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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

 

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Small guide on how to start your own family business

Home » Business Model » Small guide on how to start your own family business
July 19, 2017 Frank Bullock Business Model
Starting a small family business has never been easy. But by taking a close look at other’s recipe for success might teach you some important lessons. For instance, that having a family business, you can hire most members of your family, provide them reliable jobs and also help your business grow in a healthy and sustainable way. However, let’s see what lessons others learned in the process of establishing their own businesses, and how could you make them work to your advantage.

Work with a dedicated company to help you with the paperwork

If you want to Starte AS, then you must know that the process involves plenty of complicated steps. Managing by yourself the entire process, like others did, might lead to increased levels of frustration and probably way too much paperwork. If you want a job done right and in an efficient fashion, make sure to collaborate with a dedicated company that will handle the entire process of establishing an enterprise with limited responsibility. Moreover, the employees there will offer their consultancy services for making sure that you pick the right type of financial establishment. Depending on the type of activity that you will be doing, on the number of employees that you’ll have and on the level of liability of your future enterprise, these companies can offer their best advice for your particular case.

Find a great location for your business

A great location will practically sell your products. This is why this is such an important step in Starte enkeltmannsforetak. Make sure that you take into account the activity profile, because if you activate in one of the heavy industries, chances are that you won’t be allowed to activate in the downtown areas of your city. However, if you target a business in the service industry, or even a shop, a well-located establishment will certainly help you to increase your chances of development on the market. Make sure to make your headquarters visible from distance. Also, make sure to pick a location where public transportation is accessible. This will make the difference for those who don’t have a personal car.

Pick the right partners

The success of your business depends not only on yourself, but also on your partners. Make sure to collaborate with reliable enterprises that will offer the best services they can. This way, you will also be able to give your best when it comes to your business and relationships. Make sure to pick local partners, because it is easier to collaborate with them. Also, the fact that they are trying to consolidate their businesses as well, will make them more likely to offer great services and products.

These are three important pieces of advice you must follow if you want to start your own small family-run business. Always collaborate with a dedicated company when it comes to the paperwork involved in establishing a business, and always take into account their advice.

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