Will you attract more customers with a store front or hire a sales representative?

I am a new mom and I have a small online business. My inventory is all over my house and with an 11 mo. old baby, my house becomes almost unliveable. I have been thinking of renting a small commercial space to get my inventory organized and attract more customers. After crunching numbers, I will end up spending $20 to $25K to get my store up and running. My monthly overhead will be $2,225 to 2,600/mo if I run the store my self. Another option is to rent a public storage and hire a person to sell my products to suppliers and other retail stores. This way, I can have more quality time with my baby. If I do this, my monthly overhead will be around $3,900 to 4,200/mo but I don't have to shell out $20K to $25K to start. Which of the two options will give me more revenue?

You have not included the cost of adding a sales representative.

Additionally it is unclear whether you want to build some brand equity for yourself or are interested in become a wholesaler of sorts.

The real answer to your question is bound up in your exit strategy. In other words, what do you want to do with your company.. do you want to hold on to it and grow it, or do you want to eventually sell it too someone? If you want to sell it you will maximize your sale price by having substantial brand equity.

After going through your question i feel you are struck between a choice of expanding your business and your responsibility as a mother towards the infant.If i got you right you too feel that you are more responsible to your baby.So, i suggest it is better if you go for the second option i.e., hiring a sales representative.Since, it will boost your sales as your present on-line customer base will remain intact and you can target new customers preferably the suppliers and retailers who will be generating your sales in bulk.As already expressed hiring a public space will cut your expenses and same capital amount can be used for either hiring more sales persons by which you can capture more market or for special promotions ,offers, discounts on your goods in your new B2B endeavor or you can use both the strategies.Above all your main concern of giving your child the love of mother will be served.

As with most things in business, the answer is "it depends". If you hire your sales reps on commission only, you'll have no outlay unless they produce, but you must be prepared to be generous. Offering them less than 40% commission on sales won't net you much business.

If you have the capability, you might consider doing both. A lot depends on your product and the demand.

One of the easiest ways to start a home based business where you have the ability to set your own hours is by finding a quality company with a hot product that pays you a commission for every one you sell plus gives you the opportunity to hire others who are in the same boat - and make a smaller commission on their efforts.

By bearing down and working hard, you could be financially independent in as little as 5 years.

Thanks for asking,
Rod

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