If you are getting bored with your current job or looking for some change, you can try starting a wholesale distribution business. Wholesale distribution business sales are at $ 3.2 Trillion across the world. The business is growing year on year. In this article, we would tell you a step-by-step process on how to start a wholesale distribution business.
What is a wholesale distribution business?
Under the wholesale distribution business, we can buy products directly from manufacturers and sell them to retailers or end-users, or consumers. The wholesale distribution business is like buying at a low cost and selling the products at t high price. The wholesaler would buy the products, stores in warehouses, or go-downs and sell the products at retail prices. He would act like an in-direct agent in selling the products.
How to start a wholesale distribution business?
Here is the step-by-step guide on how to start a wholesale distribution business.
Step#1 – Choose the products to buy under wholesale business
Your primary step would be in identifying the products which you want to do wholesale business. It could be any niche product like books or clothing or children’s toys etc.
Step#2 – Prepare a business plan for your wholesale distribution business
Once you finalize which products you want to do business with, the next step is preparing the business plan. The business plan should cover your analysis of products, cost of procurement, distribution costs, sale price, and finally the profits.
Step # 3 – Get necessary licenses from your local authority
Depending on your local authority guidelines, you need to procure the necessary license to run the wholesale distribution business.
Step # 4 – Lease / Buy warehouse facility
You need to lease or buy a warehouse facility. When you choose such a facility, ensure you keep an eye on logistics and they are nearer to transport facilities. Also, some products like food products require special warehouse facilities. Hence choosing a warehouse would differ from product to product.
Step # 5 – Put your purchase order with low-cost Manufacturers
Choosing good quality products at a low cost is a key factor. You should list down all possible manufacturer names where you can procure your products at low costs. Several manufacturers offer discounts if you buy bulk quantities. Identifying such manufacturers is key.
Step # 6 –Hire key people for warehouse maintenance
If you get products to your warehouse, that would not be sufficient. They need to be maintained properly. Identify key staff who can take care of warehouse maintenance.
Step # 7 – Identify potential retailers or end-users
Identifying potential retailers is not that easy. You should enquire about who would be buying your products and you should know what competitors are offering to the retailers or end-users. Any extra discount beyond what competitors are offering would be good to start your business.
Does this wholesale distribution business is good to start?
The wholesale distribution business is growing year on year and currently, it is at $ 3.2 trillion. If you can put a good plan and have marketing skills, you can easily make this business successful.