Most entrepreneurs start off through selling someone else’s product that’s already proven in the marketplace and earning a commission off sales. It’s easier, it’s quicker, there’s less risk involved, and less initial investment required.
In fact, that’s how I started. I was selling a product that already had a name in the market, and I was damn good at it. In the process, I learned the ins and outs of sales, which was an inevitable part of my journey as an entrepreneur.
However, at some point, you start wondering – am I going to be doing this forever? The money is great, but what about time invested into making each sale happen? What about automation, how do I scale this business?
That is the point where you start actively thinking about building your own product and growing an empire on top of it.
Let’s take a look at some of the major arguments why you should and shouldn’t build your own product.
Why You Should Build Your Own Product
- The number one reason why people opt to building their own product instead of working with someone else’s is full control. When you’re responsible for every part of the process – the management, the production, the logistics, the customer support – instead of just sales, it’s completely up to the entrepreneur to shape the company.
- Naturally, that means possibilities to scale and automate your business. When you’re building a house on someone else’s turf, you never know when the owner decides to end the party. Inversely, having full control over production means unlimited potential.
- Last, but not least, is reputation. While money is a factor, it’s far from being the only thing you’re getting when you’re selling a product of your own. You’re building awareness and reputation, all of which leads to long-term, sustainable growth.
Why You Shouldn’t Build Your Own Product
- It’s a lot of responsibility. Being in charge of a full all business areas, from design to customer support, means you’re no longer in your comfy salesman shoes. You’re now the ship captain, and there will be leaks for you to seal.
- It takes investment. Building a legitimate product and a sustainable production process takes a lot of resources, both time and money. Product building means testing, rebuilding your product, more testing, and so on. This is hard work.
- Customer support can be a bitch. Running your own customer support department is one of the key factors of a successful business, so get ready to deep dive into the science of making your customers happy.