Small Business Startup
Being Able to Produce the Product

(Date posted: February 22, 2009)

This step in the small business startup shows you how to produce a quality product. (The term "product" refers to goods, services, or information.) A quality product is one that can satisfy the needs and desires of likely customers at a price they can afford.

If you already know how to produce a quality product then you can skip this step and go on to the next one.

Before beginning this step, you should have:

  • Refined your product's features
  • Developed the sales program to solicit customers
  • Planned the costs and expenses

Previous steps show you how to do this.

The desired result of this step is being able to produce a quality product.

You will use the following topics to complete this step:

Guidelines
Procedures
Example
Go or no-go decision

You will be using this knowledge in future steps when you finalize the startup requirements and start business operations.

This step precedes the above activities by several steps to allow you sufficient learning time, if needed.


IMPORTANT

Before using this information to start a business be sure to read the following notice: Disclaimer

Guidelines

To succeed in business you must be able to produce a quality product. Before you start a business venture, you have to know how to accomplish this essential task.

For most of these business ideas, I am assuming that you already have the skills needed to produce the product. However, you may come across a business idea that appeals to you even though you aren't presently qualified to produce the product. This step shows you how to learn the skills needed to produce a product.

This step comes early in the Small Business Startup program so you will have time to develop any needed skills before starting business operations.

NOTE: You can go on to the following steps while still working on this step.

The low-cost, low-risk type of business I recommend uses mostly your own personal effort to produce a product. Thus, you have much more flexibility in setting an acceptable sales price. This is in contrast to people who sell products that they purchase from others. These people have to deal with insurance, shipping expenses, and handling expenses. They have to set a sales price to cover their purchases and operating expenses. Whereas businesses selling mostly the owners' personal efforts don't have to cover those large costs and expenses.

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Procedures

Following are some methods that may help you learn how to produce a quality product.

NOTE: If you are developing a low-cost, low-risk type of business, review the Bootstrap Methods page in another section for ways to save on cash.

Learn how to produce the product

If you don't already know, you need to learn about producing the product. See Chapter 10: Learn New Skills in my free Magic Success Secrets ebook for help.

Determine needed equipment, materials, or supplies

After learning the basic information per above, you should know what equipment, materials, and supplies are required to produce the product. However, you may choose to provide only a limited range of products at first to limit the cost of equipment. As you expand the business, you could buy other equipment.

Select needed suppliers

Now you can determine where to acquire any needed equipment, materials, or supplies. You need to purchase items of a sufficient quality to produce a quality product. These suppliers might be stores in your own city, mail-order houses, or firms on the Internet.

Select needed subcontractors

Since you want to deliver a quality product, you may prefer to hire an expert, such as a subcontractor, to produce a certain part of the overall product. Therefore, if you are remodeling a house, for example, you may want to hire an electrician for the electrical work and a plumber for the plumbing work on the project.

You normally would want to get references before hiring a subcontractor. You want to be sure that they have been able to please most of their customers.

Learn by doing

Create a sample product -- This usually will be a small version of the product. You just want to get the experience of actually producing the product. So you don't want to spend very much money when doing this. You might be able to arrange for a potential customer before creating the sample product.

On-the-job training -- Maybe you can work for someone on a part-time or trial basis in order to get any needed experience. Perhaps they will take you on as an apprentice or intern. You may even agree to work without pay just to gain the experience.

Produce products at a discount -- You may agree to perform some work for a customer and receive only the cost of any required materials and supplies.

Perhaps you can use some customers as "guinea pigs" until you have perfected your skills. (You may be able to get customers to cooperate with you by charging a much lower sales price.)

However, you need to explain your lack of experience and agree to correct any errors or problems at your own expense.

Achieving the needed skills -- As you gain experience, you can start charging a reasonable amount for your own effort in producing the product. At some point, you will have the experience needed to start your own business.

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Example

I am using my own small business startup for this example. I hope it will help you.

This example uses my proposed information publication business.

Learn how to produce the product

I am learning how to produce my proposed products by building this free website. My proposed information products will have the same kind of information as my website. My skills are being developed from using my revelations, my past writings on business, and my subconscious mind. They also come from researching the Internet and writing the pages for the website. This is the best kind of training for creating these special reports.

Determine needed equipment, materials, or supplies

While building the free website, I am using my computer along with programs for creating documents, spreadsheets, and web pages. I am also using computer supplies, mainly reams of copy paper. I do not need any production materials because my products are computer files.

Select needed suppliers

I have two main suppliers. I use Office Depot for computer equipment, programs, and supplies. I use Site Build It! for Web hosting and help with creating web pages. I will also be using Site Build It! when I set up a sales page for my products.

Select needed subcontractors

I don't need any subcontractors since I do all the production work myself.

Learn by doing

Create a sample product -- my sample products are the various web pages on this free website.

On-the-job training -- you could probably say that building this website is on-the-job training. It is a job and it certainly is training me.

Produce products at a discount -- my products (web pages) so far are free. That is the best discount there is.

Achieving the needed skills -- with this website almost half-complete, I am rapidly developing the skills needed to produce the special reports.

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Go or no-go decision

This decision concerns the ability to produce a quality product.

Go on to the Gathering the Needed Resources step in your small business startup if you can answer "yes" to the following questions:

  • Have you developed or are you developing the ability to produce a quality product?
  • Are you satisfied that your proposed product can satisfy the needs and desires of your likely customers at a price they can afford?

If you have answered "no" to any of the above questions, go to this topic on another page to see what to do next.

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