If you have just been bitten by the entrepreneurial bug and are wanting to set up your own business, consider buying wholesale and selling retail. Retailing usually brings better margins however, is correlated with lesser stock turnaround and obstructing of one’s capital.
The very first thing you need to take in setting up a wholesale account as a new business, would be to enroll your business. Assuming you have already figured out a tricky name for your organization and opened a checking account in that name, you must now give your business legal validity. Unless you’re lawfully registered, most wholesalers will not even look at your suggestion. The people who can provide you a hearing would be the middlemen who usually will not give you the best prices.
Another thing to do would be always to do your research. Have a look at the internet sites of those companies from whom you wish to buy. Proceed to the section that lists “Trader or Associates” requirements. You may gain most of one’s information here about minimum purchase dimensions, payment conditions, shipping, pick up and returns policy. Limit your list into a few select companies where you’re feeling the conditions of business are very favorable.
The secret to setting up a wholesale account as a new business is always to do something like an expert. Type your introductory letter rather on a smartly designed business letterhead and say your business proposition in clear and simple language. The endorsement of one’s proposal depends upon just how well thought out your business strategy is and just how clearly you’re able to communicate it.
If you can produce a personal trip and meet with the management, you’ve got a better prospect of selling yourself to them together with your passion and vision for the business.
If you have done your homework well and also have a legal standing for your company, a few wholesalers will extend their hands of alliance. However, it would be asking for too much to expect them to extend credit cards or sell to you on consignment basis in the beginning. Many will start a COD account and assign an account manager for your requirements. The relationship that you build with your own account manager will go a long way in establishing your credibility as being a serious player. Afterall, they would like you to succeed however, you have to convince them that you’re in this for the long run and will willingly walk the additional mile in ensuring the achievement of your business. As your association with the wholesaler builds up you can ask for credit facilities or better terms of business based on your own past performance.
If you can implement most of the above steps successfully, you’re on the right path to setting up a wholesale account as a new organization. Now take it forwards and set your business plan into action, the sky’s the limitation.
