What you know and what you’re good at form a good basis in how to start your own business. Therefore your strengths or what you enjoy doing will determine if you’re business will provide a service or sell a product.
And when it comes to how to start your own business there are also a number of factors that will determine whether you’ll sell a product or service. Here are a few of those things to consider when making that decision.
When it comes to funding your business expenses
Selling a service rather than a product does not require large start-up costs. It’s a business you can start on a shoestring budget. As you can grow your business without financing until it becomes self-sustaining. Whereas a business centred on a product or products in most instances requires outside funding. And funding can come in the form of venture capital, angel investors, and startup or small business loans.
And in such instances most investors want to see that you have money on the line as well. This ensures that you’ll be especially motivated to run the business well so you won’t lose the funds you’ve invested. Many people also charge business expenses to a credit card. But if you must use a credit card, it’s best to open an account specifically for your business.
A service business can be set up from the privacy of your own home, especially if you know you’ll need a basic home office set up and usually make visits to clients and customers. While a product based business, as most times you’ll need a physical location to sell your product or products.
Renting space is a low cost and low risk approach. You can sell at a farmers’ markets, craft fairs, antique stores, or festivals. It’s also a great way to get feedback from real people regarding your product and what you could change or add to make it more appealing, which also provides the marketing for your product.