Getting into the wholesale business has become a very attractive thing to do these days, especially with how easy it is to sell things over the Internet. It's gotten to the point where you don't even have to handle product anymore. But before deciding to dive in head first, there are some things that you should know. These tips will come in handy.
The first thing you need to do is ask yourself why you want to get into the wholesale business. Is it because you want to work with other businesses and help people make money or is it because you think it's an easy way to make a quick buck? Believe it or not, the wholesale business is very demanding. You need to have a lot of up front capital to buy product and unless you're going to have someone else store the inventory for you you're going to need a warehouse as well. You're going to be dealing with hundreds of thousands of pieces of inventory and shipping things all over the world. Most retailers expect to get 30 days to pay. What happens if they go out of business before they do? Wholesaling is a very risky business.
The next thing you have to do is study your competition. If you plan on entering a market where there are already dependable distributors you're going to have a tough time of it. You want to get in a market that needs a wholesaler if you want to have a good chance to succeed.
After that, you need to take a look at your financial situation. You have to have a lot of up front capital to get into wholesaling. You have to make sure that you have the resources to establish a relationship with a manufacturer. Also, can you afford to wait 30 days to get your money from the retailers? Startup costs, taxes, property rental and insurance can eat you alive before you ever get your feet off the ground.
Then, you're going to need a business plan. You'll have to get together with lawyers and get advice from consulting services. If you are unfamiliar with the wholesale business you have a lot of education ahead of you.
The next step is applying for all the licenses that you're going to need. There are certain tax laws that you are going to need to be aware of that apply only to wholesalers, such as tax exempt status for goods moved between manufacturers and other retailers.
You're also going to need a location for your business. You need to get a warehouse, an office and make sure that people know where to find you. If you're going to build a warehouse you better make sure you are aware of all the zoning laws. The last thing you want is to have your warehouse torn down because it is in a residential district.
Then comes the marketing. That's right. Just because you're in business doesn't mean people are going to know it. You're going to have to place ads at a number of places including newspapers, Internet, magazines, etc. Advertising is expensive so be prepared.
Finally, when you are in business you better make sure you take care of your customers. That means getting the product to them, answering their questions and taking care of any problems that arise, and problems WILL arise.
Don't forget one thing. You're not going to be running this business alone. You're going to have employees. You'll need to pay them and possibly fire some if they do a poor job, which means hiring new ones. This is an ongoing, never ending process that is incredibly time consuming in itself.
So, you want to be a wholesaler? Just make sure you know what you're getting yourself into.
So what exactly is networking?
Networking is all about person-to-person relationship building. It is far more than going to a networking event and working a room or handing out and collecting as many business cards as you can. Far more. In facts it is all of the following things:
1) It is word of mouth marketing and this is still the most powerful way to generate business for most business owners and professionals
2) As we have just mentioned, it is building relationships. Although you are building your business for yourself, you cannot do it alone. You are going to need people every step of the way e.g. suppliers, staff, customers, partners and so on. Building a relationship is simply getting people to know you, then like you then trust you. Once you have gone through this process, then they will think about helping you, connecting you to others and buying from you.
3) Thirdly, it is about making yourself visible to key audiences and target markets. Raising your profile is vital if you want the right people to come to you, whether they be potential customers, partners or just people who can connect you to the right people.
4) Next, it is about uncovering new opportunities and kick-starting new relationships. Whether your initial contact with someone was via the phone, internet or face-to-face, having a strategy to follow up those contacts is really important if you want to take advantage of the treasure of information and contacts many people have.
5) Fifth, is connecting people, knowledge, ideas and resources. Masterminding is a concept where one mind and one mind equals three. Everything that you want to do in life, someone has probably done it already. Unless you want to re-invent the wheel and make your own mistakes, then take advantage of others to fast track you on the way to your goal.
6) Next is learning by learning how to ask the right questions and listening. I mean really listening. Very few people have well developed listening skills as we are all interested in ourselves and what we have to say. Networking is the ultimate forum to learn from people and if you know how genuinely take an interest in others, ask the right questions and really listen, the things you are looking for will be forthcoming.
7) Finally, networking is about educating others about what you do and learning about what others do. Being great at what you do is not enough; people need to know who you are, why you are good, why you are different and why they should choose to do business with you and not someone else. You have also got to find out these things about others, so you too can choose to do business with the right people.
Networking is about making connections, and allowing things to happen whether it be in a business, personal, social or even technical context. To quote one of the UKs leading networking experts, Rob Brown..
"Business is personal and even the biggest deals, orders, projects, sales, promotions and contacts come down to two or more people making a connection".
We will say it again - if you get it right, networking might well be your richest source of business.
Both Michael Russell & Jeffrey Benson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Michael Russell has sinced written about articles on various topics from Celebrities, Dieting and Diabetes Treatment. Michael RussellYour Independent guide to . Michael Russell's top article generates over 2240000 views. to your Favourites.
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