Eric from Simple Life Abroad is a fellow Guatemalan expat who’s always diving into new side hustles. If you’re interested in guest posting on RFI, just let me know.
### Customized Furniture Mini Case-Study
When I’m looking for side hustles, I consider a few key things:
– Does it require a lot of money upfront?
– Would I pay at least what it costs to make the product?
– Is it fun to do?
Luckily, my wife is full of great ideas, so I always have something to consider. Here are some of her recent suggestions:
– Selling pizza from a mobile setup in Antigua, Guatemala.
– Protection systems for taxi drivers.
– An information aggregation product for credit histories in developing countries.
– Furniture design and customization.
Furniture, huh? Let’s get started!
### Financial Investment
Living in Guatemala, as a foreigner, it’s tough to get credit. But the low cost of materials and labor really help balance things out. Ideally, I’d prefer to create and sell my products with Net 30 billing, meaning the customer has 30 days to pay after delivery. This way, I avoid upfront costs and can offer similar terms to my clients, which is crucial for more expensive items. For example, making a six-person dining room table (1.8m x 1.02m x 76cm) costs less than $150 for materials, labor, and delivery.
### Is This Product Valuable?
To Me: Would I at least cover the costs to make this product?
I’m a value-conscious person, both in time and money. If I find value in something I create, I believe others will too. But often, I make products just for myself, and if they happen to appeal to a broader market, that’s a bonus. Throughout the creation process, I constantly look for ways to improve, automate, and scale.
To Others: To gauge the market for custom furniture in Guatemala, here’s my approach:
**Plan**
1. Define the product. I imagine a line of customized modern tables, side tables, and chairs, starting with a high-end dining table and bedroom nightstands.
2. Ensure uniqueness. My furniture will have a modern twist, which is pretty unique in a country known for antique and colonial styles. Offering Net 30 credit terms and a built-to-order model helps reduce the risk of extra inventory.
**Research**
1. Look at similar unique products. Kalea is the main outlet for modern, Ikea-like furniture here, but it’s mostly not made of wood. Those are the customers I want to attract.
2. Estimate inputs. For a dining room table:
– $150 for materials, labor, and transport + 7 business days.
– $20 for graphic design materials + 10-12 hours of work = $35.
Total: $185-$203.50.
While keeping costs low is important, I believe we can sell the final product at a reasonable profit. Competing products at Kalea range from $335 to $399, even though they’re made from different materials.
**Design**
1. Adjust the product and cost structure based on this data to offer undeniable value compared to competitors.
### Would It Be Fun?
For me, something is fun if I learn from it and get the satisfaction of solving a problem or making something beautiful. This is my first time working with wood, so it’s definitely a learning experience (like remembering to wear thick gloves!). Plus, I feel a great sense of pride every time I sit down at our new dining table, enjoying a meal cooked by my amazing wife.
### Conclusion
This project gets a thumbs up on financial investment, value to me and potential customers, and most importantly, it’s fun!
Eric blogs at Simple Life Abroad, where he shares tips to make life easier and more enjoyable. Come join the fun!