Distributors
act as the vital link between manufacturers and the end customers.
They take products into stores, from where the consumers can easily
buy. Hardly matters what type of industry you're working for, whether
it's food, apparel, agriculture; there is a need for business
distributors. Starting a distribution business can prove a very
profitable business venture, if you plan it thoroughly.
Instructions:
Choose a Niche
Product
Determine
the type of product you are looking to distribute. Stick with your
capabilities if you are already known with a particular industry or
type of product.
Take
License
Take
appropriate licenses and permits from your state and county
including a “Doing Business as” Certificate (DBA), resale permit
and tax ID number. If you are planning to have two or more employees,
you have to take an employer identification number from the IRS.
Lease a
Warehouse
Being
a distributor, you need to hold your inventory and for that you have
to find a warehouse to store your products. The amount of space
depends upon how much inventory you have planned to hold at once and
the products you are distributing.
Develop an
Inventory System
Before
buying products to stock, maintain an inventory system. For e.g.: If
you are starting distribution of garments, figure out whether you
will organize them by brand, size, item number or bar code. The point
is to make sure that everything is well-organized. No hotchpotch
should be there, when you need to find the products so as to minimize
the chances of sending an incorrect order and less would be the
chances of product missing.
Find the
“Right” Manufacturer
Contact
manufacturers who have the relevant products which you are looking to
distribute. If they are a wholesaler, there is a good chance for you
as they must be willing to appoint distributors. Take care of your
discounts on merchandise. As you will be purchasing product in larger
amount, your discount should be greater than the retailer.
Sell
Online
In
this modern era when everything is online, what about selling online
to retailers? Launch a website for your distribution company. Your
website needs to be informational, giving retailers information about
the products and brands you deal in, as well as your order
requirements.
Marketing
is a “must-do”
Market your
products to retailers by giving ads on business websites, business
magazines, by sending brochures to independent retailers. Make sure
you reach out to retailers with physical stores and to online
retailers in the most precise way.
Start up your
new business venture and find distributor business opportunities in
India.
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