Want to go retail but don't want to deal with the hassles of a storefront? Follow the paths forged by Wards and Sears by starting a mail-order company.
Mail order is one of the hottest industries right now. It's not new--in fact, it can be traced back more than a century. But it's in demand, by consumers and entrepreneurs alike. Why? Reasons abound, both personal and commercial.
In today's marketplace, most customers can easily access any number of retail stores, but they don't have the time. More and more Americans are part of a two-income household, a team stretched taut between work and child-raising, with scant time for leisure--much less shopping. These people want to spend their off-duty hours in more rewarding pursuits than traipsing through the mall. Single parents, stretched even further to be in several places at once, have reached the same anti-shopping conclusion. And Americans as a whole have shed the more-is-better consumerism of the 1980s in favor of meeting their profound desire for simple quality time at home with family
Instead of spending your precious free time at the mall, you can pore through the pages of mail order catalogs that offer just about everything you can imagine--with your feet up, a cup of coffee at hand, and the kids and spouse either "shopping" with you in similar comfort or somewhere else in the house happily going about their own affairs.
From A Business Perspective
So far, we've discussed mail order from the consumer's perspective. Now let's take a look at the industry from the businessperson's point of view. What do we see? An industry that's potentially lucrative for the savvy, hardworking entrepreneur and has the advantage of requiring relatively little in the way of start-up expenses, specialized skills or intensive apprenticeship--as opposed to, say, professions like brain surgery, high rise construction or even restaurant management.
In order to be successful in mail order, you'll need a generous measure of hard work; a concerted and constant study of the industry as a whole, as well as your particular niche; and the ability to roll with the punches.
Mail order offers the option of starting your business part-time. In fact, many direct marketers insist that moonlighting is the wisest way to go. John Schulte, chairman of the National Mail Order Association (NMOA), believes traditional and Internet-based mail order are the last frontiers for the little guy. "You can find ways to make things happen part-time from your kitchen table," says Schulte.
If you start out part-time, you can allow yourself on-the-job training without on-the-job financial anxieties. And if you don't want to sever the ties with your full-time employer until you know you can make it on your own, mail order is an ideal business for you.
What else makes mail order shine for the start-up entrepreneur? You don't need a lot of inventory. You can sell merchandise through a drop-ship arrangement, in which a third party such as a manufacturer or wholesaler sells you the merchandise but keeps it in his warehouse and delivers it to your customer for you after you've made the sale. You can also start out with one product or service and keep your inventory manageable as you grow.
Mail Order Vehicles
The Direct Marketing Association (DMA) estimates that each year more than 131 million Americans order a product or service by phone or mail. Why are we including phone sales in our mail order figures? Because mail order is actually an inaccurate moniker for direct marketing, which includes any form of shop-at-home-or-office order placement, from mail to telephone, fax and e-mail.
What are other forms of mail order sales?
Direct mail is really just another name for mail order, but it usually refers to anything that's not a catalog. This includes sales letters (like Publishers Clearing House), brochures, fliers, postcards and any other sort of printed materials you can send through the U.S. Postal Service to elicit a mailed, telephoned, faxed or e-mailed customer response.
The Internet ranks as the most exciting mail order vehicle since the invention of the catalog. More and more mail order entrepreneurs are turning to the Internet as a supplement to their catalogs or are foregoing paper catalogs altogether. Potential customers have come to expect companies to have a Web presence, especially for any computer-related product or service. But even if your company isn't technology-based, a Web site makes sense. Everything from gift baskets to insurance to concrete--even airplanes--can be purchased online, and people who are Net-savvy use the Web the way they would their local Yellow Pages.
TV commercials are another form of mail order: you know, the ones that advertise knives that slice through concrete or the greatest recording hits of your parents' generation and provides the ordering information on screen. TV advertising can be less expensive than you might guess. The price of TV time depends on various factors, including the size of the market, the length of your ad, the time of day or night your ad airs, the program rating and how much advertising you buy. Prices also vary according to whether you're advertising on a local independent station, a network affiliate, a cable channel or public access television.
Radio commercials also constitute mail order. Advertising on big stations in major markets can be cost-prohibitive for mail order newbies, but you can buy effective and affordable ad time from more intimate local stations for less money than you might think. These smaller stations make up the majority of commercial radio stations in the United States. Their low-power signals limit their geographic reach, but this isn't necessarily a minus. Since the programs on local stations are specifically designed to appeal to their own regional audiences, your advertising can be more closely targeted as well.
Classified newspaper ads usually run from three to 10 lines in length, are one column wide, and excel at minimalism: They have no line art, no photos, no graphics of any kind, and the verbiage is as brief and concise as a Vermont farmer's. So what makes them valuable? For starters, they're very inexpensive yet cover a relatively wide audience. And because they're so inexpensive, they're a terrific way to test new products and markets.
The display ad is a vehicle of a different sort. Because it's larger and usually incorporates photos or some other type of artwork, it's more expensive, but it can be extremely effective if you're advertising a high-end product.More>>here
Sunday, August 12, 2007
7 Pitfalls To Avoid When Starting A Home Business
By: Mal Keenan
Time and time again people believe they can start up a home business with little planning or research. The ending result is a failed online home business within a month or less. Here are 7 aspects to avoid when conducting your home business.
1. Not researching the market - When you start an online home business, it is vital that you do market research prior to starting the business AND during the process. You need to know what products have public appeal and what marketing methods draw in customers more than others.
2. Poor time management - When you run a home business, you have the power to create your own schedule and work whenever you wish to. The problem is many end up taking more free time than they do working on their business. There are hundreds of reasons not to work and plenty of distractions at home and online too, but you have to learn to manage your time effectively. One example of poor time management is spending too much time on online discussion forums, aimlessly browsing from topic to topic.
3. Customer service - In an online home business it is much more difficult to get new customers than it is to get return customers. 80 percent of your business will come from 20 percent of your client base, so make sure you leave your customers satisfied and wanting more. Always answer emails in a timely fashion. If customer becomes too much to handle,
4. Not adequately promoting the business - While it is difficult to get new customers, it certainly is not impossible if you put in the effort. Your business is only as good as the amount of time you put into it. Some businesses can promote themselves, but a majority of home businesses require you to put in the time to reach the market and promote your business.
5. Spending too frequently - Starting a home business can become expensive, but there are many expenses you can get around. Too many people end up spending more than they can afford to get the business going. For instance, instead of buying the most expensive scanner, go with a cheaper model. Until you have steady revenue coming in, watch your budget carefully.
6. Passivity - When starting a home business there is no room for passivity. If you are not a leader, then it may be best for you to go and work for someone else. When running an online home business you write the business plan, sell the product and market it as well, so you have to be willing to take chances to get your business going. Like offline businesses, that means investing time AND cash.
7. Not asking for help - As mentioned, there are multiple tasks you are responsible for when running the online home business. If you are in need of help, don't be afraid to ask for some. If you don't ask for help all that will happen is that you will get stressed out and end up making poor decisions. Online discussion forums are a great place to get your questions answered although avoid spending too much time there as outlined in step 2.
There are several things that can halt the development of your home business, but they can be avoided. By being aware of these pitfalls, you will have a better chance at running a successful online home business.
About the Author
Mal Keenan is the editor of Internet Home Business Articles: here
Time and time again people believe they can start up a home business with little planning or research. The ending result is a failed online home business within a month or less. Here are 7 aspects to avoid when conducting your home business.
1. Not researching the market - When you start an online home business, it is vital that you do market research prior to starting the business AND during the process. You need to know what products have public appeal and what marketing methods draw in customers more than others.
2. Poor time management - When you run a home business, you have the power to create your own schedule and work whenever you wish to. The problem is many end up taking more free time than they do working on their business. There are hundreds of reasons not to work and plenty of distractions at home and online too, but you have to learn to manage your time effectively. One example of poor time management is spending too much time on online discussion forums, aimlessly browsing from topic to topic.
3. Customer service - In an online home business it is much more difficult to get new customers than it is to get return customers. 80 percent of your business will come from 20 percent of your client base, so make sure you leave your customers satisfied and wanting more. Always answer emails in a timely fashion. If customer becomes too much to handle,
4. Not adequately promoting the business - While it is difficult to get new customers, it certainly is not impossible if you put in the effort. Your business is only as good as the amount of time you put into it. Some businesses can promote themselves, but a majority of home businesses require you to put in the time to reach the market and promote your business.
5. Spending too frequently - Starting a home business can become expensive, but there are many expenses you can get around. Too many people end up spending more than they can afford to get the business going. For instance, instead of buying the most expensive scanner, go with a cheaper model. Until you have steady revenue coming in, watch your budget carefully.
6. Passivity - When starting a home business there is no room for passivity. If you are not a leader, then it may be best for you to go and work for someone else. When running an online home business you write the business plan, sell the product and market it as well, so you have to be willing to take chances to get your business going. Like offline businesses, that means investing time AND cash.
7. Not asking for help - As mentioned, there are multiple tasks you are responsible for when running the online home business. If you are in need of help, don't be afraid to ask for some. If you don't ask for help all that will happen is that you will get stressed out and end up making poor decisions. Online discussion forums are a great place to get your questions answered although avoid spending too much time there as outlined in step 2.
There are several things that can halt the development of your home business, but they can be avoided. By being aware of these pitfalls, you will have a better chance at running a successful online home business.
About the Author
Mal Keenan is the editor of Internet Home Business Articles: here
The 3-Step Business Growth Formula
By: Grant D. Robinson
To reach your organization's productivity, sales and revenue goals, it is vital that you continually grow your business.
Are you currently meeting your revenue objectives? If so, great! If not, you are not alone. The majority of organizations are failing to reach their true revenue potential and their leaders haven't yet realized exactly what is holding them back; or they are in denial.
The underlining cause of poor productivity and sales is not what you've been led to believe in other magazine and journal articles. It's probably also not the issues you and your executives have spent your time, efforts and expenses on in attempts to improve revenues in the recent past.
Poor customer service, ineffective marketing, an unreliable workforce, distribution errors, etc., are not the cause of falling short on your productivity, sales and revenue expectations. They are only the symptoms of a larger underlying cause.
Market leaders do not struggle with these costly issues. Five years of research on the most effective organizations has found that they have all followed the same formula in order to take their organizations to the next level of success.
Here is that "3-Step Business Growth Formula." Follow it and you too will eliminate costly "revenue robbers" from your organization forever.
1. Hire Only TOP Performers
The clichés of, "Your employees are your greatest asset" and "You're only as great as your weakest employee" are not simply clichés, they are facts. The truth is, the more productive your employees are, the more profitable your organization will be.
A TOP Performing employee really is the only asset in your company that is guaranteed to make you money. They do so month after month, and year after year.
Unfortunately, only 20 to 33 percent of the employees of market survivors are TOP Performers. The rest of their workforce is comprised of "Workplace Survivors" that do just enough work to get by month after month or year after year.
Your TOP Performers naturally succeed. They do so without external motivation, bonuses, contests, incentives or ultimatums. They fit your culture, their team and their job.
It is critical that you learn the recruiting and employee selection strategies of your market's leaders. They have proved that by hiring a top performer the first time, productivity, sales and revenues will begin to improve.
2. Develop Your Workplace Survivors into TOP Performers
Whereas a top performer makes you money, underachievers always cost you money.
Along with their underperformance comes absenteeism, tardiness, conflict, mistakes, apathy and ultimately turnover. All of which are more detrimental to your bottom line than anything else in business and the underlining cause to larger problems.
It is imperative to create and follow a successful performance boosting process. Your market's leaders insure that every employee, from their executives to entry level, are reviewed and developed at least twice a year. You need to realize that if any employee is not reaching their performance and productivity expectations, your organization will also fall short on reaching its productivity, sales and revenue goals.
Many market survivors act as if they believe not every employee can be a top performer. Do you think market leaders believe this? They don't and that is why they are constantly developing their greatest asset to continually reach expectations.
3. Take Initiative Before Your Competitors Do
To leave competitors in your dust, you can no longer settle for underperformance. Standards and benchmarks must be set on your best employees, not what it takes to survive.
If you are not reaching your revenue objectives and actually believe your productivity and sales can improve, take the initiative to eliminate your costly revenue robbers. Many times, all it takes is a quick analysis of your systems and simple adjustments to bring about profound differences in the productivity of your organization.
Understand the barriers that are standing in the way of peak performance do not disappear on their own. They only get worse and end up costing you more of your time, energy and resources in the long run.
When noticeable issues go unsolved, what kind of message are you sending your managers, employees and clients? Depending on the problem, to your managers it may look like you don't believe in the competency of your leaders. Your employees may begin to believe you don't have faith in your product, service and the organization. Clients will eventually assume you really don't care about them or their business.
This is why it is imperative to allow your belief in your organization to lead to action. If one of your goals is to grow your business this year, take the initiative to do so. Just make sure you do it before your competitors does.
About the Author
Grant D. Robinson is the President of People Values and the Author of the Market Leadership System. To improve your "Hiring Success Rate" of TOP Performing Employees, watch a free, 5-minute, on-line video at: http://www.peoplevalues.com...More>>here
To reach your organization's productivity, sales and revenue goals, it is vital that you continually grow your business.
Are you currently meeting your revenue objectives? If so, great! If not, you are not alone. The majority of organizations are failing to reach their true revenue potential and their leaders haven't yet realized exactly what is holding them back; or they are in denial.
The underlining cause of poor productivity and sales is not what you've been led to believe in other magazine and journal articles. It's probably also not the issues you and your executives have spent your time, efforts and expenses on in attempts to improve revenues in the recent past.
Poor customer service, ineffective marketing, an unreliable workforce, distribution errors, etc., are not the cause of falling short on your productivity, sales and revenue expectations. They are only the symptoms of a larger underlying cause.
Market leaders do not struggle with these costly issues. Five years of research on the most effective organizations has found that they have all followed the same formula in order to take their organizations to the next level of success.
Here is that "3-Step Business Growth Formula." Follow it and you too will eliminate costly "revenue robbers" from your organization forever.
1. Hire Only TOP Performers
The clichés of, "Your employees are your greatest asset" and "You're only as great as your weakest employee" are not simply clichés, they are facts. The truth is, the more productive your employees are, the more profitable your organization will be.
A TOP Performing employee really is the only asset in your company that is guaranteed to make you money. They do so month after month, and year after year.
Unfortunately, only 20 to 33 percent of the employees of market survivors are TOP Performers. The rest of their workforce is comprised of "Workplace Survivors" that do just enough work to get by month after month or year after year.
Your TOP Performers naturally succeed. They do so without external motivation, bonuses, contests, incentives or ultimatums. They fit your culture, their team and their job.
It is critical that you learn the recruiting and employee selection strategies of your market's leaders. They have proved that by hiring a top performer the first time, productivity, sales and revenues will begin to improve.
2. Develop Your Workplace Survivors into TOP Performers
Whereas a top performer makes you money, underachievers always cost you money.
Along with their underperformance comes absenteeism, tardiness, conflict, mistakes, apathy and ultimately turnover. All of which are more detrimental to your bottom line than anything else in business and the underlining cause to larger problems.
It is imperative to create and follow a successful performance boosting process. Your market's leaders insure that every employee, from their executives to entry level, are reviewed and developed at least twice a year. You need to realize that if any employee is not reaching their performance and productivity expectations, your organization will also fall short on reaching its productivity, sales and revenue goals.
Many market survivors act as if they believe not every employee can be a top performer. Do you think market leaders believe this? They don't and that is why they are constantly developing their greatest asset to continually reach expectations.
3. Take Initiative Before Your Competitors Do
To leave competitors in your dust, you can no longer settle for underperformance. Standards and benchmarks must be set on your best employees, not what it takes to survive.
If you are not reaching your revenue objectives and actually believe your productivity and sales can improve, take the initiative to eliminate your costly revenue robbers. Many times, all it takes is a quick analysis of your systems and simple adjustments to bring about profound differences in the productivity of your organization.
Understand the barriers that are standing in the way of peak performance do not disappear on their own. They only get worse and end up costing you more of your time, energy and resources in the long run.
When noticeable issues go unsolved, what kind of message are you sending your managers, employees and clients? Depending on the problem, to your managers it may look like you don't believe in the competency of your leaders. Your employees may begin to believe you don't have faith in your product, service and the organization. Clients will eventually assume you really don't care about them or their business.
This is why it is imperative to allow your belief in your organization to lead to action. If one of your goals is to grow your business this year, take the initiative to do so. Just make sure you do it before your competitors does.
About the Author
Grant D. Robinson is the President of People Values and the Author of the Market Leadership System. To improve your "Hiring Success Rate" of TOP Performing Employees, watch a free, 5-minute, on-line video at: http://www.peoplevalues.com...More>>here
What Does It Take To Make It In Mail Order?
If you don't have the "right" product in mail order, you'll never do much more than break even. To much money, time, and effort are wasted by people trying to sell something that no one wants to buy. More>>here
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