• Critical point 1 – You need to create a product in a tight niche
• Critical point 2 – You need to be sure there are customers willing to buy it at your price
• Critical point 3 – You need to effectively market your product to your target audience (Google page 1)
• Critical point 3 – You need to set the price point to enable a great profit
• Critical point 4 - You need to be able to purchase parts at lowest possible price
• Critical point 5 – You need to be able to source parts locally if possible
• Critical point 6 – Always have back up parts suppliers
• Critical point 7 – Only use foreign suppliers, like China, if the part you need kills the profit in your home country
• Critical point 8 – Treat your suppliers like gold. Pay them on time and don’t haggle. When the chips are down they will come through for you if you have been good to them.

The product below is the main stay of my business. The drum vacuum. It turns an old steel drum into a powerful wet and dry industrial vacuum. I manufacture them so they can fit all drums worldwide.

When the American company stopped supplying me I knew that I had a winner.

• There were no manufacturers of Drum Vacs in Australia
• If I could make one, I would be the only supplier
• I had all the technical information to build them
• I had all the suppliers in place like welders and laser cutters
• I knew how they operated
• I had customers wanting to buy them
• It was a product in a tight niche
• It was a product that I could make multiple variations
• It was a product that I could sell for a premium
• It was a product that I could fit with local parts
• I had access to all the accessories needed