12 STEP GUIDE: HOW TO START & BUILD A PHYSICAL PRODUCT BASED BUSINESS ONLINE
- Christine Sacramone
- Mar 27, 2023
- 17 min read
Updated: Jan 22
Are You Ready To Learn How To Start & Build A Physical Product Based Business Online From Scratch?
Listen, you don’t have to grow your product business alone and it certainly doesn’t happen overnight.
If you’re reading this, it’s likely you were brave enough to embark on an adventure of becoming a physical product based business owner.
It is a truly courageous commitment on your behalf to create products and put them out in the world, let alone try to turn them into a thriving business!
Whether you are creating handmade goods, home décor, stationery, jewelry, fashion accessories, pet toys, or more… we are all up against the same challenges.
We all know the creative side of our businesses are so much more fun than all the technical and marketing tasks, but as business owners we have to make all aspects of our creative business, not only work, but thrive!
It’s a known fact that developing a physical product based business is a big investment in your time as well as your financial commitment. So, finding ways to reduce expenses and increase profits is music to your ears, right?
Everything from pricing your products to vendor and material sourcing to calculating which products will be most profitable makes it evident that the business side of your creative product based business just cannot be ignored.
So many creative entrepreneurs express that it’s tough at times, as a creative person building a product based business, to learn so much information that is unfamiliar & does not align with their creative mindset.
Let’s face it, growing a physical product based business has it’s set of challenges and it can be lonely and frustrating navigating it all alone.
"Creative people, like us, want to be around other product creators, sharing our ideas & challenges, and leaning on one another for guidance & inspiration."
>Quick Source.co< was built on that exact premise… Provide all the courageous, creative, business owners with the resources & answers they need to remain inspired, productive & thriving in physical product development & business growth.
Whether you’re launching a new product offering, considering a wholesale opportunity, or brainstorming a new product line, I want >Quick Source.co< to be the place to go for creative business advice & insight into what really matters when scaling & growing your business.
You can trust I have the experience & knowledge you are looking for. If you don’t know me by now, >pop over here<, see how my 3 decades of creative product development has built millions in sales for so many companies that I have had the pleasure of working with.
I am VERY familiar with all the challenges of building and growing a physical product based business and I am committed to providing you with as much free advice and guidance as possible through my blog, and >Free Resources<.
Consider me, >Christine at QuickSource.co<, as your year round creative business stimulator providing you insight and pro tips that will truly make a positive impact in your day to day tasks as well as the growth of your overall business.
How does that sound?
I’m excited to get to know you and your business.
So, let’s dive in and address some of your most pressing needs as a creative, product based, business entrepreneur.
I’m really happy you’re here and I can't wait to see what you do with this insider guide for creative entrepreneurs.
It's always good to set some expectations before you dive in because I want you to be able to read, absorb & apply these steps.
Step 1
Allow yourself time to read through all 12 steps without interruption.
Step 2
Recognize the stage you are at in your business right now and determine which steps you want to focus on to improve your product strategy.
Step 3
Don’t try to work on all of these at once! Pick the ones that you believe will be easiest for you to develop to start with and build your product strategy out of that.
A CREATIVE ENTREPRENEURS -12 STEP GUIDE– TO BUILD A PHYSICAL PRODUCT BASED BUSINESS
STEP 1: Get FOCUSED.
If you want to start & build an online product based business you have to become an expert at FOCUSING.
Are you focused on your specific product niche?
Going through these tips with your specific product idea in mind will be most beneficial & productive to get you started in the right direction.
When trying to decide on a product or a collection of physical products to sell, you don’t have to launch 18 different products to feel like a legitimate business. It gets expensive to expand too early and too quickly.
GET FOCUSED on 1-5 products in your niche and pour your time and energy into them with specific steps to verify if your products are a good business opportunity for you.
If you haven’t got a niche or a product idea in mind yet, I have a mini workshop that can help you to explore the right products for YOU…
Discover >THE CREATIVE IDEA GENERATOR< where you will receive a 4 Step, self guided workshop, teaching you the steps of IDEA MAPPING to take the confusion out of finding Physical Product Ideas, end frustration & create a killer business!
A 12 STEP BLOG GUIDED SESSION is included in the IDEA MAPPING workbook. It walks you through each step of this blog post with 7 idea mapping templates and examples to help you quickly & easily validate your physical product based business idea.
DON'T MISS THE SURPRISE BONUS with 7 exclusive templates that will bring your business to life.
STEP 2: Do Your RESEARCH.
You want to know how to start an online product business?
Become comfortable with researching your product categories and business opportunities.
Before you even jump into thinking about building a physical product based business, make sure you have RESEARCHED your desired product niche and have found your unique product design that stands out from the competition.
Doing your research is one of the most important things you can do, so here’s where I suggest you start:
Identify 5 small-medium brands in your product niche and study their behavior.
· What new products are they launching?
· What do they identify as their top sellers?
· What products are on clearance, possible slow sellers?
By researching products in your desired niche & taking detail notes on the trends you observe, you will gain a better understanding of promotional strategies, email marketing campaigns, and sponsored social media posts you may want to apply to your own business model.
By knowing what your competitors are doing, you begin to brainstorm and create a specific plan for your own products.
STEP 3: Determine Your Products PRICE VALUE.
Your research continues in determining PRICE VALUE. I suggest you research other products in your desired niche & make detailed notes on pricing.
What price range are other products selling for in your niche of interest?
Identify what QUALITIES impact their VALUE:
Material
Size
Quality
Brand
Special Features
Now, take a look at the physical products you want to offer, where would you like your product to be priced based on the RESEARCH you did in your niche?
It’s important to establish where you think YOUR product will actually sit in price?
The price value you determine is based on the qualities listed above that are put into your physical product and are the result of a set of calculations, research, and understanding of all costs involved.
There are four basic pricing strategies I use in physical product development:
Premium: A premium pricing strategy produces higher profit margins and creates a tougher barriers to entry for your competitors. This is Brand focused pricing and a great deal of effort must be put into building the Brand.
Tiered: Tiered pricing is a strategy defined by the price per unit within a specific quantity range. Ie. With tiered pricing, the first 4-6 units would cost, say, $10 each. The next 8-12 units would cost $8.50 each, and the next 16-24 units would cost $7 each. The is a typical wholesale selling strategy.
Value: Value-based pricing is a strategy of setting prices primarily based on a consumer's perceived value of your product. Value pricing is customer-focused pricing, meaning business owners base their pricing on how much the customer believes their product is worth.
Penetration: Penetration pricing is a marketing strategy used to attract customers to a new product by offering a lower price during its initial offering. The lower price helps a new product penetrate the market and attract customers away from competitors.
Your product size, material, construction, production, brand strategy, and selling platform will all influence the pricing strategy that is suitable for your business model.
Whether you are making your product by hand or working with a manufacturer, cost out ALL your materials carefully. Everything from the raw materials themselves to the final packaging & shipping adds up.
Quick Source Tip: Some products are super cheap to ship, like paper goods, but others - like candles or glassware - can be expensive. Know the cost of shipping and packaging BEFORE you set your final price, so that you can absorb some of it.
STEP 4: Avoid FINANCIAL Anxiety.
I urge you not to shy away from creating a FINANCIAL plan for your business.
Starting any kind of business can take a financial investment, especially when focused on physical products.
Quick Source Tip: You want to start your business with a healthy mindset around your finances. Closing your eyes and hoping it all works out is not a strategy at all and it will just lead to added pressure and anxiety that you can so easily avoid by following these tips today.
Commit yourself to a monthly plan to clear any credit card debt you may have. Starting your business with current debt is costing you money every day in interest and it’s taking from the investment you can be making into your products.
If you simply can’t clear all of your debt just yet, then I want you to pay very close attention to it. With a monthly plan you will begin to pay off your debt, but be very mindful not to continue to make unnecessary purchases that continue to build more debt.
You will avoid FINANCIAL anxiety if you know exactly how much you owe, so go check your statements, write it all down, make a budget plan to pay off your debt bit by bit monthly with an end date in mind.
Keep track of all business expenses accurately from the very start. You can hire a book keeper, but in the beginning it may be wise for you to gain this knowledge yourself so that you feel a lot more in control of your finances as you enter your first year as a business owner.
I suggest a platform like >Quickbooks< Online, or take a course on Book Keeping on >Udemy<.
STEP 5: Know Your “USP” and Never Lose Sight Of It!
Do you know the term “Unique Selling Point”?
A "Unique Selling Point" (USP), also called a unique selling proposition, is the essence of what makes your product or service better than competitors.
USP is a marketing term, used to describe the feature that makes a product, service, business or person different. It's all about showcasing exactly why someone should buy your products.
Your USP may include words such as the "best price value," "the highest quality," or "the first-ever," which indicates to your customers a differentiating point between you and your competitors products.
Let me give you an example. Let’s look at HelloFresh's USP.
HelloFresh is one step ahead of its competitors with a strong USP in place: America’s most popular meal kit. But, they are not only making their product stand out by being the most popular.
When you arrive on their homepage, right away they grab your attention with a couple of distinctive marketing messages that complement their initial USP:
Now offering the most recipe variety and meals starting at $7.49.
They are also the company with the most 5-start reviews in their niche.
HelloFresh offers no commitment, which makes it super easy to sign up.
A very impressive claim they make is, they test each recipe 45 times to ensure its simplicity and deliciousness for the best possible consumer experience.
>HelloFresh< is doing a great job with their marketing message. Matter of fact, each one of these points could be a USP in itself, which is amazing. Many organizations struggle to think of just one!
Giving your product a leading edge with your determined USP can easily set you apart from your competitors. This is a message that will carry through all of your marketing, possibly packaging and the overall development of your physical products.
When trying to determine your exact USP, I suggest you get to know you ideal customers and this will help you determine the right USP for your specific business.
With a clear understanding on what a USP is and why it’s so valuable, begin to identify your physical products “unique selling point” with these tips:
Describe your ideal customer.
Explain the problem you are solving for them.
List the most distinctive features & benefits your product offers.
Speak your consumers language by effectively communicating the solution your physical product offers them.
Here's a mini workshop that may help you navigate this process effectively:
Discover 5 Key Elements to >IDENTIFY YOUR
IDEAL CUSTOMER< so you can develop your Physical Product with a clear understanding of your customer's needs. Clearly identify your products FEATURES vs BENEFITS to determine the SOLUTION you are offering. This is THE KEY to identifying your USP.
STEP 6: Get DESIGNING.
Coming up with your physical product design is a fun and exciting step to building your business.
If you have followed the tips above, you already have:
· Determined your specific product niche and idea.
· Structured a plan based on your research.
· Identified your ideal customers needs and USP.
The >IDEA MAPPING Workshop< helps you get focused to come up with your physical product idea/niche, then the next step is to begin to design and develop the product concept into a 3D physical product sample or prototype.
This is the fun part, designing your very own products!
When DESIGNING a product, you are designing the WHOLE PRODUCT, meaning the physical product itself, as well as the packaging and/or displays. Every element is an integral part of your products success.
Plan for the time required to cover all the important steps of physical product design and development. You want to get it right from the start so that you keep moving forward with a plan to grow your physical product biz.
Consider covering these steps when getting started designing your physical product:
Brainstorm Product Ideas that excite you with IDEA MAPPING.
Do Your Research EVERY step of the way.
Define Your Product: material, size, format, packaging, etc.
Begin sketching out your ideas. You can do this by doodling or a create a style board collecting visual reference that inspires your product idea.
Determine how the prototype or sample will be made.
Compile all the information needed in a Specifications document or indicate “specs” on your product sketches.
Contact the manufacturer and review all specifications thoroughly before making a sample.
Discuss Sample Fees up front before you send your art to a manufacturer.
Once you receive a sample, test it for functionality, quality and design.
Provide feedback to the maker to make revisions as needed and be sure you discussed the # of revisions that are included in the agreed upon sample fee.
All of these steps are a part of the design process.
If you’re feeling stuck, I have >1:1 coaching programs< to help you get through the designing process successfully. Find which program will benefit your business the best.
STEP 7: Your Product MISSION & MATERIALS Can Address CONSUMER TRENDS.
What materials and textures are hot right now?
Or maybe the question to be asking is, what materials are receiving bad press, or considered harmful, and should you stay away from? A good example of this is plastic straws.
An important element of physical product design is knowing the lifestyle of your consumer. The materials you select for your product and/or packaging can make a significant statement.
You want to make a good statement or impression and your material choice can easily tie directly into your USP.
For example, consider a vegan shopping for a purse. It is likely they will not be interested in purchasing an animal hide leather fashion accessory. As a consumer they are very interested in buying from companies that are connected to a causes that relates to what lead them to live their lifestyle. Material selection is an important part of their buying decision. Ethically sourced raw materials that are sustainable and have a positive effect on the environment will be a product focus for them.
Let me give you another example. Let's take a look at Patagonia.
Patagonia is a lifestyle brand offering premium active wear for an impressive 47 years.
BUT, active wear is not what you see when you arrive on their website. Activism is at the forefront of their brand.
>Patagonia< offers an impressive array of articles raising awareness on current global issues and states, "We're in business to save our home planet." The quality of materials and the fact that everything is done in an environmentally-conscious way, are all factors that affect the premium price of the product, but they also are the reason why people purchase Patagonia jackets and other garments.
They aim to use their voice, their business and their community—to do something about the worlds climate crisis. They are a part of a movement for change.
This is an impressive Mission!
This is something you should explore when designing. How can your business mission be kind to the environment in the process of developing your product to address consumer trends?
Find out what the material trends are and make sure they're both available to you and sustainable for your business to grow. Is there a way for your product based business to make a positive impact or contribution to a cause?
Quick Source Tip: Make sure that your entire product from ingredients/parts/materials right through to packaging and shipping materials, are SUSTAINABLE and environmentally friendly. Right now it might be a consumer trend or choice, but down the line it could be a legal requirement.
STEP 8: Do More RESEARCH!
Hey - didn't we already address this?
You can NEVER research your physical product strategy too much.
At every stage of your physical product based business journey, check your product against your future competitors, trends happening in the marketplace, and see what's getting the most attention and what's not working.
An important part of your responsibility as a successful physical product business owner is to know how other product business owners are doing in your same product niche.
Quick Source Tip: It's often what your competitors ARE NOT DOING that may be most beneficial for you to recognize and find opportunities.
Are they promoting their products in a way that inspires you to develop or promote yours? Did they miss a marketing strategy that addresses your consumers needs?
There is inspiration all around us, so make it a priority to keep an eye out on your niche and who is selling in the same space as you.
You may discover new opportunities and sales channels that you didn’t know existed.
You can gain all of this knowledge by being an avid researcher in your product niche.
STEP 9: Know Where To Sell Your Physical Products
Way before you even make your 1st product, I want you to consider the Multiple Sales Channels available and suitable for the physical products you intend to sell.
Develop a Multiple Sales Channel strategy for your physical product business in the early stages and keep it updated as opportunities arise.
There are so many queries you can make to find new sales channels:
How many opportunities have you identified in your business to find places to sell your physical products?
Are you selling your products to brick and mortar stores wholesale?
Have you considered how to sell your products wholesale online, as well as direct to consumers virtually?
Where are your ideal customers hanging out & waiting to buy from you?
Where do you primarily want to sell your products?
There are a lot of virtual opportunities to sell online, and multiple sales channels is a BIG way to up-level your business and allow you to expand.
By diversifying your sales streams you are protecting your business from relying on a single source of sales, and gets your business positioned towards sustainability.
Quick Source Tip: Before you add a new sales channel to increase sales & visibility, ask yourself why. Consider if your customers are already shopping there.
This is your >FREEBIE Resource Guide< to get you thinking about where to sell your physical products, as well as to get you more comfortable rethinking your product category strategy.
Find out which top US & Global online marketplaces rule their product categories for you to sell your physical products.
STEP 10: Create A Plan To Attract Your DREAM CUSTOMERS Online.
If you have an online business, the thing you must master to grow your company right now is learning the art of attracting customers to your online business.
Quick Source Tip: This is one of the most profitable skills you can learn, because the person that know the steps required to get customers to come to their online store is the MOST VALUABLE person in that business.
What are you doing to acquire new customers?
Do you find it all so confusing and you’re unsure where to start?
I want you to learn how to turn total strangers into your dream customers.
>The Art Of Attracting Dream Customers Online< is a detailed guide that provides you with all the steps to the fastest ways to engage people, get them to know & like you and have them become loyal paying customers.
The GUIDE is for anyone who sells or makes physical products, including jewelry, stationery, home decor, beauty, fashion, bath & body, and so much more!
If you have an online business, the thing you MUST MASTER to grow your company right now is ...THE ART OF ATTRACTING CUSTOMERS TO YOUR ONLINE BIZ.
Here are a few steps you can implement today and see immediate results in your business:
You absolutely MUST be gathering EMAIL subscribers on your website. Add a pop up to appear within 5-10 seconds of a customers arrival on your website. Make an enticing offer that is unique to the POP UP. The pop up MUST NOT cover your screen, both on computer as well as mobile.
Once you grow a list of subscribers, it can be as few as 20 people starting out, I want you to create a group of EMAIL SEQUENCES you will send out to your email list weekly to engage with them. EMAIL MARKETING is the backbone of your business and when used with auto-responders it is hands down an ultra-fast growth strategy for your online business. You can learn more about this by searching on YouTube or Google for detailed "how to's": THE BEST EMAIL AUTO RESPONDER and creating emails that engage my customers.
Create a foundation for your products brand by WRITING A COMPELLING STORY. Believe it or not, copy writing can make or break your business. Without a compelling story behind your products, nobody will tune in. It’s the one skill that allows you to connect with your dream customers & gain their trust. I bet the ONE mistake you're making that's repelling your ideal customers is the lack of polishing your skill of copy writing and sharing stories about the products you sell.
Display SOCIAL PROOF on your website. A buying customer has a compelling story to share and it is important to the success of your business, but only if you're sharing it. Consumer testimonials are one of the top reasons why people will buy from you, so I encourage you to capture testimonials of people who have found great results from what you are offering.
STEP 11 : Start A BLOG on your physical product website.
Physical product business owners often overlook the opportunity of writing a blog post for their target, dream customers on the topics they are searching for.
A blog gives you the opportunity to tell your brand story & humanize your physical product based business.
You don’t need a bunch of products developed and ready to sell in order to start your blog. The blog can be where you start your business. If you know your business name already, buy your domain and get started blogging.
Quick Source Tip: Include a SUBSCRIBE BUTTON within your BLOG post to gain followers and grow your list. Use strong marketing/sales copy to influence the reader. For Example: What can you offer them & can you keep that promise?
Your blog building strategy should focus on content that relates directly to the physical products you intend to sell in the future. This evergreen content on your domain will begin to lay a foundations on your future search engine visibility and also start crafting your own industry credibility.
It can be a personal blog if you prefer, but keep your end goal in mind, and write posts that are related to your future business niche.
Quick Source Tip: Create blog posts on topics that your ideal customers are already searching for and will greatly appreciate you providing them more information on the topic... and now you gain them as followers.
STEP 12 : HAVE YOUR SYSTEMS IN PLACE “S.I.P”
Do you have SYSTEMS in place? If not, it's time for you to "S.I.P."!
Can your business run without you, if not now…will it be set up properly to do so in the near future?
Don’t accept organized chaos as your standard system.
Most entrepreneurs starting out DO IT ALL, and it should be a goal of yours to grow to where you can hire a team.
Start documenting your process and find ways to improve upon it.
By keeping your systems documented, at some point, you will be able to grow your business and hire an individual or team to assist you with:
Product Management & Development Tasks
Growing your business with New Packaging & Product Designs
Email & Social Media Marketing Strategies
Customer Service & Consumer Engagement
Product Pricing & Purchase Orders
Inventory Tracking & Product Delivery
Product Photography & Website Updates...and more!
If you start developing systems for each facet of your business from the beginning when IT'S JUST YOU, you will be ready to up-level your business very quickly when providing all of your documented systems as training for your new team members.
Systems help to streamline your business and allows your business to grow no matter how many people come on board to handle your business needs.
You’re ready to get started!
Jump into the STEPS that MOST relate to YOUR business, and once you take the time to actually execute the steps, you will see results!
It's time to show your products to the world!
Helpful Resources & Tools Related To This Topic:
All The RESOURCES a Creative Needs To Run A Physical Product Based Business:
There are many ways to work with Christine:
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