Wholesale distributorship is a good way for aspiring entrepreneurs to build their businesses and ultimately make a profit. Wholesalers will provide goods or products to retailers for a profit and they usually get these items from the manufacturers themselves.
However, starting a wholesale business can be overwhelming since there are many aspects to consider such as formulating a business plan, financial planning, sourcing the items and finding secured storage. But those challenges are worth it once you see the profits rolling in. Here is a quick guide to help you get started.
Choose the items that you plan to sell
You may want to sell various items but if you are just starting, it is best to focus on one product first and then just venture out when the time comes. It is best to research the different saleable products in the market first and then choose the best one that is more feasible for you.
Pick a good business name
Once you figure out which item or items to sell, the next step is to come up with a good name that will best represent your business. Your business name must be unique but not to the point that consumers may not recognize what you are representing.
Draft your business plan
You can start your business plan from scratch or you may get inspiration from using a business plan template or software program. Your business plan must include an overview of your business and market analysis.
Get the necessary license or permits to operate
Your business must be legitimate before you can find a source in the wholesale marketplace. Check with your local tax office and get the necessary permits or licenses so you can operate your business with no problems.
At this point, you may also want to get an employer identification number since that is needed when you need to file taxes. However, if your business entity is a sole proprietorship, then you may want to skip this part.
Plan the logistics
– Look for a reliable manufacturer that can supply your goods. You can either get your items from large-scale manufacturers or you can opt to partner with independent manufacturers.
– Consider where you will be storing the items by looking for a reliable warehouse storage space. If you are just starting with just small items, then you can store the items in your garage or in your spare room. However, as your business expands, it is best to have the items stored in warehouse facilities to ensure that they are safely stored.
– Partner with a good shipper that offers various shipping options at reasonable prices. Check online for local shipping companies and see if they can offer the best service.
– Hire the right employees if it is needed. But for new business owners who may still be working from their homes, you may need to handle the business on your own or get help from family members.
