economy will be needed. How much each of those services/products is worth depends on the market/industry.

Here's some stats to get you started: Forbes Global 2000 - Wikipedia

Top companies are finance related, then product, then telecom, then a continuous mix of product/service.

Instead of looking at whether to start a product or service based business, perhaps you should study industries that have the largest market voids. That's a much better way of approaching starting a business, though that's also a dumb way to do it.

Instead, you should:

1. Write down all the top ideas you have for starting a business.
2. Choose your top 5.
3. Start testing with number one and keep going until you have one that clicks with the market.
4. Scale.

It's not about product vs service. It's about your ability to execute as an entrepreneur. You as an individual are naturally better at executing on one of the two. Choose the one that's a better fit for you. But you won't know which one is which until you enter a market and get feedback from operating.

Bet on your best idea. Get started. Then figure out later what kind of business you'd prefer to run.

The more time you spend exploring an answer to this question (which has very little value to you or anyone else), the less time you spend getting rich. Just get started.

 

[EricBraco]

My theory is that it's going to be close to the same.

Service and product go hand in hand. You need both in our economy, and you can't have one without the other.

Look at any value chain. Here's Porter's:

Delivering value is a mixture of product and services, and because of that, each one in a free market economy will be needed. How much each of those services/products is worth depends on the market/industry.

Here's some stats to get you started: Forbes Global 2000 - Wikipedia

Top companies are finance related, then product, then telecom, then a continuous mix of product/service.

Instead of looking at whether to start a product or service based business, perhaps you should study industries that have the largest market voids. That's a much better way of approaching starting a business, though that's also a dumb way to do it.

Instead, you should:

1. Write down all the top ideas you have for starting a business.
2. Choose your top 5.
3. Start testing with number one and keep going until you have one that clicks with the market.
4. Scale.

It's not about product vs service. It's about your ability to execute as an entrepreneur. You as an individual are naturally better at executing on one of the two. Choose the one that's a better fit for you. But you won't know which one is which until you enter a market and get feedback from operating.

Bet on your best idea. Get started. Then figure out later what kind of business you'd prefer to run.

The more time you spend exploring an answer to this question (which has very little value to you or anyone else), the less time you spend getting rich. Just get started.

Yeah the hardest part sounds like is getting started, that's the roadblock I'm at right now. Thank you for your knowledgeable feedback, very much appreciated.

 

[lowtek]

Service is easier to start, so start there. Pick something you know, that is valuable, and get people to pay you to do it.

If you hate it, you can change later.

Just start moving, as @Andy Black says

 

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[EricBraco]

I will say I prefer physical product based businesses too.

It's much easier to obey the commandment of time in CENTS with a product based business.

Thanks!

 

[ALC]

Great thread, i was searching for this, and i have to admit it's difficult to find something to start. (Service or Product)