Buying or starting a distribution business
The idea to become an independent distributor is like starting any other business it requires a business license and a business plan, whether you decide to buy a distribution business for sale or start one there's a lot to know.
Now depending on what you decide to drive you may even need to become certified and in other cases a higher-class driver's license depending on what type of vehicle you decide to use. But being an independent distributor isn't for everyone, it's a one-two-team business, and most of the time you are always on the go, From taking phone orders or in-person orders to picking up orders to delivering them.
What does an independent distribution business do?
As an independent distributor, your role is to provide a service to a home or business, this is inventory that can be distributed. you buy goods at a wholesale price and sell them for a profit, you are the middle person. Many people will think with the rise of the internet and many businesses might just be buying inventory directly online should one start an independent distribution business? The answer is yes! Distribution is what keeps businesses moving.
Businesses of all sizes rely on distributors, as they have to run there day to day operations they deal with independent distributors for certain stuff, which can be anything from fresh produce to paper products like coffee cups and food ware, so if you still considering and not sure if you should become an independent distributor then keep reading below.
Steps to becoming an independent distributor
If you decide you want to move forward and take the jump to become an independent distributor, there are a few things you will need to figure out.
Step 1:Decide on what you want to distribute
Your first decision is figuring out what you want to sell to your clients, this part is important! Selling just to make money doesn’t last long, you will get less motivated and that will affect your business.
There are a lot of different types of businesses, some are restaurants, some are retail businesses, each requiring different types of goods.
So if you decide you want to distribute to restaurants you can offer produce items like tomatoes, peppers, and potatoes, if you are selling to retail businesses you can offer paper products like shopping bags, coffee cups, and brown bags. So the choice is yours.
Step 2: Finding a supplier
You found what you want to sell, this may be because you know a lot of people in that industry and this will help you get more clients, we have the business idea but now you need to research suppliers.
As an independent distributor, it’s most likely you won't start with a warehouse to store inventory because it will take a lot of overhead and money, you gonna want to find a supplier with a large wholesale and buy from them directly.
Picking and choosing suppliers can be daunting and you may bump heads with them but the good part is you don't have to stick with just one, take for example you are selling paper products. One wholesaler has them for a better price than the other place where you buy your plastic bags, you can buy certain stuff from one place and other items from the other wholesalers.
Step 3:Getting licensed
Now that you've figured out what you want to sell and where you will buy from you can get down to business, as an independent distributor you can't just walk into a wholesale buy good and sell them out of your trunk! You will still need to be fully licensed.
First start with choosing a name for your business, second corporate your business, and third but not least contact your state office and see if you are required any additional permits or licenses to distribute.
Step 4:Picking a vehicle
This will be your biggest investment, choosing a vehicle for your distribution all comes down to what you are selling. Let's look at three examples below…
Produce business: selling produce requires a vehicle that is equipped with a built-in fridge, operating a vehicle without one can result in some hefty fines.
Cake distribution: selling items like snack items to small businesses will require a step van, which helps organize your inventory, in the cake distribution most of the time you stock your van and sell out of it.
Beverage distribution: selling sodas and juices requires either a cargo van or a box truck, and the reason is you are selling in cases. one account order can be anywhere from 15-20 cases so you need a strong vehicle that can hold the weight.
Now that we went over the steps on how to become an independent distributor the choice is now yours, will you start or find a distribution business for sale?
To the best of our knowledge, the information provided on this website is not intended to be taken as professional financial advice. Consult a professional financial or tax expert if you require this advice.