It is one of the first decisions that faces an entrepreneur. After deciding to venture into business on your own, you must also decide how to sell your labor of love, how to reach people who will want to buy it. There are three fundamental choices available to the small businessperson: retail, mail order, and wholesale. Any of them, or a combination of them, can result in success.

Deciding whether retail is for you is largely a matter of temperament. Shop owners are by and large sociable people, who can easily chat with customers and browsers for much of the day. But opening a shop takes more than a love of people; it takes money and talent. Expenses will come from buying trips and from securing the best location, inventory, and store design. And because a store has a number of fixed costs--rent and salaries among them--it can be difficult to adapt to a changing market. Beyond the products that you carry, the design of the store, the attractiveness of the displays, and the quality of customer service are some elements that will help keep faithful customers and attract new ones. Running a shop also takes extreme dedication. Shop owners are quick to admit that running a store is like caring for a baby that needs constant care and attention.

For designers--from bridal to furniture to flower--a store is the ideal showcase. It's a chance to arrange creations exactly as you see them, to create a whole world with your vision. Some designers open a store temporarily to establish an image--a name--and then move exclusively into wholesale.

Mail order is similar to retail, although there is rarely direct contact with customers. Some mail-order businesswomen, like designers, use retail shops to showcase products and establish a large client base and extensive mailing list before turning exclusively to mail order. Other entrepreneurs try to begin directly in mail order, which may sound easy and hassle-free, but is not. Start-up costs can be quite high when you add expenses for inventory, warehouse space, printing, mailing, and shipping. Remember that mail-order businesses do not have the chance to gain customers who happen to be strolling by, which is always possible in retail, so an in-depth knowledge of the target market is crucial. This will help guide you as you determine the price of your items, decide if and when you are ready to diversify, and design a catalogue. No costs should be spared in the quality and design of the catalogue itself. This is your primary selling tool and must be unique in order to stand out from the abundance of catalogues, reach your market, and convince consumers to purchase your product.

If you have a product that can be reproduced on a large scale, and you don't wish to be tied to a shop, then a wholesale or manufacturing business may be your road to success. Remember that in wholesale the distribution of your product is what makes profit, and you must find the most efficient ways of gaining exposure for your product. Some manufacturers hire sales representatives, others place ads in trade publications, contact mail-order houses, or display at trade shows. Some even find buyers simply by taking their products around to local retail shops in their area.

Selling via the Internet is what some see as the wave of the future, and many businesswomen have begun setting up "virtual stores" to sell their products and services. Though creating a website is not cheap, start-up costs are lower than traditional retail shops, and many established businesses find websites an effective tool for reaching a larger market.

Copyright © 1999 Hearst Communications, Inc.

The Business of Bliss: How to Profit from Doing What You Love
By the Editors of Victoria Magazine and Janet Allon
Published by Hearst Books; 0-688-16084-0; $25.00US

If you thought it was impossible to make money doing what you love, think again. Hundreds of thousands of women do succeed, and you can too. More than any other publication in America, Victoria magazine has celebrated women who have turned their dreams into profitable businesses. In this inspiring new book, their stories come alive to encourage you to achieve your own business of bliss.  In an extensive resource section, listings of the most useful publications, websites, and professional associations guide you toward your goal. Whether you want to be a hatmaker or a shoemaker, a potter or a pastry chef, you'll find the way in The business of Bliss.