I recently received a nice email from a visitor who read some of my blog posts and postings in my e-store regarding my thoughts about operating a very small business. He thanked me for opening his eyes about retail sales, especially marketing on the Internet.
I am retired now from my real income source. In my last position I worked for a very large international corporation for over 17 years. During that period, I created a very small personal retail business as a sideline. It was big enough I had to collect sales tax, report income to the feds, and operate in every way as a genuine business.
I could not let it interfere with my real (money making) profession, but with a lifelong spirit of an entrepreneur, I needed to keep that business spark alive and created my plan for a mail order retail business. I based it on a profitable hobby.
I believe profitable hobbies becomes a far more numerous business practice than I first assumed. One reason is the taxation rules. All retail sales are subject to local, state and federal tax laws. Also income tax laws. A hobby based, break even, buy/sell type retail sales business has to follow and play by the same reporting rules as any other business for profit.
But I and anyone else can create a market presence that provides no indication of actual business size or capabilities. Especially with web marketing where no bricks and mortar storefront is required. No complaint here. Just saying that any clever person can create any business appearance desired from the kitchen table or garage. It’s how the game is played.
So my plan was to become a dealer for ready made products I can buy wholesale, and sell on the Internet for a profit. Easy to do part time when I have a real income job. Low overhead, no manufacturing, just buy and sell.
This works well with retailers that have multiple products lines and a diverse customer base. A full service hobby shop fits that criteria. I.E. Hobby Lobby.
That plan doesn’t work well for the single or minimum product line entrepreneur, especially using the internet for marketing. I have to compete on price and service with every other retailer selling the same product. The key phrase here is “the same product”. Any product marketing I do on my own, benefits everyone else selling the same product. The manufacturer needs to carry or co-op the product marketing burden and NOT COMPETE with its dealer network. But, like me, there will always be someone who wants to be a manufacturer’s representative, whatever the playing rules. It only works well if the manufacturer strongly supports his dealer network.
I have operated with my weak business plan for over a decade because I don’t really need to survive on the net income. My plan was sufficient for it to feed my personal hobby needs and keep in practice with the real business experience it provided. My customers also benefited from very competitive pricing.
The key to micro business (sole proprietor type business) success is to produce your own unique product offering or service.
That statement deserved its own bold paragraph, it is that important. Take a look at any episode of the popular TV program, “Shark Tank”. There has never been a person seeking funding for a buy/sell wholesale/retail business operation. For every visitor looking for funding, it was a unique product or service that drives the business plan. It is that key business ingredient every successful “shark” is thinking about.
Now that I have retired from my full time occupation, I have the time to develop (and make) unique products. My business plan has changed from buy/sell to small scale making or manufacturing. I see far more profit and enjoyment from creating what I sell. I have no “me too” competition. It’s an artistic business, perfect for a single person operation and I promote myself as the artist/creator as much as I do the actual product.
No grandiose scheme for empire building. I do see there are unlimited possibilities for growth if desired. However, that’s not in my current plans at age 70. My goal is to stay active with a purpose for every day and feed my creative need to do what I love for those who love what I do…