7 Smart Tips to Start Your Distribution Business

Virtually anybody can start a distribution business – however, you would need to have a bit of passion and drive to ensure that your distribution business thrives and eventually becomes successful. Generally, distributors purchase products directly from the manufacturer before selling them to others – hence, they are commonly regarded as middlemen. Below are a few tips to help your distribution business grow

1. Decide on a product for distribution

This is by far the most critical part of your distribution business. Ideally, you want to do your research here and pick a product that is sure to do well on the market. Apart from sourcing for a product, you would also have to ensure that you have a reliable company to always buy these products from when you need to restock. 

2. Get in touch with a company that supplies what you sell

Once you have successfully settled on a product you would like to officially distribute; you need to now ensure that you find a reliable shipping policy/company that is effective and yet affordable.

Ideally, you want your products to get to you as quick and as safe as they can. A good shipping policy can be the blood vessel of your distribution chain.

3. Settle for a company name

While this may seem trivial, it is indeed vital. Ideally, you can pick a simple company name such as your initials followed by the word “Distributors”. Although, it is important that you choose a company name that commands respect and depicts real professionalism.

Also, you can get in touch with businesses near you that sell items that you wish to distribute. The goal here is to speak to whoever is in charge of purchases and convince them as to why they should use your distribution services.

4. Keep in touch with the market

Consumer taste can change very quickly, and it is essential to be one step ahead of current market trends and consumer choices. Failure to keep in touch with current consumer choices on the market can cause severe damages to your corporate strategy and can even bring your entire distribution business to its knees.

Therefore, identify the items that people want and how much they are willing to pay for them. This will go along way in defining your distribution strategy.

5. Building good relationships is vital

Good relationships are essential to a distributor-consumer transaction. Distributors only help to close the gap between manufacturers and the final consumers. Therefore it is necessary for you to build and foster positive relationships with consumers and retailers within the supply chain.

Here the goal is not necessarily to crash the prices of your products to outsell your competition; instead, seek to build strong relationships that are established on mutual trust and understanding that can turn out to be priceless.

6. Stay on top of your credit

Distributors play the role of linking manufacturers and consumers and getting stuck between the value chain has its own advantages too. As a distributor, the onus lies on you to make the connection works seamlessly, by taking the producers product to the market and helping customers have access to them easily.

However, in the process, ensure that you are not overly providing credit extension to customers.

This can happen where a customer demands an increase of their credit limit while your manufacturer is also seeking for the payment of products supplied to you. Adopting strict and healthy credit check references, in addition to explicitly explaining your terms of credit and payments to new customers and setting a credit limit can help you avoid this dilemma.

7. Leverage on technology

Businesses are getting smarter, and if you refuse to move with the trend and embrace modern technology, your competition will eventually drive you out of business. Because every business is different, you would need to come up with a unique strategy to dominate your target market. Usually, different markets will require a different approach and level of technological input to grow.

However, as a distributor, it is essential to keep track of your inventory, order processing, keep track of your accounting and provide a flexible payment plan to facilitate transactions between you and your customers. Which is why a comprehensive order management software like the EMERGE App is instrumental to the success of any distribution business. The ease at which Emerge can manage your business workflow from sales to delivery and keep track of product location is crucial to any distribution business.

Building healthy relationships is crucial to the success of any business, especially one that involves you bridging the gap between the manufacturer and the final consumer. In addition, adopting some of the best technology in combination with being on top of market trends, can send your distribution business to the top in no distant time.

Banish Money Mistakes with a Daily Finance Routine

Knowing your financial state on any given day can help you stay calm when large financial expenses appear out of nowhere. And unexpected costs do have a way of cropping up at the most inconvenient times.

Even if you have several forms of insurance, getting a payout can be challenging at best and turned down by insurance companies at worst.

According to West Coast Trial Lawyers, “Despite their advertisements, insurance companies are in the business of making money, not helping people. When tragedy strikes, and you need them the most, most insurance companies will avoid paying your claim even though they know it’s valid. When a claim is too expensive, your insurance company may delay, undervalue, or even deny your claim outright, hoping that you’ll just give up.”

Want to be financially prepared for anything? Enter the power of a daily money routine.

Routines: The not-so-secret secret to a better day

Routines have long been the secret power of top performers. Tony Robbins has a 3-part morning routine that he does daily without fail. Oprah Winfrey starts her day with 20 minutes of meditation, followed by exercise, music, and a hearty meal. Steve Jobs admitted he had one question he asked himself at the start of each day.

At the heart of a good routine is the truth that we are bad at doing what we say we’re going to do. Routines put our good intentions and worthy habits into our daily schedules.

Stick with a routine, and it will become an effortless part of what you do every day.

What to include in a daily money routine

Having a daily money routine does not need to take an hour-long to complete. It can be tailored to the main areas of your spending and your earning. Some days you might decide to devote more time or less, depending on the tasks you need to complete. But here are the essentials to cover.

Check your inbox or the mail for any bills that have come in and pay them immediately. Do you only remember to pay your bills after the second late-payment notice? Or what about setting aside that percentage of your monthly income for your savings?

Yes, payments can be automated. But there are some that you might have decided you wanted or needed to do manually. Even for automatic payments, make sure the payment has gone through. And that there is enough balance in your checking account for the withdrawal.

Check your savings accounts. Thought that you were doing well at putting money aside? You might be under a misconception. A GoBankingRates survey found that over half of Americans have less than $1,000 in their savings account. What about you? Do you know exactly how much you have in savings? Sometimes a daily reminder is all it takes to help curb impulse spending and keep you pushing toward your financial goals.

Make sure you are within your budget allowance for daily expenses. Before you step outside of the house and are tempted by takeout coffee and quick bites to eat on the way to and from work… Evaluate how much money you can safely spend in order to stay within what you’ve budgeted for daily expenses for the month.

Log expenses. After you come home from work, log your expenses for the day. So you know how much you can safely spend the rest of the week and month without jeopardizing your budget.

Read 1 finance article a day. Reading about financial topics will grow your knowledge on financial matters. Which will lead to better decisions.

Set your financial intention for the day. Do one thing for your financial state today that will pay off in stability in your future. It could mean deciding to exercise instead of watching TV (or watch TV while exercising). The healthier you are, the fewer doctor bills you will need to pay. Or it could mean researching and reading a prospectus for a fund you are considering investing in. Or it could be having a no-spend day, where you pack a lunch from home instead of eating out. Choose one intention, and follow through.

Ultimately, your daily finance routine can help you stay on the right path in your journey toward independence. It will help you grow your knowledge on topics that might have seemed too difficult for you to grasp. Andit can lead to what you want most: Financial stability for life.

5 Compliance Measures Every Business Should Take

Every single industry and every business has certain things they must comply to. These include legal requirements, regulations that must be followed, and voluntary compliance with industry and employer norms.

There are different consequences when it comes to non-compliance depending on what specifically we are talking about. When it comes to government regulation, these can often be disastrous, and we will talk more about those in a moment. Below are five compliance measures every business should take.

Internal Operations Compliance

What is internal operations compliance? There are some requirements of corporations like forming a board of directors and having annual meetings. Smaller companies like LLCs simply have to file annual reports and have less stringent regulations.

Then there are your internal compliance rules that you establish.These are essentially your rules for doing business on a day to day basis. They include a number of things.

Here are some examples of internal rules you should consider:

  • Physical Entrance Rules: When can employees come and go, and who has access when and where? These should all be clearly outlined in a policy document.
  • Virtual Access: Similar to an entrance policy, this tells your employees who can access what data from where, how, and using what equipment.
  • Password Protection: What are your password requirements, and how often do employees have to change them?
  • Security Updates: How often do security updates need to be done? Are they done by IT or do employees have permission to initiate them on company equipment?
  • Media Removal/Addition: When can media be removed or added to the company systems, by whom, and when is it appropriate?
  • Audits and Reviews: How often will audits and reviews be done, and what will they look like?

These items should all be clearly defined so that employees know what to expect and what is expected of them.

External Government Regulation Requirements

Of course, there are government requirements of your business, and many of them are related to HR and payroll. From overtime laws, which can vary from state to state, minimum wages, break policies, and more, there are regulations that govern how you treat employees and the benefits you offer them.

On top of that every business must deal with tax laws, both Federal and local laws which can include city, county, and state regulations. Many businesses choose to deal with these by outsourcing HR services to a professional employer organization or PEO. What is a PEO? A service that can offer professional employer tasks such as payroll and compliance.

The best PEO companies handle legal, payroll, benefit, and other requirements for a number of companies and corporations. These are options to consider as your company grows and dealing with these regulations becomes more than you can handle on your own.

Industry Specific Requirements

From factories to mines, each industry has specific requirements they must deal with. From OSHA and MSHA to the EPA and other environmental regulations, industries must deal with a number of compliance issues on a daily basis.

The key is to know the requirements for your business, and to follow them. Most agencies want you to be successful in compliance and they offer primers and courses that will help you follow the specific requirements for your industry. If you have questions, check with the regulating agency or a compliance expert.

Voluntary Employer Compliance

While some things are not requirements for your business per se, they are expected by employees, customers and others. For instance, you may not be required legally to offer certain benefits, but employees in you industry may expect them as they are “normal” for businesses of your type.

For instance, restaurants often offer food discounts to employees. While this is not a legal requirement, it is pretty much expected. Many office type jobs offer gym memberships to help employees stay active. While not a requirement, it is something employees have come to expect an employer to provide.

In other cases, customers expect businesses to be environmentally conscious and engage in recycling and energy conservation efforts. Using or paying into renewable energy and other responsible tactics are not only desirable, but almost compelled. Not participating in these things can drive your customers toward your competition.

Understand Consequences for Non-Compliance

There should be consequences attached to non-compliance with internal regulations, as they are related to the smooth everyday operations of your business. These can include written warnings and range up to dismissal for cause. Whatever structure you choose should be written in policies provided to the employee.

Government compliance comes with penalties at the state and Federal level, and can be small and inconsequential or disastrous for a small business. As mentioned above, tax penalties or violations of payroll compliance issues like overtime and labor regulations can easily bankrupt a smaller company.

Voluntary compliance violations can result in huge amounts of recidivism, lost employment prospects, lost sales, and lower profits. Sometimes what is expected of your business is just as important if not more so than what is required of your business.

As with any endeavor, compliance with laws and expectations is vital to the success of nearly any business. These are just five of the many compliance measures a company should have in place. Find out what your industry demands, and be sure you are in line with both what you need to do and what you are expected to follow.

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