How to Start a Small, Successful Mail Order Catalog Business

by Leslie Truex

Catalog shopping dates back more than a hundred years and continues to be popular as consumers look for ways to save time over shopping at local malls. With a ready-made consumer base, a savvy catalog entrepreneur can start a business part time with relatively low overhead depending on how he chooses to run the business.

1. Develop a business plan by determining the types of products you want to sell and how your catalog will be different or unique from other catalogs that sell the same or similar items. Include financial information about how much it will take to start and operate the business, as well as projected income. Startup expenses to research include desktop publishing and printing of the catalog. Finally, include details about your target market--demographics of the people you expect to buy from your catalog--and how you'll market to them.

2. Obtain finances to start your business. There are many ways to get the needed money to start a business, including using your own savings or assets, or using your business plan to obtain loans, investors or partners.

3. Officially set up the business by creating your business structure, such as a limited liability company. Apply for needed permits and licenses through local city or county government offices if required. For example, the City of Houston doesn't issue general business licenses. Even so, you may need a specialty license or permit depending on what you sell. For example, you may need a permit to sell antiques, food items or guns. Obtain a sales tax permit through the state's tax or comptrollers office as most states will require you collect sales tax on purchases made from consumers in your state.

4. Find products and create business relationships with wholesalers and distributors. Unless you're making your own products, you'll need a source of products to sell. Use the Internet to find companies that sell the items you'd like to include in your catalog for discounted or wholesale prices. Use your sales tax permit to obtain your stock without having to pay to sales tax.

5. Design and print your catalog using a desktop publishing program or hiring a desktop publisher. A catalog is a marketing tool so you'll want to learn copywriting or hire a copywriter to help you write enticing information about your products. Take quality pictures of the items to include in the catalog. Use a professional print shop to produce your final catalog. This will likely be one of your biggest expenses, but again your catalog is your sales tool and it needs to be professional looking.

6. Create and implement a marketing plan to get your catalog into the hands of consumers. Consider renting a list of names and addresses of consumers in your target market and send them a copy of the catalog. Run classified or display ads in print media your target market reads. Build a website from which people can buy your products as well.

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