The Winning AdVantage eZine

The Winning AdVantage is devoted to helping its subscribers develop their marketing skills and promote their Internet businesses and opportunities. This periodic publication features tips and how-to articles about such topics as ad copy writing, finding good free or inexpensive places to post ads, and other issues related to making money on the Internet.

Friday, March 17, 2006

Achieving Wholesale Success: 10 Tips For Getting Started

Work At Home And Make As Much Money As You Want!
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THE WINNING ADVANTAGE eZINE
Friday, March 17, 2006
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The Winning AdVantage eZine is dedicated to your Home-based Internet Marketing Business Success.
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Published by Earl Savage
ES World Marketing
http://www.esworldmarketing.com/blog/ezine/
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In This Issue:
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1. Message from the Editor

2. Feature Article - "Achieving Wholesale Success: 10 Tips For Getting Started"
by Joaquin Reveron

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Dear Reader,

Thanks and WELCOME!

As always, I hope you'll enjoy and profit from reading "The Winning AdVantage".
Please feel free to post your comments at the bottom of this blog post. I am here
to help and welcome any help or advice you may offer.

Wishing you success,
Earl Savage, Publisher
The Winning AdVantage eZine
winning@esworldmarketing.com

P.S. If you like this ezine, please forward it to your friends, downline, upline, etc.
If you have ideas for improving it, please let me know. I'd love to hear from you.

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=>> Feature Article
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Achieving Wholesale Success: 10 Tips For Getting Started
by Joaquin Reveron


Whether you are just thinking about, or you have decided that
you would like to start running a wholesale business, there are
a number of items that you should spend considerable time
planning and researching before going full steam ahead. Proper
planning and fact-finding up-front can not only save you from a
lot of headaches in the beginning, but can also mean the
difference between a successful wholesale business versus a
monetary disaster waiting to happen.

In this article we will provide you with ten tips to help guide
you along the way as you begin planning for your business. They
are presented in chronological order so that you can use them
as a way to plan out the proper steps along the way. Remember,
success depends on many factors - and the most important factor
is your determination and energy you put into making your
business a success!

Step 1: Ask Yourself Why?

Why do you want to get into the wholesaling business? It is
because you would enjoy working with other businesses and
manufacturers being the main point of contact between the two?
Or is it because you think it is an easy way to make money
quick?

Wholesaling is a demanding business, and can require lots of
up-front capital, warehousing, logistics planning and customer
service skills. As the main channel between the manufacturer
and retailers you may find yourself dealing with hundreds of
thousands of units of merchandise needing to be shipped across
the country on a moments notice. Large retailers often pay on a
Net-10 or Net-30 schedule, meaning payment is made after the
goods are delivered. What would you do if a retailer did not
pay or went bankrupt before you received payment?

Step 2: Study Your Competition

It does no good to enter a market where there already exist
established, credible wholesalers for a given product.
Retailers want to know they have a dependable supply source
that meets their terms and often will not change wholesalers
for an established product. Just because you build the
warehouse does not mean they will come.

Use your local Chamber of Commerce, the Internet and even visit
with retailers to find out what wholesalers exist in your area.
If you want to specialize in a specific product, contact the
manufacturer directly to find out who handles wholesaling for
them already in your region. There may be none in your state,
or there could be three down the street.

Step 3: Assess your Financial Situation

Wholesaling can require a lot of up-front capital and
expenditures before you even see one cent of income. Do you
have the resources to spend on setting up a relationship with a
manufacturer who will most likely require you to buy in huge
quantities from them? Can you afford to wait up to 30 days for
payment? Do you have the money to invest in shipping freight or
setting up your own delivery service?

Be sure to look past the startup costs as well. Employees,
taxes, property rental and insurance are just a few of the
things you will need to factor in as ongoing costs.

Step 4: The Business Plan

A solid business plan is the foundation of any business. You
need to make sure that you have spelled out what you intend to
do and how you intend to get it done. Not only will banks
require this for financing, but often other businesses you deal
with will want to see it as well. It should be the guidelines
that you follow every day in your business to achieve the goals
you have set forth.

For this part, it is often wise to work with a business lawyer
or seek professional advice from business consulting services.
A good resource to help you find people in your area with the
necessary skills and background is the Small Business
Administration, located on the web at http://www.sba.gov.

Step 5: Apply for Licenses, Taxing Certificates and Other
Necessary Paperwork

Nothing is as certain as death and taxes. It is no different in
business, with one exception. As a wholesaler you will be
required to pay taxes and other fees to your state and to the
federal government.

The one exception is that you will be granted tax-exempt status
for the actual goods you are moving between the manufacturer and
other retailers. This can be a tricky process and is handled at
the state level.

Again, for this part you will want to make extensive use of
your state taxing authority as well as local Chambers of
Commerce. One wrong mistake here can end up costing you not
only money, but possible your entire business.

Step 6: Establish Your Facilities

Location, location, location. Businesses must exist somewhere
and like most things in life there are rules and regulations on
where they can be. Will you be having semi-trailers coming to
your location at all hours of the day and night? Will you have
a storefront for vendors and clients to come calling at? What
about electrical, water and sewage needs?

Zoning laws exist to make sure that the right structures end up
in the right places. Nobody wants a warehouse next door to them
in a residential neighborhood. Work with commercial real-estate
agencies to find a suitable place for your business.

Step 7: Establish Your Relationships
You have the facilities, you have the financials - now do you
have anyone supplying you product or customers for that
product? Work with manufacturers and retailers to build a
relationship. This can be one of the most difficult parts of
the experience, and is where the rubber hits the road.

In addition, relationships extend beyond your customers and
suppliers. It is good practice to establish relations with your
local Chamber of Commerce, retail associations and labor
organizations in your area.

Step 8: Marketing

Wholesalers traditionally don't advertise. That doesn't mean
you shouldn't market your business to others, after all how can
you build relationships or expand on existing ones? Wholesaling
guides are published and distributed to many retailers and this
is where the bulk of your marketing efforts will be directed.
The other half should be in going to retailers directly,
meeting with buyers and outlining your services. Just because
you have a customer today does not mean you can rest on your
laurels.

Marketing works hand in hand with building a relationship and
maintaining it.

Step 9: The Machine in Motion: Servicing Your Customers

Product is coming in, retailers are placing orders - we're all
done right? Not exactly. Getting the product to your customers,
answering questions about delivery timelines, working with
vendors to obtain new product lines, it is a complex and
demanding part of the business.

In today's "just in time" marketing model a delay in shipment
could mean the end to a business relationship. You must keep
your customers informed of any status changes, pricing concerns
and product movements from your facility to their loading dock.
This is where backend systems come into play by maintaining
records and logs of all activity with that customer. Do not
underestimate the value of a good Customer Relationship
Management system (CRM).

Step 10: Employees, Accounts Receivable and Other Financial
Matters

Once everything is up and running your next focus is your
business financials. Employees need to be hired and fired.
Payroll needs to be met. Money must come in, and money must go
out. Here you should invest in financial talent and services if
you do not possess them already.

One oversight can mean the loss of hundreds of thousands of
dollars; a missed payroll deadline could mean your entire
business comes to a halt. It is critical that you constantly
keep an eye on the books and on your expenditures. Know when to
tighten the belt, and know when to expand.


About The Author: Joaquin Reveron is the President of Video
Games Mystery Corp. Trainer and wholesale marketing consultant
for online and offline purchases. A Wholesale Distributor is
one of the topics discussed at http://www.videogamesmystery.com

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That's all for this time - thanks for reading!

To contact us, go to: http://www.esworldmarketing.com/contactus.html

Your success is our success!
(c) 2001-2005 ES World Marketing

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=>> OUR MISSION
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We, at The Winning AdVantage, are devoted to helping our subscribers
develop their marketing skills and promote their home-based Internet
marketing businesses and affiliate opportunities. This publication
features tips, techniques and how-to articles on such topics as ad copy
writing, finding good FRËË or inexpensive places to post ads, finding the
best available resources, and other issues related to making money on
the Internet. The Winning AdVantage eZine is dedicated to the
enhancement of your home-based Internet marketing business success.

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Copyright 2001-2005 The Winning AdVantage Ezine All rights reserved
The Winning AdVantage is a publication of ES World Marketing.
PO Box 361347
Decatur, GA 30036 USA
877-837-0195

posted by The Winning AdVantage eZine at 3/17/2006 12:58:00 PM

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