80 grassroots self-made entrepreneurial records (below): out of the smart home business dilemma of the five major points!

Starting from scratch in the smart home industry takes a lot of courage and determination. One small mistake can easily lead to failure, and all your efforts could be wasted. Today, Zhijianet Xiaobian shares an article written by someone who has been in the industry for years. He’s not satisfied with his current status and is reflecting on his journey as an entrepreneur with passion and ambition. He built his own business in the smart home sector from the ground up. How did he do it? Let’s take a look at his real-life experience.

This article captures both the triumphs and the challenges of starting a smart home business. It's a true reflection of the hard work, financial risks, and lessons learned along the way. The author hopes that this story will inspire others and help them avoid common pitfalls. Instead of wasting time and money, they can learn from real experiences.

Related Article: 80 Grassroots Start-up Business Record (Top): Nearly 10,000 Words Smart Home Entrepreneurship Experience Shared!

Third, the failures experienced became the foundation for success.

Reading history books, I often come across the phrase "death and rebirth." I never imagined it would happen to me. One day, my money ran out and so did my staff. It wasn’t a sudden windfall, but meeting the right person changed everything. This person didn’t give me money or a business, but he helped me change my approach completely.

Here are the key reasons why he made a difference:

1. He introduced me to a reliable factory – Factory XXX (name omitted). This factory had a comprehensive product line covering practical smart home solutions. Previously, I was trying to source products from multiple factories, which led to higher costs and less support. After working with this factory, I could purchase a variety of products with a lower initial investment and better support. No franchise fee, and even with a 10,000 credit limit, it was manageable if you focused on variety and volume.

2. He shared valuable experience that proved useful in practice. His advice helped me save time and money, and quickly boosted my business. Without his guidance, I might have made many more mistakes.

Fourth, after the storm comes the rainbow: strategic adjustments for the company.

1. Re-evaluating the company's operating strategy

(1) Abandoning the idea of pursuing large orders. We no longer focus on big contracts, as they require too much effort and may not be worth the risk. We only take them when the opportunity arises.

(2) Focusing on smart home solutions. Our main business is smart home systems, and we present ourselves as a professional company in this field. Specializing in home intelligence reduces the need for excessive relationships, eliminates unnecessary expenses, and lowers overall risk.

We now focus on projects that are truly valuable to customers. These include home multimedia cabling, AV wiring, background music systems, and digital home setups. These are practical, affordable, and widely appealing to most households.

2. Adjusting the marketing plan

Marketing is crucial, and we’ve made several changes based on past experiences:

(1) Avoiding expensive traditional media ads. They’re costly and not very effective for new companies.

(2) Using color pages instead of expensive brochures. A low-cost, high-impact method that can reach a large audience with minimal investment.

(3) Participating in local forums and group buying events. These provide real users and great exposure without high costs.

(4) Building relationships with decoration companies. We don’t chase them aggressively, but instead offer value through smart features in their designs, which helps us gain trust and long-term partnerships.

3. Adjusting pricing strategies. In a smaller city, high profit margins aren’t sustainable. We reduced prices slightly, focusing on steady, small profits that eventually led to growth.

4. Hiring strategies. Initially, we didn’t hire college graduates. Instead, we used electricians and project managers who could help bring in business with commission-based arrangements.

5. Building relationships. Even people in government or high positions need home renovations. By maintaining good relationships, we ensured consistent referrals and opportunities.

Five Key Points to Overcome Smart Home Business Challenges

Based on personal experience, here are the five main points that helped me get out of the trouble:

1. Find a good factory – one with a complete product range, no joining fee, and good technical support.

2. Focus on a clear product structure – specialize in home intelligence with specific services like AV centers, multimedia wiring, and background music.

3. Have a clear marketing strategy – avoid wasting time on ineffective methods and focus on cost-effective ways to grow the business.

4. Use human resources wisely – train and manage a small team efficiently to handle all operations.

5. Cultivate relationships – building strong connections with clients and partners leads to long-term business opportunities.

The above is a real account of my journey in the smart home industry. If you follow these steps, you can build a profitable business in about six months. I hope this story helps others avoid the same struggles and achieve success more easily.

Author: Lemon Bake Hours (a pseudonym)

Recommended Reading

My Smart Home Business Notes (I): The Hard 100 Days of Change

My Smart Home Startup Notes (II): The Crazy Things I Experienced When Choosing Vendors

My Smart Home Entrepreneurial Notes (III): Detours and Lessons Learned in the Early Stage

80 Grassroots Self-made Entrepreneurial Record (Part I): Nearly 10,000 Words of Smart Home Entrepreneurship Experience Shared

80 Grassroots Self-made Entrepreneurial Records (Part II): Five Key Points to Get Out of the Smart Home Business Dilemma

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