TotalStart

Lifestyle Business & Passive Income Talk With A Side Of Travel And Gadgets

Date archives January 2014

Passive Income

Using Alibaba To Find A Product To Sell

 

Find A Product To Sell

Picking a good product to sell right from the start will make your chances of being successful quite a bit higher.   For this business I want to try and sell a product that will be sourced from overseas.    I also want to get something I’m somewhat interested in & a product I’d actually use.   The reason for that is because since you’d be a buyer of the product it’ll help you market it better.   Also if you’re interested in the product it’ll help you stay more excited and be more open to telling people about it.   If you’re a 25 year old guy, don’t try to start selling quilting kits, pick someone that you and your friends would use.   Something you won’t be embarrassed to post all over your Facebook page and tell all your friends and family about it.

1.  Make Sure There Is Demand For The Product
You’d think this one is a no-brainer but you’d be surprised how many people pick a product or service that doesn’t have any demand for it.   I’m not saying it’s not possible to build up a business around something new and creative; but if you want the past of least resistance pick something that people are already out there looking for.

The easiest way to do this, is to use a Google AdWords account (if you don’t have one it’s free to sign up for one).  Once you’re logged in, go to where it says “Tools & Analysis” from there pick the “Keyword Planner Tool”.   Then pick the option that says ” Search For New Keyword And Ad Group Ideas”.

From there just start putting in ideas of products that you’re interested in possibly selling.  On the results page click the tab that says “Keyword Ideas”

and look at the “Avg. Monthly Searches”.  This will tell you approximately how many people search Google for that specific keyword each month.    Try to pick something that gets 5,000 – 10,000 searches (including variations of the product).

So for example, I’ve been on this GoPro kick shooting video all over the place.  Because I’m all over the place I’d like a good case for it when traveling and just around town. if you search for “GoPro Case” you’ll see it gets 5,400  searches a month, not too bad.  So start looking at variations:
“go pro case” – 1,300 searches
“go pro carry case” – 90 searches
“go pro carrying case” – 50 searches

All together this is a pretty decent little niche.  You’re looking at about 7,000 people a month looking online for GoPro Casses.

2.  See How Much Profit Margin There Is For Your Product
Alibaba is a great place to find suppliers for products to sell.   I’ll talk more about it later on, there are definitely some issues you’ll have to deal with between language barriers, shipping, etc.  However hands down it’s the best place I’ve found to connect directly to manufacturers and get products made.

So head over to Alibaba and search for “Go Pro Cases”, you’ll see all the manufacturers showing the various cases they make.   Now load up Amazon & Ebay and look around on both of those sites to get an idea of how much of a profit margin there is.   I see a case on Alibaba that can be bought for around $5 and then one pr

etty similar selling on Amazon for $29.90.    Keep in mind that $5 probably doesn’t include shipping and possibly other things but overall that’s a solid profit margin most likely.    That’s a pretty good sign.

3.  Pick Something Easy To Ship & Not Fragile
I personally like products that are easy to ship and not fragile at all.  This way you cut down on packaging materials as well as dealing with returns of broken items or any shipping related issues.  Ideally you want something that’s pretty small and lightweight.   Also if your item is cheap enough to ship you can always tout “Free Shipping” all over your site which is a nice little frosting on the cake when selling to customers.


4.  Check For Any Legal Issues Or Patents

Definitely spend a little bit of time digging around and make sure you’re not infringing on any patents of products or goods.    For example the GoPro case  you’ll need to double check your wording when selling it.   Spending a few bucks up front talking to a lawyer or consultant if there’s something questionable will save you a huge hassle later on down the road.

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Spend a lot of time on this step, make sure you find a product that you have a good gut feeling with.   I’ve got my product picked out, next post we’re heading over to Alibaba and going to start finding manufacturers and getting samples sent over.

Passive Income

Building A Lifestyle Business – Let The Games Begin!

Starting LIneWith 2014 officially under way it seems like the perfect time to fire up this idea I’ve been kicking around for awhile now.  Basically I’m going to spend an hour at night (whenever possible) working on building a small business and documenting it every step of the way.   Over the years I’ve had so many people ask questions about how to build a business online I figured this would be a great way to show in detail how anyone can go about building up a small business on your own.

My goal is to get to a business that generates $2,500 a month profit within 6 months,  and ideally I’ll be trying to make it as much of  lifestyle business / passive income stream as possible.   Lifestyle businesses are basically creating something that generates enough income for you to live on; while freeing you up from the confines of a normal 9-5 job.  The passive income side means that the business ulimately runs on it’s own as much as possible creating a passive flow of income into your bank account.  What most people say is that you should figure out how much money ideally you’d need to live on comfortably and make that your goal.   I figured $2,500/mo is a pretty solid starting income especially if it’s mostly passive, so that’s what I’m going to aim for.  Of course as with most any business the sky is the limit and really comes down to how much effort you put in building it up.

The reality is the internet is a giant gamechanger when it comes to starting your own business.   With very little capital and some hard work on your end there is no reason that everyone out there can figure out how to generate some or all of their income online.   The beauty of it is there’s little to no risk; the only thing you really lose if it doesn’t work is your time.  Even if your first idea fails, that time you’ve spent on it will make the next thing you try even easier and eventually you’ll find something that clicks and works out.  Every business owner out there has failed, probably countless times, before figuring out what works for them.

This Diary will give you a break down of what I’ve found works for me.  It’ll give you a good guide of how to get things going as quick as possible which is the name of the game.  You don’t want to spend alot of time messing around with an idea that wont pan out.  The key is to cut your losses early on if the idea is a dud and move onto the next thing.

So follow along, definitely leave any input along the way.  I’ll try to answer as many questions as possible to help you getting on the right path of getting your own lifestyle business off the ground!