I heard that you have already read the first article of this series and that you are eager to learn more about getting your small business started as a full-time student. You’ve prepared all the prerequisites for your project, but you’re still unsure whether you should create a sample before starting to sell your project, and whether you should handle production or outsource it, considering again your limited resources, as a full-time student.

Let’s dive into the topic, shall we?

Why are samples so important?

As I’ve already mentioned in my previous article, you should create a prototype or invest in a sample before marketing anything. This allows potential customers to really visualize what they’ll be purchasing. You’d be tempted to minimize your investment by merely putting words on the idea or the product you want to sell. Trust me, I’ve been there, and done that! However, I can assure you that potential customers want to see what they’ll be paying for concretely.

One sentence I always tell aspiring entrepreneurs is “You’ll need to spend money to make money”: That’s the essence of any investment. The time and money you’ll put in your sample or prototype should have positive returns because believe me, a lot more people will be interested in buying something when they know precisely what they’re getting. Additionally, it is better to “fail” after only making one sample, than to be stuck with an absurd inventory that cost you all of your savings!

Where to seek samples?

Sample-making can be exhausting. You will have to search extensively for a reliable and reputable manufacturer who can comply with your limitations and business values. I recommend browsing e-commerce supplier websites (such as Alibaba) and opening an RFQ (request for quotation). Posting an RFQ allows you to gather quotes from multiple suppliers for the product you’re looking to create/buy, assuring you the best price and quality.

Now here are a few things you might want to include in your RFQ:

·        Product specifications and concept pictures/sketches

·        Your ideal lead time for bulk orders

Also include questions such as:

·        General inquiries about the company (certifications, warranties, policies in case of defects or delays, work environment…)

·        MOQ for the company (minimum order quantity[1])

·        The cost and lead time for a sample

·        The number of free modifications to the sample allowed, if needed.

·        Price estimates for bulk orders (e.g., quantities like 10 pieces, 25 pieces, 100 pieces, etc.)

Inquiring about a price estimate for bulk orders allows you to plan your funding goals when starting a project, helping you determine your overall budget and how much you can charge your customers for the products. Certainly, there might be some variations in the final price after producing the sample. However, any legitimate manufacturer should be able to provide all this information.

Once you receive quotations, make sure to check the manufacturer’s history as well as their customer reviews. This will help you determine if they’re reliable. You can also request pictures of past work they’ve completed.

Making vs. Outsourcing

After receiving quotations, you may compare the cost, advantages, and disadvantages of outsourcing vs. manufacturing yourself (if you can make the product you want to sell).

Here’s an example of things I considered for my embroidered clothing business:

1) Outsourcing

• Sample cost
• MOQ
• Longer processing time
• Limited control over quality
• Possible import duty fees

2) Making

• Embroidery machine and materials cost
• Responsibility for the entire supply chain (highly time-consuming)
• Necessary skills

Obviously, you’ll want to bring the real numbers to the table to make the decision. There isn’t necessarily one “right” answer, it all depends on the risks you’re willing to take with the resources you have and what works best with your unique circumstances.

How to go about outsourcing?

If you’ve decided to outsource your products, refer to the previous section “Where to seek samples?” to get started.

After receiving a satisfactory sample, you can start selling your product!

Consider exploring crowdfunding platforms like Kickstarter or Backerkit, which allow risk-free product launches. Pre-orders are an excellent starting point when you want to introduce a new product, in my opinion. It’s a lot easier to manage, as you can launch a project with the required MOQ in mind. You simply cancel the project if you don’t get the necessary funds to produce the MOQ. Crowdfunding platforms can make this a lot easier to manage than opening pre-orders on your own website let’s say. While I prefer managing things on my website, crowdfunding platforms allow you to launch a project for “free”, because you’ll just pay some service fees if your project is successful.

In the following article of this series, I will elaborate on the legal aspects of business, such as business registration and how to keep track of your business expenses.

[1] MOQ refers to the minimum number of units required for purchase by the manufacturer. Some manufacturers don’t have one, which can be practical when you’re starting out. Some manufacturers may also be flexible regarding their MOQ.