To start a wholesale business, choose the type of wholesale business to start, identify an industry, obtain permits, purchase inventory and promote the business. A wholesale business can be a secondary source of income or a full time business.
There are different types of wholesale businesses including merchant, specialty, general and specific product wholesalers. Wholesalers purchase stock directly from manufacturers and sell on to distributors, retailers and resellers at a profit.
Next, identify the industry to work in. Knowing about manufacturers, products and retailers can help to improve the chances of success. Consider a market that is not too competitive or over saturated, and find out about product information, pricing and terms before venturing into a new industry.
Obtain the permits required to run a wholesale business in your area. Permits may include sales and use tax permit, factious name certificate and resale permit.
Buy or lease a warehouse facility to store inventory. Choose a temperature controlled and food-safe warehouse when dealing in food products. A loading dock at the facility may add to the price of the premises.
Purchase inventory from manufacturers or wholesale distributors, and insist on a distributor’s discount when buying directly from the manufacturer. The distributor’s discount can be up to 80 percent off of the retail price.
Lastly, create a professional business website to promote the business. Join a professional network in the wholesale industry to learn more about the business and to make essential business connections.