SmallBizResource Blog -- Business Know-How

9 Ways To Decide What You Should Sell

Posted by Janet Attard, Courtesy of Business Know-How Thursday, Jun 18, 2009, 09:23 AM ET

Are you thinking about launching a new business? Do you have some new product or service you want to sell? Are you pretty sure the product or service will be a big hit if you can get enough money to get started, or get the time and resources together to add it to your existing offerings?

Whether you're starting a new business or expanding your existing business, be sure you stay focused on the most important aspect of any product or service: what real, living, breathing customers want or need badly enough to buy.

Remember that what your intended audience will buy may not be what you want to sell. If your great idea proves to be a dud, then you're out the money you spent to acquire or produce it, package it, and advertise it.

So how do you get it right? There's no crystal ball to predict which products or services will thrive and which will bomb (though new industry research from IBISWorld that pinpoints nine high-growth sectors for entrepreneurs provides some interesting insight). Still, there are ways to hedge your bets and improve your chances for success. Here are nine characteristics your products and services need to make you a profit.

1. It must be something people want or need.

2. It must be good quality and effective.

3. It must be something you can buy or produce at low cost and sell for at least two to five times your cost.

4. It must have a market you can afford to reach.

5. You must be able to describe a typical customer in that market in detail. (For example, their age, gender, and annual income; whether they buy the product/service for themselves or someone else; why they want or need the product/service; how often they buy this type of product/service; and where they get this product or service now.)

6. It should be something that involves repeat sales to the same customer or that allows you to up-sell and cross-sell additional products.

7. You must have an affordable and reliable way to deliver or distribute your product to customers.

8. There should be related, and possibly more expensive products you can sell to satisfied customers after the first sale.

9. It should be something you like and believe is worth the price you put on the product or service.

Business Know-How