In this video we are going to talk about breaking motor, vastly scaling the business. This is a business in which you can create your own product. You will not only learn how to start your own product, but you will also learn how you can distribute it.

You are going to find out the things that you need in order to be able to create your own physical product and distribute it.

The important thing that you need to focus on is the market research about whether people will want to buy your product or not.

If you are going to start a physical product you have to invest more time in checking the market. You cannot start a product that is already on the market. You have to understand the category that your product belongs to.

You have to be either a price fighter selling very cheap products or you want to be in the premium products selling very high-quality expensive products. You will have a hard time competing with other people if you are in the middle-priced products.

I have tried to find potential wholesalers who would buy this product before it is created.

You would talk with retailers and people who are going to sell it to customers. You would want their opinion on whether this is a good product or not. You will also want to find out from them if that product is highly competitive in the market.

You need to have some minimum production on the product. That means that you have to produce a certain quantity of this product.

You will have to pay every day for storing your products in a warehouse. Another problem that you may have is if you are dealing with a food product your, product will start expiring. After the expiration date, you cannot sell the product. Also by coming near the expiration date, you have to decrease the price of your product, because after the expiration date the product cannot be sold.

Another problem that you may face is the upfront money. You have to invest a certain amount of money in the beginning, because you have to buy it first before you sell it at a higher price.

You need to have an upcoming production of the product. When people start purchasing your product and if people are satisfied with your product, they will want to reorder it continuously. That is why you need to have a certain production speed. You have to know how fast your manufacturing company can produce your product and then you have to calculate whether you can afford this cash flow or not.

Another problem is that if you sell something to a wholesaler they will not always going to pay you immediately. It is possible that they may want to pay you after 30 to 60 days after you deliver the product.

You have to invest money for the next couple of months. It is very hard to calculate all of that money, but at the end of the day this is a 7 – figure business, so it is definitely worth it.

You have to focus on certain legal aspects like taxes on your products. You will have to pay taxes for the ingredients of your products. If you want to import ingredients from other countries in order to produce your product you will have to pay taxes on the import. You have to check whether this is legal to sell certain products with specific ingredients in certain countries.

This is a 7 – figure business model that is way more complex than online business models. The advantage of this business model is that it will give you a very good income once the product works, but the disadvantage is that it is harder to start.

Another advantage is that fewer people are competing with you in this industry compared to online business models.

Everyone can start selling websites online, online design, eCommerce. The entry barriers are very low, whereas in this business model the profitability is huge and the entry barriers are very high. That is what you get if you want to invest your time and effort into this business model.


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