Overview and Steps
A distribution company acts as a bridge between manufacturers that produce goods and the retailers that sell them. To start a distribution company, follow these key steps:
- Research the market. Identify potential products to distribute as well as target customers and competitors.
- Create a business plan. Outline your company’s vision, startup costs, operations, and projections.
- Secure funding and financing. Determine startup and operating costs then obtain necessary funding through loans, investors, etc.
- Set up business operations. Establish your company legally, acquire warehouse space, hire staff, implement inventory systems and software, etc.
- Market your services. Promote your distribution offerings to manufacturers and retailers.
Profitability and Strategies
With the right preparation and execution, a wholesale distribution business can be highly rewarding though competitive. Adaptability and efficient operations are key to continued success. Conduct in-depth planning and be strategic when launching your distribution company.