Means to an End.

by Roy Paul Prosise on November 11th, 2015

​Why would you not be able to manufacture an inventory of product for dirt cheap in a Chinese factory and convince a retail chain to buy your product for every shelf in every store? Your company buys each unit at a dollar, sells at $10 over 100,000 units a month and you make a small fortune.  Once you have the framework in place, you are able to groom a motivated college graduate to run your business operations so you can retire early with a fat paycheck in the mail each week. The American Dream can become reality but getting there is never that easy!
First you must develop a strong relationship with your supplier. If you want the lowest unit cost and there is labor involved in making your product, you have to be in Asia. When your supplier holds your tooling assets in a foreign country, it can be difficult to know the safety and security of your assets on this side of the pond! Your supplier can change materials or quality of components without your consent to save a few pennies on each part. If you are not constantly validating your production with QC, you might end up with a container of useless product in the US. Who is going to pay you back, the Asian supplier?
The cost to educate yourself in product development can bury you if you’re not careful. Piggy back on a real expert. Ideally you want a professional to design and prove your product and product specifications. You want a professional to build your internet presence with a website, e-commerce, SEO and social media. You want a pro to run your PR and marketing campaigns. You want a veteran sales representative to lock down new accounts at a low commission rate. You can always try to offer a trade to acquire the development tools you need for a percent of equity or future revenue shares. This way your partners “get some skin in the game” and have real incentive to help you help them make profit. You don’t have to learn the hard way, but you don’t want to give up the entire piece of the pie so make sure to set a limit of how much stake in the company you are willing to give up. Trust but verify your business relationships. The last thing you want to do is get in bed with an unreliable or unethical partner, and find out after the damage is already done.
The point is that there are many stumbling blocks on the road to take your concept to market and be able to live the success story.

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