A wholesale distributor is a liaison between the manufacturer of a product and an entrepreneur of wholesale merchandise. You are responsible for meeting the requirements of each proprietor's needs. To be this kind of distributor can be a real challenge. It requires patience, determination and hard work. Not only that, you will need a capital to start up your business. But once you have successfully established yourself in the market, it will surely be a rewarding investment. Read on and learn about how to become a wholesale distributor.
Study. In any business ventures, wholesale or not, it is extremely important that you are fully prepared by being knowledgeable to the best of your ability. It would be very of helpful if you have a degree in business. This way, you are already aware about the things you need to do to attain your goal. However, if you are not educated in this field, do a research by reading books about marketing, commerce and economics or surf the Internet for business 101 subjects.
Choose your product. This may sound easy to you but beware, it is a tricky task that can make or break your business. This is your first decision that would accompany you throughout your life as an entrepreneur, so make sure you apply what you have learned in step 1. Do not make rush decisions, think very carefully. It is advisable that you choose a product that you are interested in.
Know your competition. Once you have determined what product you are going to distribute, make an effort to know about existing businesses with similar supplies. Observe how they go about their work and use this to better your business. As much as possible, avoid copying their ways. Be different and original. It will give you an edge that can attract customers in no time.
Find a manufacturer. Browse on different wholesale companies, make a list and compare prices. Choose a supplier that you can profit the most. Always do a background check for each company so you can prevent scams and any kind of fraud. This is essential since you will be dealing with them for a long time.
Create a business strategy or plan. Now that you know your product, your supplier and price, you can determine your budget by making a comprehensive business plan. This should include a detailed description of your product and an annual projection of profit, liabilities and other miscellaneous expenses.
Obtain your initial capital. You can do this by going to several banks and ask them about making a business loan. Choose a bank that has the lowest interest rates. Only borrow what you need for your business, never combine your personal needs.
Put it all into action. Apply everything you have learned and follow the steps you have created to get the result that you are aiming for. Grow your business by being consistent in everything. Value all your customers by showing them integrity.
To be a wholesale distributor can be difficult at first, but once you got the hang of it, everything that you do will come out naturally. Just always be consistent and document everything. Start slowly but surely. Good luck.