Settling up of a successful business is coming out as a necessity mainly in this era of dying businesses wherein businesses are dying because of misjudgement of the product line. The products or services sold do not hold demand in the market because of which the business fails due to losses.
Mainly, the fault in selection of the product line is the main reason for closing of many businesses especially start-ups which are built casually without proper market research. In most of the start-up cases; there is no much demand for the product or services sold in the long run leading to the closure or merger of the business.
Thus, it is very important to thoughtfully invest in selecting the product line as it makes 70 percent reason for any successful business to come into existence.
For instance, demand for construction and home renovation material is made all throughout the year. Thus, it could be a good product line to choose after evaluating the deficit in the market demand for the said product line. How much demand is there after eradicating the current market supply of the product line will make you reach the numbers?
Accounting the demand forecast for the next four years related to the product line will give you an idea of the feasibility of your business idea. Thus, reading a research report or analysis on the said product line will come out as a great help before zeroing on the product line.
Similarly if we look at travelling, the demand for corporate travel will reduce in the coming time because of the social havoc which comes because of commuting. The application of digital technology and web conferences, business talks and chats would reduce the demand for travelling for business purposes which would reduce the demand for travel products and services to a great extent. Thus, before choosing travel products and services as your business product line give it a thought while considering the overall demand.
For settling a successful business, it is important to choose the product line that is demanded. Food, fashion and interior sector is over stocked with so many restaurants and fashion stores at every nook and corner of the country. So, if you are starting with a food and fashion product line, then there is a huge possibility that the business would fail. The same applies to travel organising companies as corporate travel will lower down.
Product Lines to Ponder Over
However, engineering sectors and home repair sectors including both water and electrical repairs are enjoying scarcity of good suppliers. That could be one successful product line.
Along with that, supply for materials used in the raw materials of the construction process can be a very promising business line. The simple example of it is PVC (Poly Vinyl Chloride).
Also, other materials used to make raw materials for the end product can be a promising product line.
While looking at the end product; the material used for creating the raw material of the end product is usually ignored as a promising product line by many sole proprietors. This is the reason why the food, travel and fashion sector is overstocked with products and suppliers making a space for many failed businesses.
-Learnt from my father Ramesh Chawla, a retired sole proprietor himself, to value the prime seed with which the end product is formed and emphasizing on that as the product line. Rather than focusing on the main product as the only business line because the manufacturers of it are many. Thus, it is hard to get orders and compete with the already established businesses.