Contents

Provides the vital steps for starting a wholesale business start-up. Outlined are the top 10 tips for every succesful wholesale business start-up plan.

Top 10 Tips For Getting Started In The Wholesale Business

Top 10 Tips For Getting Started In The Wholesale BusinessWhether you are just thinking about, or you have decided that you would like to start running a wholesale business, there are a number of items that you should spend considerable time planning and researching before going full steam ahead. Proper planning and fact-finding up-front can not only save you from a lot of headaches in the beginning, but can also mean the difference between a successful wholesale business versus a monetary disaster waiting to happen. In this article we will provide you with ten tips to help guide you along the way as you begin planning for your business. They are presented in chronological order so that you can use them as a way to plan out the proper steps along the way. Remember, success depends on many factors and the most important factor is your determination and energy you put into making your business a success! Step 1: Ask Yourself Why? Why do you want to get into the wholesaling business? It is because you would enjoy working with other businesses and manufacturers being the main point of contact between the two? Or is it because you think it is an easy way to make money quick? Wholesaling is a demanding business, and can require lots of up-front capital, warehousing, logistics planning and customer service skills. As the main channel between the manufacturer and retailers you may find yourself dealing with hundreds of thousands of units of merchandise needing to be shipped across the country on a moments notice. Large retailers often pay on a Net-10 or Net-30 schedule, meaning payment is made after the goods are delivered. What would you do if a retailer did not pay or went bankrupt before you received payment? Step 2: Study Your Competition It does no good to enter a market where there already exist established, credible wholesalers for a given product. Retailers want to know they have a dependable supply source that meets their terms and often will not change wholesalers for an established product. Just because you build the warehouse does not mean they will come. Use your local Chamber of Commerce, the Internet and even visit with retailers to find out what wholesalers exist in your area. If you want to specialize in a specific product, contact the manufacturer directly to find out who handles wholesaling for them already in your region. There may be none in your state, or there could be three down the street. Step 3: Assess your Financial Situation Wholesaling can require a lot of up-front capital and expenditures before you even see one cent of income. Do you have the resources to spend on setting up a relationship with a manufacturer who will most likely require you to buy in huge quantities from them? Can you afford to wait up to 30 days for payment? Do you have the money to invest in shipping freight or setting up your own delivery service? Be sure to look past the startup costs as well. Employees, taxes, property rental and insurance are just a few of the things you will need to factor in as ongoing costs. Step 4: The Business Plan A solid business plan is the foundation of any business. You need to make sure that you have spelled out what you intend to do and how you intend to get it done. Not only will banks require this for financing, but often other businesses you deal with will want to see it as well. It should be the guidelines that you follow every day in your business to achieve the goals you have set forth. For this part, it is often wise to work with a business lawyer or seek professional advice from business consulting services. A good resource to help you find people in your area with the necessary skills and background is the Small Business Administration government site. Step 5: Apply for Licenses, Taxing Certificates and Other Necessary Paperwork Nothing is as certain as death and taxes. It is no different in business, with one exception. As a wholesaler you will be required to pay taxes and other fees to your state and to the federal government. The one exception is that you will be granted tax-exempt status for the actual goods you are moving between the manufacturer and other retailers. This can be a tricky process and is handled at the state level. Again, for this part you will want to make extensive use of your state taxing authority as well as local Chambers of Commerce. One wrong mistake here can end up costing you not only money, but possible your entire business. Step 6: Establish Your Facilities Location, location, location. Businesses must exist somewhere and like most things in life there are rules and regulations on where they can be. Will you be having semi-trailers coming to your location at all hours of the day and night? Will you have a storefront for vendors and clients to come calling at? What about electrical, water and sewage needs? Zoning laws exist to make sure that the right structures end up in the right places. Nobody wants a warehouse next door to them in a residential neighborhood. Work with commercial real-estate agencies to find a suitable place for your business. Step 7: Establish Your Relationships You have the facilities, you have the finance now do you have anyone supplying you product or customers for that product? Work with manufacturers and retailers to build a relationship. This can be one of the most difficult parts of the experience, and is where the rubber hits the road. In addition, relationships extend beyond your customers and suppliers. It is good practice to establish relations with your local Chamber of Commerce, retail associations and labor organizations in your area. Step 8: Marketing Wholesalers traditionally do not advertise. That does not mean you should not market your business to others, after all how can you build relationships or expand on existing ones? Wholesaling guides are published and distributed to many retailers and this is where the bulk of your marketing efforts will be directed. The other half should be in going to retailers directly, meeting with buyers and outlining your services. Just because you have a customer today does not mean you can rest on your laurels. Marketing works hand in hand with building a relationship and maintaining it. Step 9: The Machine in Motion: Servicing Your Customers Product is coming in, retailers are placing orders we are all done right? Not exactly. Getting the product to your customers, answering questions about delivery timeline, working with vendors to obtain new product lines, it is a complex and demanding part of the business. In todays just in time marketing model a delay in shipment could mean the end to a business relationship. You must keep your customers informed of any status changes, pricing concerns and product movements from your facility to their loading dock. This is where back end systems come into play by maintaining records and logs of all activity with that customer. Do not underestimate the value of a good Customer Relationship Management system. Step 10: Employees, Accounts Receivable and Other Financial Matters Once everything is up and running your next focus is your business financial present. Employees need to be hired and fired. Payroll needs to be met. Money must come in, and money must go out. Here you should invest in financial talent and services if you do not possess them already. One oversight can mean the loss of hundreds of thousands of dollars; a missed payroll deadline could mean your entire business comes to a halt. It is critical that you constantly keep an eye on the books and on your expenditures. Know when to tighten the belt, and know when to expand.

The Art of Selling

The Art of Selling

Before becoming a salesman a person has to go through a number of trainings and courses, for this profession may only seem easy but those involved in sales for years will say how hard it is to satisfy an average individual of the 21st century. A good salesman should be a first-class psychologist, experienced researcher and an idea generator. This type of profession requires 24 hours a day activity both physical and mental. Salesmen face a serious task, to make a product saleable. What makes a product saleable? The effort you put in to develop the strategy of advertising. There is a definite aim but a big number of possible approaches that can be used. There are three factors that can influence a person in a more or less effective way. These are: imagination, language, and perception systems. The processing of information received is done with the help of bridges of associations created according to the previous experience. When a person thinks about orange juice, he or she imagines himself drinking it with delight and pleasure. You have to work out a way to create this association in his mind to make him buy you product (orange juice, for instance). There are five senses a human has: touch, sound, smell, sight, taste. If you can come up with an advertising slogan that can activate all of the perception systems mentioned above, your campaign will be more likely to succeed. If you work on a direct client, gather information and find out his likes and dislikes. Every person has a dominating perception channel that transmits the biggest amount of information into the brain. If you will be lucky enough to figure out what it is, use it and concentrate on its activation. Youll agree that it will be useless to sell a painting to a blind man that cannot understand the benefits of it. Here is one more point you should concentrate at. Without benefits your product is worth half the price you offer. Client buys not products but benefits he gets from using, owning this product. If you manage to find out what is the desire of a client and how can such a product satisfy his need, you will most likely sell the product successfully. I have already mentioned slogans. Slogans are verbal methods of imagination activation. Verbal means that develop into complex constructions are powerful sales tools that activate the senses. Try to learn the behaviour and habits of people, determine the mimics and gestures that are typical for them in different emotional states. Observe how a person behaves when he is delighted and when he is dissatisfied with something. Remember what you saw and it will be a hint for you for the next time this client knocks on your door. Sales are an ever developing industry that requires constant modernization of the ways to advertise. But they should be chosen wisely and developed carefully. Advertisement areas should occupy a territory fit for competition. Agree, would there be a necessity to advertise anything if there is no competition?

3 Hot Tips For Building Trust And Increasing Sales!

3 Hot Tips For Building Trust And Increasing Sales!

How many times has it happened to you? You walk through the doors of a place of busineess and here he comes - perfectly groomed with a smile planted across his face in greeting. Within two minutes he has talked non-stop and promised you everything, including the stars if you purchase his project. You lift and eyebrow, and think to yourself... "Yeah, right!"The distrust between consumer and salesman is a longstanding feeling. After all, you know they are wanting to make a buck off your purchase. Sure, you don't mind them making a few dollars... everybody has to make a living... but heck, it would be nice if they were at least a little concerned about what your needs are too! Let's face it... customers aren't likely to buy from you unless they feel confident that you will deliver. There are a few easy steps that you can take to give them the confidence they need to take the plunge.1. Let Previous Customers Make The ClaimThe proof is in the pudding... No one can say that you deliver and make good on your promises like a satisfied customer. It pays to use customer testimonials. Now, we're not talking about blindly pasting testimonials everywhere... a little business sense and organization will be helpful in making the most of them.Choose testimonials that are exact and talk about specific aspects of your business. "Thank you so much for your hard work!" is wonderful, but "Thank you for spending 2 hours with me yesterday. Your personal attention is greatly appreciated." says a lot more. Yeah, the reader knows that you are willing to take whatever time it takes to help them through the purchasing process. Be sure to get your customer's permission to use their testimonial as part of your advertising campaign. While you're at it, get as much personal information about them as you can. Their occupation, city, etc., create a more realistic appeal to their testimony.2. Be Specific In Your ClaimsSpecific claims are more believable than vague, generic brags. Order today! It's Fast, Easy and Cheap! Sounds much better when you say... Order Today! Take 2 Minutes to Fill Out Our 7 Step Order Form and Save 20% on Your Purchase! Specific numbers don't always come out even. In fact, readers tend to believe numbers that have decimals are more accurate than whole numbers... even if the real number is exactly a whole number!3. Be RealisticDon't alienate customers with claims that sound too good to be true. Yeah, we all know the old saying that if it sounds too good to be true, it probably is. Unrealistic claims steal your credibility and leave the customers with a raised eyebrow.Think of it this way... what if you do understate the benefits? When your customer finds out the truth, he'll just be that much more satisfied! Marketers suggest that you under promise and over deliver to create the greatest customer satisfaction.Customers who believe in you aren't afraid to buy from you. That means higher sales numbers and greater profit.

Your Affiliate Business - Peripherals, Software, Computers

Your Affiliate Business - Peripherals, Software, Computers

I have always been interested in computers, but in the beginning, I would not venture any further than to the software end of learning. However, learning only the software side, and knowing nothing about the hardware side, can open you up to some costly times at the shop.When I was selling peripherals, I happen to ask my immediate supervisor how he would go about learning the hardware side of computers. He looked at me and flatly stated, "Like I did -- learn by doing build a computer from scratch".Well, that is exactly what I did. And I'll give you a tidbit of what I learned and the problems I encountered.Lessons Learned1. I tried to put a floppy drive from my old unit into my new unit. I blew up the floppy drive. Lesson learned do not put outdated computer components into a new system. Duh! 2. Some of the old programs are not compatible with the new operating system. Did cost me some extra money and time.3. Don't build a new system from scratch it cost more than a manufactured unit, unless you have money to burn, want to learn more about computers, or you are going to repair computers for a living.What do you need in a computer?Since you are going to run your business from your computer you want to make sure you get the best you can get, at the price you can afford.1. When money allows, piggyback an additional hard drive onto your primary hard drive for backup. Needless to say, your primary hard drive will notlast forever.2. CD-ROM (Self explanatory)3. Hard drive Make sure your hard drive has enough memory -- I have several 40 GB hard drives.4. Floppy drive good for quick copies of an Excel, Word, etc.5. Printer A quality printer. When looking for a printer, make sure it is compatible with the operating system you have and the operating system that is currently out on the market. Why? It saves you time you may have to look for an upgrade for your printer online for the new operating system sometimes it's free, sometimes it's not, or sometimes the computer will not support the printer with the new operating systems. They want you to buy anew unit. 6. Power supply some suggest that the computer unit should have 300+ voltage to give your operating system a lot of snap.7. Fans The new units usually have additional fans to cool the CPU which will help extend the life of your computer.8. Networking capabilities you'll never know when you want to add an additional unit, it's always good to be prepared and trust me it will happeneventually.9. If you have to buy a new operating system, I would suggest going with Microsoft XP Professional. I found it very stable, and less likely to crash.SuggestionsIf you start adding everything up, you will realize that I spent more on a "build it yourself unit" versus that of a complete unit. And the complete unit my friend, is definitely the way I will go from now on.I have bought several units, and through hard knocks (rebates not received, wrong unit sent poor customer service) learned that the best deal that I have encountered was from Dell Computers. They offer different computer units, peripherals, printers, etc. with instant savings on select Dell PCs -- great weekly deals reasonable prices and honored rebates. Okay, as you can see I'm sold on Dell if you want to take a closer look you can go to my websiteat www.myaffiliateplace.biz to see for yourself what they have to offer.To conclude, when you buy a computer unit online always be aware of what you're buying, what you will be using it for and with, and where you are buying it and from whom. Sometimes you have to take the hard knocks to learn, which is okay, however, when the hard knocks include an outlay of money it's always good to have some good advise before making a decision.

Business Contacts - Find the User/Influencers

Business contacts are the people you have in your network. These people are all important to your growing business. You need to build and develop relationships with your business contacts in order to move your business forward and expand your customer base.Business contacts fall into two separate categories. It is important for you to distinguish between the two and develop relationships with them accordingly. The two categories of business contacts are influencer/users and users. The people who are both influencers and users are prime business contacts. These business contacts have the potential to use your services themselves and influence others to use your services as well. It is true, every client is a good potential referral source, but the real influencer/users are those who are in the referral business so to speak. These influencer/users also come in two categories:Trusted Advisors to Small BusinessesBusiness contacts in this arena include:AccountantsBookkeepersAttorneysBusiness ManagersConsultantsJust like you call your accountant for referrals to other businesses, other small businesses are doing the same. If you happen to maintain your accountants network, who is he or she most likely to recommend? Niche Technology Providers for Small Businesses This is another category of business contact that is extremely influential. These are people who are in the IT industry but who are not direct competitors. They include:Accounting Software SpecialistsIndustry Niche Software ApplicationsPhone System DealersSoftware DevelopersSystem BuildersWebsite DesignersThese businesses work for companies that will likely be in your sweet spot. If you develop business contacts with these people they will be in a position to recommend your IT services to their clients. The Bottom Line on Business ContactsBusiness contacts are all important. They do come in different categories and some should be focused on more than others. Those in the influencer/user category are very powerful business contacts because not only can they use your company they can refer you to others who could hire your company. Copyright MMI-MMVI, Computer Consultants Secrets. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}

Terms of Sale - Mind Your Own Cashflow

Terms of sale are what will keep you in positive cashflow. As a new business you can't afford to finance other people. You need to keep cash flowing through your business so you have to set clear terms of sale from the start.Terms of Sale TipsDon't be too quick to give new clients credit. You can really get taken to the cleaners if your terms of sale include generous credit extension. If you do offer credit, keep the limits relatively low until the client has built-up a solid credit history with you. Always insist on written agreements as part of your terms of sale. Verbal promises are for amateurs. Even if everybody knows everybody in your town, you should insist on a simple one or two-page agreement that clarifies your role, responsibilities, and obligations.Always get a deposit check on any major project. Require 25% at the absolute minimum and 50% if you can get it. Bill weekly and not when you get around to it. A lot of people start off sending their bills out every week, but then they get really busy and it slows to every three or four weeks. The reason for setting favoriable terms of sale is to get money into your bank account, not let your clients keep it in theirs.Always enforce your credit policies. When you have a late payment, send past due notice or make a phone call to make sure the invoice gets paid. Make sure you have funds set-aside for the inevitable dry spell. Despite rigourous terms of sale you will have slow periods. Don't get cuaght with insuffienct funds. The Bottom Line on "Terms of Sale" Setting appropriate terms of sale is an important function. You need to understand your total capital needs and that includes monitoring your daily cashflow. Make sure your terms of sale are such that you are not caught short. When you do the work, you expect to be paid and the best way to protect yourself is by setting, and sticking by clear and reasonable terms of sale.Copyright MMI-MMVI, Small Biz Tech Talk. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}

Summary

Provides the vital steps for starting a wholesale business start-up. Outlined are the top 10 tips for every succesful wholesale business start-up plan.