What if I told you launching your new invention out of your home is a good thing? Many start-up inventors feel self-conscious not having an actual office and warehouse for their start-up company. This feeling is absolutely normal, but I am here to say be proud of your home based warehouse and office. This flies in the face of what’s acceptable to big retailers so you wouldn’t want to broadcast it all over Twitter and Facebook, but in all truth where you are located doesn’t matter.
What does matter is that you are RELIABLE. Big retailers only frown on a home based warehouse and office because they are afraid they can’t trust you. This trust is so important that a retail buyer will actually turn down your great invention if they are uncertain of the stability of your business. If they know you are shipping out of your garage they will unfortunately be concerned that you won’t be able to deliver your goods. However, the great part is… THEY DON’T NEED TO KNOW AND THEY’LL NEVER ASK. As long as you can be responsive to a retail store’s phone calls, emails or faxes and you can ship on time as required, then where you are located doesn’t matter!
When I first launched my invention I was using my garage and basement as the warehouse and a spare bedroom as an office. I was concerned about shipping my product out of the basement and taking important calls in a spare room, but what I quickly learned was it didn’t matter. At one point I was shipping my invention to Bed Bath & Beyond, Linens ‘N Things and The Container Store. None of these retailers knew I had product stacked next to the washing machine! After all, it is hard to imagine 10,000 units of an invention taking up an entire basement and garage. The height of running my start-up from home was when I had 10 pallets of product waiting in the driveway to be picked up by a tractor trailer for a retail delivery. I am certain if these major store buyers could have seen my set-up that they would probably not have worked with me. It doesn’t exactly evoke confidence seeing products staked on pallets in a residential driveway. The good news was that as long as I shipped according to the retailer’s requirements, where I fulfilled the order didn’t matter. I worked hard to make my start-up conditions not inhibit my interactions with retail customers. Eventually, when demand and finances allowed for it, my start-up company moved from the garage to a real office and warehouse. Waiting until my company could afford the added rent and utilities expenses was essential in ensuring a financially sound company. The foundation of making sure your new start-up company is financially stable is one of the most important things any new entrepreneur must follow.
Whether currently running your start-up company out of your home or creating a business plan stating your home will be your warehouse, you can feel confident that starting out of your home is a good thing. Embrace it! Bring a great product to market, be reliable and you’ll know when to add the expense of a warehouse and office. Overall it will start to feel right once you can financially afford it and when the high demand for your product starts putting your RELIABILITY at risk.
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