Let’s welcome Eric from Simple Life Abroad, a fellow Guatemalan expat and a prolific side hustler.
Customized Furniture Mini Case-Study
When I’m on the lookout for side hustles, there are a few important things I consider:
1. Does it need a big financial investment?
2. Would I at least cover the costs of making this product?
3. Would it be enjoyable to do?
Fortunately, my spouse is full of ideas, so I always have something new to consider for my side hustles. Here are a few ideas they’ve suggested recently:
– Mobile pizza sales in Antigua, Guatemala’s top tourist spot.
– Protection systems for taxi drivers.
– Information aggregation products for credit histories in developing nations.
– Furniture design and customization.
The idea of customized furniture caught my eye, so let’s dive into that one.
Talking About Financial Investment
Living in Guatemala means credit is almost impossible to get for foreigners. But the low costs of raw materials and labor here make up for it. Ideally, I’d prefer to create and sell products on a Net 30 billing basis, meaning customers have 30 days after delivery to make payment. This way, I don’t need to spend money upfront, and I can offer similar payment terms to my clients. For example, creating a six-person dining room table (1.8m x 1.02m x 76cm) would cost less than $150 for materials, labor, and delivery.
Is This Product Desired or Valuable?
To Me:
I’m mindful of both time and money, so if something is worth my investment, it’s probably valuable to others too. While many of my creations are for personal use, I love it when they appeal to a broader market. During the creation process, I continuously think about how to improve, automate, and scale.
To Others:
To gauge the local market for customized furniture, here’s what I do:
1. Plan the Product:
I want to start with customized modern tables, side tables, and chairs. Beginning with a high-end dining room table and bedroom nightstands seems strategic to build my brand from these price points.
2. Make it Unique:
I plan to give a modern twist to wooden furniture in a country known for its antique and colonial styles. With Net 30 payment terms and a built-to-order system, I don’t worry about excess stock. That’s a win for me.
Research
1. Identify similar products on the market:
Kalea, a major outlet in Guatemala, sells modern IKEA-like furniture. Even though they don’t use wood, they cater to the same customer base I aim for.
2. Estimate inputs:
For a dining room table, raw materials, labor, and transportation costs total around $150 with a turnaround time of 7 business days. For graphic design, it’s $20 plus 10-12 hours of labor, making the total cost around $185-$203.50.
3. Compare costs and prices:
Even with the low cost, the equivalent product at Kalea sells for $335-$399. While it’s hard to compare wood to metal/glass, these prices work in my favor.
Design Smartly
Using the previous data, I’ll adjust the product and cost structure to make it a better value than the competition.
Would It Be Fun?
For me, a project is fun if it’s a learning experience and gives me satisfaction from solving a problem or creating something beautiful. This woodworking venture is teaching me a lot—like the importance of wearing thick gloves when using a wood chisel! Plus, every meal at our new dining table, cooked by my amazing wife, feels incredibly rewarding.
So yes, this side hustle is definitely fun and approved!
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My name is Eric, and I blog at SimpleLifeAbroad.com, where I share tips to make life easier and more enjoyable. Want to join me?