Sales channels to reach your customers
Selling through retailers, wholesalers and other distributors
Selling through an intermediary may be a more cost-effective way of reaching your end-customers than selling to them directly.
If you are targeting business customers who prefer to deal with large suppliers, selling directly to them may not be a realistic option. Instead, you might aim to supply wholesalers who have existing relationships with those businesses.
If individual consumers buy low value quantities of your products, the best option might be to target retailers that sell similar products. Or you might choose to focus your efforts on a relatively small number of wholesalers who can in turn supply your products to many retailers.
Other distribution channels may also reach your end-customers. For example, technology suppliers often sell to resellers who can configure and install the technology to suit end-users’ particular needs.
Managing your distributors
You need distributors who will value your product. If they sell competing products, what will make them push yours?
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Think about how you set your prices. Distributors will be more enthusiastic if they can make a large profit – but setting too low a price will eat into your own margins.
Effective advertising and promotions can be vital. As well as marketing to the distributor, you can promote your products directly to end-customers. Distributors will be keener to stock and sell products that their customers are asking for.
The key terms of the supply relationship should be covered in a written contract. Key issues might include:
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how much stock the distributor will hold
what the distributor will do to promote your products
how quickly you can resupply and minimum order levels
whether the distributor has exclusive rights to your product (for example, in a particular territory)
what happens if either you or the distributor want to end the relationship
Business ideas, Marketing and sales , promotions and advertising ideas , articles
Small Business Ideas
Many potential entrepreneurs have difficulty deciding on their list of small business ideas. They either have too many small business ideas or too few. If you are going through this guide in order and not skipping any steps, you should at this point have prepared yourself to become your own boss. In Step 3 you should have at least determined what factors are important for you in deciding what business you want to start. In Step 4 you decided whether working from home is right for you and in Step 5 you decided whether buying a franchise was right for you.
The approach we are taking is the same as a shopper deciding what he wants to buy and then going to the mall to get it, as opposed to wandering the mall aimlessly wondering what present he could possibly get for his wife this year.
If you are still looking for inspiration for your small business ideas, read about and then watch a video giving you four business principles to look for when deciding on a business idea.
Here are some more ways of thinking about the personal and business goals you thought about in Step 3, Your Goals. Go through them carefully to come up with a list of small business ideas. As you come up with your list of small business ideas remember this philosophy which bears repeating:
Business is not about tricks, win-lose deals, and dishonesty. Its about action, persistence, patience, honesty, faith and hard work. Business is about creating long-term relationships; its about making those relationships WIN-WIN. Business is about creating value in the world and being compensated because you have made peoples lives better. Business is about getting what you want by giving people what they want or need.
Follow your passion
What do you enjoy doing in life? What are your hobbies and interests? Do you enjoy dealing with people or are you happier working on your computer? Dont be afraid of sales. Every person has to sell, even if they are selling themselves. Whats important in your life?
Follow the money
What large need can you fill? What niche can you occupy? Be a specialist, not a generalist. Consider what people will still want or need during a recession. In fact, think of what people need more of during a recession. How about helping people create larger incomes or helping people save money?
Dont try to fight big companies unless you have a big competitive advantage they wont be able to overcome with lower prices
You will never be able to compete with the big companies on the issue of price. You will be able to win on the issue of service.
Consider the trends
Can you fill a growing need? Remember that business is about making peoples lives better in some way. Think of solving a problem for people, filling a need, or satisfying a want. Determine your unique value proposition.
Establish repeatable business systems
The more predictable, repeatable and reliable your business activities are, the more efficient you become. By studying, streamlining and then documenting a systemized approach to customer service, financial management, team communication, marketing, etc., youll be able to free your mind of the procedural aspects of your business and focus more time on creative and innovative ways to be valuable to your customers.
Special for the Work at Home Mom
If you are a stay-at-home mom looking for a business, theres a great business resource full of small business ideas just for you. Go to the Work At Home Mom page now.
List of Small Business Ideas that May Work for You
If you are still looking for a business, there are lists of low-cost business ideas that may spark an interest. Here are some resources I like:
If You Still Dont Have Your Small Business Idea
If you still havent come up with your list of small business ideas, buy a blank book. Start out by writing out what you want in your life and how your business can be in harmony with that. Carry your book around with you and write your thoughts, aspirations and insights. Reflect on journal entries to learn from the past. Use your journal to slow down your thinking and gain a new perspective. The best collecting place for all of the ideas and information that come your way is your journal.
Your First Financial Tool Break-Even Analysis
If you have your idea, its time to use your first financial tool to test whether the idea will produce an acceptable profit.
Use the Break-Even Analysis tool to see whether you project your business idea to produce a profit.
You Now Know
Many people who want to start their own businesses have difficulty coming up with a viable list of small business ideas. You now know:
That the best ideas are those that meet your goals.
How to establish a framework of goals to test your list of small business ideas. You have a list of goals I used to help you come up with a goal sheet.
That you can look at my business model and how that model achieves my goals.
Lists of various sources to help you find your idea.
A financial toolthe break-even analysiswhich can help you determine whether your idea is viable.
