Start A Home Equipment Business - Business Ideas

Updated: September 15th, 2022
Start A Home Equipment Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

There are some cool things about the home equipment industry that make it an appealing business. Starting a home equipment business isn't easy. To do it properly, you need the right tools and equipment. Starting a home equipment business will definitely improve your financial outlook but you need lots of capital to start one.

Having a successful home equipment business is largely dependent upon the training and experience of the owner. Starting a home equipment business can be ideal for people who want to start a business but don't want the hassle of managing a physical location.

Starting a home equipment business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell home equipment, or selling home equipment online, you can use this page as a guide for everything you'll need to know.

Key Stats

revenue (monthly)
$65K
starting costs
$23.3K
gross margin
32%
avg product price
$505
time to build
300 days
growth
Direct sales
business model
E-Commerce
time investment
Side project
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$600

$4,700

Equipment & Supply Expenses

$66

$700

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Advertising & Marketing Costs

$75

$4,786

Software Expenses

$150

$2,420

Total Startup Costs

$2,865

$46,573

Successful Businesses

Business URL Rank

SimpliSafe Home Security Systems

simplisafe.com

16,032

Home and Exercise Equipment by NordicTrack

nordictrack.com

27,101

Control Systems for Home Automation, Campus & Building Control by Crestron Electronics [Crestron Electronics, Inc.]

crestron.com

36,994

SupplyWorks

supplyworks.com

112,992

Medical Supplies, Home Medical Equipment, Home Health Care

allegromedical.com

177,475

Cuda Kitchen

cudakitchen.com

603,816

Rotoshovel

rotoshovel.com

840,334

AMSEC American Security

amsecusa.com

913,229

AeroCare Holdings, Inc

aerocareusa.com

918,269

Fitness Depot

thefitnessdepot.com

935,017

AZPonds & Supplies – Pond Supplies at affordable prices and FREE Shipping on most items! We carry everything you need for your existing or new pond – liners, submersible pumps, external pumps, filters, waterfalls, Koi and fish supplies. You need it? We have it!

azponds.com

943,464

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Meaningful business connections

You never know who you will meet as a home equipment business. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Easy to encourage "impulse buy"

In the home equipment business, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.

Control of workload

With starting a home equipment business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Unlimited income potential

With starting a home equipment business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A home equipment business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Low margins

The gross margins for your home equipment business are typically around 32%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the home equipment business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a home equipment business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜