7 Top Tips for Starting a Distribution Business

Dnkfwnxm 400x400

By BizBritain

over 1 year ago

read

It's possible for anyone to form a distribution business - though you will need to be at least a little ambitious, driven and determined to bring it to long term success. Distributors typically directly purchase products from a company before selling them to other companies; therefore, your business would be a middleman. Here is some advice for helping you to be successful in this.

Winding road

Decide what kinds of products you would like to distribute

At this point, you might be tempted to research which products tend to be the most lucrative for distributors. However, if you are just getting started, eHow UK advises that you sell products that attract your interest or are familiar to you. This is because you will already know a certain amount about these products.

Do some research at a bookstore

There, you might be able to find some home business periodicals mentioning companies selling the types of products that will be sold by your distribution firm. You could even add these companies' contact details to your smartphone's notes application while you are in the bookstore; this would enable you to avoid having to spend money purchasing the magazines.

Contact a company supplying what you want to sell

You've done research into one side of the coin; however, you also need to look at the other side! Look for a company that offers attractive shipping policies with the products that it supplies. One good example of such a company is New Era Fuels, which can dispatch Gas Oil through an express next day delivery service and also allows collection at depots in Epping, Tonbridge and Barking.

Decide on your company's name

You could choose something simple and to-the-point, such as your surname or initials followed by the word "Distributors". However, it should go without saying that you should choose a company name that will attract respect for what you will be doing - even as a novice distributor.
Get in touch with select businesses near where you are
Your intent here is to find businesses that sell items identical or similar to products that your company will aim to source and then distribute. With each of these businesses, ask to speak to the person responsible for purchasing decisions. Then, you can show them the products that you seek to distribute.

Don't lose sight of consumer tastes

This is advice provided on the Entrepreneur website. You have to remember that these tastes can change - and, if they do so quickly, this could seriously derail even a corporate strategy that has been meticulously planned. What items do people want and how much are they willing to spend on them?

Focus on developing good relationships

Relationships are vital to distributor-customer transactions. Therefore, if you want those transactions to continue regularly bearing fruit, it naturally follows that you should make sure that the relationships stay strong and unfaltering!

Aim not to keep bringing down your prices in the pursuit of business; instead, work diligently on building strong relationships that could prove invaluable.

Cookies help us deliver our services. By using our services, you agree to our use of cookies.