Project Resource

Product vs Service

The two major business types are product-based businesses and service-based businesses. As the names imply, a product-based business sells physical tangible objects like clothes or computers, while a service-based business sells skills and knowledge, such as tutoring, tailoring, or transport services.

What is a USP?

A unique selling proposition refers to the unique characteristics of a product or service that enables it to stand out from its competitors. Your USP should be something that you do well but is not offered by your competitors. However, being unique for the sake of being unique doesn’t make a good USP. Your product’s unique selling proposition should match what your customers want. And often, the businesses that fail are those that build and sell products without truly understanding what customers want.

Dropshipping vs Inventory

For offline sales channels like physical stores, most retailers use the traditional retail distribution model where a retailer purchases products from a distributor or wholesaler and keeps it in stock until a customer purchases it. The customer usually takes the product home straight after purchase. For online sales channels, the retailer has two broad choices, to maintain an inventory of products like a physical store or to dropship products from a wholesaler or manufacturer.

Break Even Point

The break even point refers to the amount of revenue needed to cover the total fixed and variable costs incurred by a business. Using this we can calculate how many products a business needs to sell to make a profit.