Research & Refine your Business Idea
Subscription boxes are becoming a very popular way for people to get the items they need or want on a regular basis. They come in a huge variety of types, from gaming boxes to clothing, shaving and even boxes for tooth brushes. Consequently, it can be a great business to get in on!
One of the fantastic aspects of running a subscription box is that you can do it from home, or your own desired workspace. As long as you can get the items you need for the box at a fair price and make a profit, you’ll be good to go! Just make sure to plan the business thoroughly before you get started.
Choosing Your Niche – What To Consider
There are a lot of directions you can go when it comes to a subscription box. you can opt to go for something fun, or for something that people need on a regular basis, but may enjoy the convenience of having sent to them. It can save them from having to go out to purchase these items themselves.
While the fun options are just that, fun, it’s worth keeping in mind that when people are going through a rough time financially, it’s often the luxury choices that are cut away first. That said, you may still get enough of a demand that business isn’t effected too much by that.
It’s also worth thinking about what kinds of items you can get or make at a lower cost. That way, you can provide plenty of value to customers while still making a profit for the effort you put in.
Pricing can be a tricky aspect with subscription boxes. Naturally, you want the price to be low enough that people are willing to take on the subscription. However, it’s also important for you to make a profit. Generally speaking, it’s recommended that you try to manage about 40% profit for what you’re offering.
The good news is, you can get some help in determining the cost using a pricing guide. This handy page allows you to input the value for the items in the box as well as packing materials to provide an estimate for how much should be charged for each box.
Sourcing For Your Boxes
Once you’ve decided on the type of box and the price, it’s important to make sure you have sources for your items. Naturally, there will need to be reliability in knowing customers will be getting the same kinds of items. For example, if socks are going to be part of the box, it tends to be a good idea to use the same brand, or at least equal levels of quality.
People need to know basically what to expect from the box, and it can help you to know you’ll be able to get those items at a solid price. This is another reason why having something like a shaving subscription box can be a little easier, as the items can be more limited without cutting into the value customers receive.
Creating your Business Website
Having a business website tends to be a standard way for subscription boxes to operate. It allows customers to take a look at the different package options they may have, as well as get a cl0ser look at what goes into each subscription box. By providing this information easily, you help customers in deciding to purchase it.
It’s also very easy to make a website that will lay out all of the information customers need in a clear, concise way. In addition, allowing them to easily order right there ensures more purchased. You can use sites like Squarespace and Wix in creating a website that is professional and easy to look at.
Setting up a website isn’t as hard as it may sound, in-fact, many hosting providers have tailored their service around small businesses who may not be tech savvy. We suggest going with BlueHost to host your website, they’re service is simple and easy to use/setup and they’re currently offering 60% off hosting, including free domain registration.
Additionally, creating a blog on your website is also a great way to attract organic traffic and expand your business. Checkout our full guide on the best and easiest way to setup a WordPress blog here.
Marketing Your Business
Marketing your subscription box business well is going to be key for getting customers interested. Fortunately, there are many ways that you can market your business, including digitally, in print and through the use of social media.
Each choice can really provide a lot in the way of benefits, so it’s worth making use of all of them to the extents that suit your company best.
Digital marketing can include things like advertisements on the websites of others, whether that’s personal websites or sites like Facebook or other larger sites that allow you to place ads.
It can also mean using other digital mediums like advertisements in podcasts, on television, prior to YouTube videos and through applications like Spotify. There are really a wide variety of places you can market digitally!
For those who may not be as technologically-inclined, marketing in the real world can be a great option. While these days, the vast majority of people are on the internet, it can’t hurt to cover all your bases.
Things like mailers, billboards, brochures and more are great options. You might even consider mailing out some coupons to get people a little more enticed in trying out your business!
A great option for just about any business lies in creating social media profiles. Making use of as much social media as you can will give you a great way to both advertise and communicate with customers.
Furthermore, having a social media profile is completely free, so it’s not a form of advertising that you have to pay for. Customers also often enjoy being able to make comments, leave reviews and talk to other customers, and social media is a fantastic way to do that!
Setting Goals and KPI’s
It’s important to set goals in order to determine how well your business is progressing. Something business owners often pay attention to are KPI’s, or Key Performance Indicators. These are specific goals to pay attention to and make sure that you’re on track to success.
Some examples might include your overall sales, the number of subscriptions you have going in a given month and the profit you’re making. These are all able to provide clear ideas of how well you’re doing. Just make sure to set clear goals that you can aim towards and re-assess as needed.
Plan your Finances
Planning finances is extremely important when ensuring that your business is a success. It’s best to start by thinking about the costs involved in getting the items for the boxes as well as the shipping costs you’ll need to pay. Setting up a bank account for the business is a great idea as well!
If the amount you’re going to need to get started is more than you have available, you have a few options to get the funds. These can include some crowd funding, which includes getting donations from those who are interested in your product through sites like Kickstarter.
In addition, you can also choose to talk to friends and family about your business idea and see if they will help to fund it.
Adopt an Entrepreneurial Mindset
Especially if you’re new to starting a business, it’s worth keeping in mind that it’s a process prone to ups and downs. Even if you get off to a solid start easily, you may find that the interest of customers can wax and wane. Because of that, it’s important to continually grow as you work towards your goals.
It’s perfectly normal to have to make changes during the process. Being flexible and solving problems well when they pop up will go a long way toward ensuring your success overall. Furthermore, remember that some road bumps are perfectly normal as you learn.
Other things to consider when starting your subscription box
You’ll need to make sure to set up your business fully and correctly. In the process, you’ll need to decide what kind of business is best for you. From corporations to sole proprietorships, there are a number of choices you can select based on what you need.
It can also be useful to learn about what you’ll need to keep track of for the purposes of taxes. That way, you can avoid a huge headache when tax season rolls around. It’s also worth keeping in mind that things like business registration and taxes can differ from place to place.
At some point, you will need to choose a business name as well. As you’re doing this, you may want to come up with a few ideas so that you have backup options. Sometimes, another business may already have your first name choice!
Accounting & Bookkeeping:
It’s also going to be important to track the funds that are spent and acquired. That way, you can keep tabs on those things and track progress your business is making. However, bookkeeping isn’t easy for everyone, so it’s wise to find a way to get it done effectively.
This might include hiring a regular employee or freelancer using a site like Upwork. Each can offer unique benefits, as freelancers may be more experienced and have advice to offer. Meanwhile, your own employee can learn how to do the bookkeeping in the best possible way for your business.
Whether you’re hiring regular employees or gaining the assistance of freelancers, it’s a good idea to understand the rules and laws involved in hiring. There are plenty of aspects to understand well, like breaks, hours and pay, in order to provide a healthy work environment.
These laws will differ based on your location, so it’s worthwhile to make sure that you look into your local laws. That way, you can provide the best possible work space for your employees.