Six simple reasons to start a white label business

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Date: 11 February 2020

An online white label seller checks stock and packs orders for shipping.

In many ways, there has never been a better time to start a new business. Client bases are larger than ever, while consumers are increasingly happy to try new products and services.

If you want to achieve success, though, it’s vital that you take the right path. As a new start up, the white label route may be the perfect solution. 

A white label business is essentially one in which you take products made by another company. Your job is to rebrand (legally) and package them as your own. It’s a fairly simple concept, and there are many potential benefits to be gained from it.

Here are six you should consider. 

1. You’ll open the door to new opportunities 

When starting a business from scratch, there are many different logistical factors to consider. Aside from the financial obligations, you’ll need to consider other issues. The list includes product research, legalities, and other contributing challenges. Without a background in the industry you love, it could be impossible to break into it. Until now. 

Choosing a white label model allows you to leverage success from the experience and expertise of the product supplier. This allows you to capitalise on markets that would ordinarily be closed to you. The booming CBD business revolution is a great example. You simply couldn’t embrace the thriving market without white label products. 

Essentially, white label means you no longer need to be an expert in the product. You just need to understand why it’s great, as well as the habits of the consumer. 

2. The blueprint for success is in place 

The harsh reality of modern business is that a large percentage of start ups are destined to fail. Therefore, when taking the first steps into the world of business, you need to know that there is an opportunity for your firm to thrive. This is one of the most telling reasons to choose white label. 

White label product providers are already working with several entrepreneurs like you. Not all of those small businesses will succeed. Nonetheless, the fact that some of them are already achieving great things shows that there is a chance for yours. You’ll still need to build a winning strategy, but you can safely place your confidence in the products. 

Knowing that your brand can succeed will provide reassurance through difficult moments, too. When choosing traditional business models, your motivation could fade. 

3. It’s less time-consuming 

For a lot of business owners, the need to start turning a profit ASAP piles on a huge amount of pressure. Sadly, the time (and capital) needed to develop products and conduct market research can't be ignored. It can cause the venture to fail before the process has even started. When opting for the white label approach, there are far fewer obstacles to manoeuvre. 

The products are already in place. You simply need to choose the right items, build a brand, and focus on ensuring the products reach the right people. There are far fewer delays to consider, allowing you to get on with making money right away. When you consider the reduced outlay on product development and stocking, you can turn a profit in year one. 

This is an outcome that very few start ups on a traditional path will enjoy. When combined with reduced workloads, which allow you to start as a side hustle, white label is ideal. 

4. You get guaranteed professional outcomes 

Formulating the idea for winning products and a great brand image is one thing. Turning the vision into a reality is another altogether. When taking on the entire process yourself, there will be a lot of areas where you lack experience and expertise. When opting for a white label solution, you can be sure that all of the managed elements are under control. 

Products will be professionally manufactured and safe. Similarly, packaging products - especially those using templates - will be printed to professional standards. It is often possible to use dropshipping services for white label agreements too. In turn, you can be sure that the order fulfilment elements are in good health, and can avoid handling stock. 

The company you partner with has their own interests at heart and will not risk their reputation. As such, you needn’t worry about standards slipping. 

5. You gain logistical and legal support 

Launching a business is a serious matter that must be handled with care. It’s vital that you satisfy your legal obligations, while an understanding of the financial matters is crucial too.

In many ways, the use of a white label agreement makes the entire process easier to manage, as many aspects are combined. In fact, the partner company may provide itemised billing or use a portal that offers you instant access to the necessary data.

If nothing else, knowing that these aspects are under control will provide peace of mind. It’ll also let you focus on the work. 

The partner company will want your business to perform well, as it will bring more sales for them. As such, they will often offer their advice and expertise too, which can be extremely useful. 

6. It cranks up the enjoyment 

Last but not least, you should not overlook the fact that running a white label business can be great fun. You will naturally choose a product and industry that you are interested in. Moreover, you can bypass the tedious aspects of product research and testing to focus on branding and client interactions. This creates a particularly enjoyable work situation. 

Aside from being great for your personal enjoyment, this can actively improve the business model. Your passion and enthusiasm will encourage you to produce better results, while customers will pick up on the positivity. This can subsequently influence their feelings towards your brands and products. It will then bring greater conversion rates and revenue. 

Earning more money from your business endeavours is sure to keep you smiling for the long haul. If that doesn’t encourage you to choose white label solutions, what will? 

Copyright 2020. Article was made possible by site supporter Jeremy Bowler

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