subject: Questions you must ask yourself before setting up a wholesale business [print this page] Questions you must ask yourself before setting up a wholesale business
Introspection is better than retrospection and that is why thoroughly scrutinizing your business plan before you actually start working on the strategy is a must, even if you are in totally high-spirits and questioning the plan sounds like an off putting activity. Following are the four most important questions that you must ask yourself before starting a wholesale business as an entrepreneur. Finding answers to all these questions could be really helpful for having a successful wholesale business.
Product selection Is the demand really there?
This one is rather obvious and most people will bear this in mind while making the decision regarding product. Ask yourself, if the productyou are about to start wholesaling is really in demand, in your area and do you have a reliable wholesale supplier to meet that demand? You must be able to answer this question with the help of facts and figures and not just your gut feeling. Pay attention to the last part of the question, which is the presence of demand in the region where your wholesale business will be located.
Capital Do you have enough of it?
Do not start until you have made sufficient arrangements for the funds. Getting into the business with insufficient capital or unsteady source of finance will result in stressful situations, ending in loss of whatsoever capital you had. Remember that it's better to postpone the start altogether as compared to making a financially weak attempt.
Business acumen Do you think you are capable of pulling it off?
Wholesale business is all about buying at low prices and selling at a profit but to achieve this seemingly straightforward goal, you need to have some business acumen and sharp mathematics skills. Business acumen includes (but is not limited to) an insight in the wholesale business, good judgment when it comes to forecasting trends, and the art of negotiation. You need to have all of these skills in your armor to be able to successfully tackle the challenges.
Marketing plan Do you have a backup?
You can never be a hundred percent sure of the marketing plan, no matter how successful your previous campaigns have been. Problem is that nobody can predict the customer's response, with utmost certainty. Being a wholesaler or distributor, you should be having a backup (and also an exit plan) in case your primary plan falls short of your expectations. By having an all around marketing plan, you'll be able to react in good time in case the initial plan doesn't go as planned.
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