Start Up advice
How to start your own consumer goods firm
Start-Up Britain says 80 businesses are started every hour
With technology advancing and trends constantly shifting to open new avenues of opportunity, now is an excellent time to launch a consumer goods start-up company.
E-commerce has paved the way for start-ups to get their foot in the door without the need of renting a high street property, while platforms such as YouTube and Facebook have provided free advertising for sectors such as fashion and cosmetics.
Appealing to Generation X is almost essential if you want a quick and easy way to drive sales. The importance of e-commerce is proven when you consider that in the past year, approximately 87% of UK consumers have bought at least one product online. To investigate further, plastic injection moulding specialists, Omega Plastics, shares its advice on how start-up consumer good companies can become a success.
Money has the loudest voice in commerce and you need to ensure your prices are competitive to prosper. In a recent article, findings from StartUp Britain (a national, government-backed campaign) suggests that there are around 80 new businesses launching in the UK every hour, so it’s clear that entrepreneurial competition is fierce.
When you launch a company, diversifying your brand is key to getting noticed and winning customers.
Competitive pricing is one of the four main pricing strategies. For start-ups to acquire and retain clients, you’ll need to match or beat the cost of the market leader. Remember, people have instant access to multiple websites and will compare prices before making a purchase.
Demand and supply
A fundamental component of good business: supply and demand. If nobody wants it, they won’t buy it, but if they do, it’s your chance to boost profits.
Sell a product that solves a need and do your research to establish a gap in the market that you can fill. If your product has competition, ensure that there is room for you in the industry, and then make your range stand out from the others.
If you don’t know what makes your product better than anyone else’s, how will your consumers know? And why would they buy it over products from established brands?
Using online platforms and services is key to a start-up’s success — thankfully, it costs a lot less than opening a new store on the high street and employing staff to run it. E-commerce not only saves you money on overhead costs, but it also has the potential to reach a large audience at once.
The fashion industry has shown that businesses can find success primarily through e-commerce, and this form of trading and advertising continues to influence consumer trends — which is excellent news for small start-ups on a budget.
Get digital and grab the opportunity to drive growth and make an impact against well-known labels. For example, ASOS is currently ranked number 2 in the online clothing shopping category and had over 73 million visits in August 2017, with more than a quarter of its traffic coming from the UK. Other online start-ups such as Missguided, Pretty Little Thing and Boohoo have all also successfully capitalised on the demand for online shopping.
Of course, online success is not limited to the world of fashion. Amazon and eBay have both become one-stop online shops for consumer goods, which proves that — with digital opportunities — there is no reason why you can’t get a seat at the big-league table.
Aside from online shopping, the internet is also home to another very powerful platform that can help take any start-up to the next level practically overnight. Social media allows you to get noticed next to retail giants without the need for a large marketing budget.
Networking sites allow you to show off your products and services while engaging with potential consumers. Not only does this build brand awareness and loyalty, but it also enables your brand to get to know its audience for future marketing purposes.
Combining social media, online advertising and digital shops; you can help your start-up become a success in no time.