BusinessHABHome Appliances Distribution/Supply Business: Starting a Home Appliances Distribution/Supply Business can be exciting and fun.
You will be selling items such as electric kettles, electric stoves,ovens, microwaves, and many others with corporate names and logos.
Homes and small businesses such as restaurants are also potential customers.
It is best to sell supply items through an established direct sales organization. Startups costs are minimal.
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Home Appliances Distribution/Supply Business:
1. Estimate your startup costs.
In addition to a business plan, you will also need some idea of how much money it will take to get your business up and running. As a distributor, your single biggest expense will be inventory. This means that your startup costs will vary widely depending on what you are planning on selling. You will also need a place of business, office equipment, and some warehouse equipment (like forklifts if you have heavy products or shelves if you have lighter products).
- For an example of how much costs can vary, two successful business in different markets started with $700 and $1.5 million, respectively. The first, a tie company, started with such a small amount because the business was run from home, started with low inventory costs, and didn’t require any equipment to manage. The second, a fine wine retailer, had expensive product to buy, had to rent a large warehouse, and had high operating expenses like temperature-controlling the warehouse and investing in equipment to transport the product around the warehouse and to customers.
- The advent of online distribution has also created new options for distribution businesses. One of these, drop-shipping, allows for distributors to avoid all inventory control and shipping issues by never taking physical possession of the product. Never taking control of inventory means that your initial investment can be much lower. However, this a crowded market that can be difficult to make money in.
2. Figure out how to sell your products.
This will depend largely on who your customers are and what type of products you’re selling.
In any case, your goal should be to let potential customers know about your business and what you can offer.
This can mean anything from advertising to personal meetings with store owners to search-engine optimization (SEO).
As part of selling, put together a marketing plan so that you can promote your services.
This may include the costs of printing brochures, creating catalogues detailing your offerings, and placing ads in trade journals or magazines.
As a small business, you can expect to do a lot of marketing for the first few years until you have a good-sized customer base and have established a reputation.
3.Determine how you will be funding your business.
With low startup costs, you may be able to purchase your inventory .
And get your business started with money you already have.
However, more expensive startup costs may require you to take out a loan.
Home Appliances Distribution/Supply Business
4. Form your company legally.
If you’re planning to operate as a corporation, LLC, or any other type of company.
You’ll have to legally create the company before you can do business.
Check with your state regulations and see if you need to create an operating agreement or another type of founding document.
Gather any business partners you have for this venture and have them sign any legal documents you fill out.
The primary advantage of forming a company is that your finances will be legally separated from those of your company.
This minimizes risk to you in the event that your business is sued or goes into bankruptcy.
Home Appliances Distribution/Supply Business
5. Make your business official by getting it licensed and registered.
You will have to register your “doing business as” (company) name with your city or county business office.
Other legal steps may be required to get your business started.
Contact your local Small Business Administration office for more information.
6. Find a location for your business.
The size of the space you need to hold your inventory will be determined by the size of your product and your delivery method.
You don’t need inventory space for drop-shipping.
You should consider starting off small as your business builds a reputation.
As your business grows, you can move into larger facilities that can accommodate your inventory needs, such as a distribution warehouse.
It is conceivable that a successful distribution business could be built and run from your home.
This depends on the physical size of your inventory, however
Home Appliances Distribution/Supply Business
7. Get an office:
Set up an office in your home with a computer, printer, fax machine and file cabinet.
Use a revenue/expense ledger to keep track of all sales and expenses.
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8. Create a business name
Create a business name for your promotional supplies business.
Use a name like Jones Advertising Specialities, which is highly descriptive.
Register your doing business as through your local county or city administration office, according to Business.gov. Apply for a vendor’s license at the same time, as you will need to pay sales taxes on in-state customers.
Home Appliances Distribution/Supply Business
9. Contact manufacturers or wholesalers of your products.
You will need to find sources from which you will buy your product.
To locate manufacturers and wholesalers, contact the National Association of Wholesaler-Distributors or use an online resource like http://thomasnet.com.
10. Reference business opportunity magazines,
Reference business opportunity magazines.
Such as “Entrepreneur” or “Small Business Opportunities,” in search of promotional supplies direct sales companies.
Check for advertising specialty companies online through search engines, such as Google.com and Yahoo.com.
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Home Appliances Distribution/Supply Business
11. Call some of the promotional supply direct sales companies
Call some of the promotional supply direct sales companies.
Find out if your potential supplier will ship orders out for you, which will keep your inventory costs down.
Choose the promotional supplies company that offers you the best commissions or lowest per-unit costs.
Make sure your direct sales company sells a large variety of your preferred products.
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12. Purchase inventory.
Once you’ve found a source for the product, it’s time to place your first order.
Unless you’re using the drop-shipping model.
You’ll need to purchase however much inventory you think you can sell.
Keep in mind not only your budget and space constraints but also how many items you will likely sell at first.
This is especially true of products with a short shelf-life.
When ordering inventory, keep the following tips in mind:
- Don’t buy too much inventory, especially at first.
- Try to estimate your customer’s needs before you invest in inventory.
- If you can get away with low overhead (storing items at home or at a cheap location) at first, go for it.
- Purchase inventory to a point where you can sell that inventory before you have to pay the manufacturer or distributor for it
Home Appliances Distribution/Supply Business
13. Ask your promotional supplies company if they provide a website for your customers.
Ask your promotional supplies company if they provide a website for your customers.
Plan on using this website for customers to place future orders from you.
Include your website on all business cards, brochures, catalogs and order forms.
Home Appliances Distribution/Supply Business
14. Call corporations, schools, restaurants and churches.
Call corporations, schools, restaurants and churches.
Talk to business managers, principals, owners and pastors.
Eespectively, about ordering promotional supplies from you.
Set up appointments to visit these types of individuals in person.
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Home Appliances Distribution/Supply Business
15. Design a catalog that lays out your products.
Take a catalog, brochures, business cards and order forms with you on all sales calls.
Fill out an order form when people order from you.
Leave a brochure, business card and order form behind if an individual needs more time before placing an order.
You can send these out to potential clients so that they can see what you have to offer.
Another option is to highlight a few items.
And then lead your potential clients to a website that shows off your full inventory
Home Appliances Distribution/Supply Business
16. Take all orders home with your each day.
Take all orders home with your each day.
Place individual orders for people through your direct sales company.
Just provide the direct sales company with the name and address of each customer.
Allow the direct sales company to ship all of your orders out to customers.
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Home Appliances Distribution/Supply Business
17. Market your product to potential customers.
Send out your catalog to potential customers in your area.
You can also make cold calls or place ads in trade publication relevant to your products.
With some luck and salesmanship, your first orders will be coming in soon!
Place classified advertising through your local newspaper.
Invite people to visit your website or call you for additional information.
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18. Pay income taxes on your profits
Make sure you pay income taxes on your profits. Be aware of the deduction you can take for using your home office for business, according to the Internal Revenue Service.
Home Appliances Distribution/Supply Business
19.Know the needed things
- Computer
- Fax machine
- Printer
- File cabinet
- Revenue/expense ledger
- Manila folders
- Direct sales or wholesale supplier
- Website
- Business cards
- Brochures
- Catalogs
- Order forms
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Home Appliances Distribution/Supply Business
20. Get contact
Contact your best customers every month or two to see if they need more promotional items.
Take an order over the phone or thorough your website if the business has wants to order again.
Contact all companies about any knew products that you are marketing.
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