- 1). Identify the tool products you want to sell, your target sales markets, and potential suppliers.
- 2). Find tool suppliers. Develop a list of product manufacturers and wholesale distributors.
Visit local retail tool shops and examine inventory. If a certain manufacturer's tool line is already available in the market, find competing manufacturers whose quality or pricing may be better.
Join organizations such as the National Association of Wholesaler-Distributors to network and gain information. - 3). Write a business plan, which will outline your target market, product manufacturers, wholesale product costs, and warehousing needs.
Even if you think you know all these things, putting it on paper makes it easier to implement. - 4). Create a budget. List your costs, and what you expect to make for profit. Cut start-up expenses by using a residential garage or storage facility to store your inventory.
- 5). Market to local retailers. Develop a list of your products and provide samples. Contact purchasing and procurement departments to request a meeting to discuss their needs and your products. Be prepared to address retailer's request for business credit terms. Thirty and 60-day net credit terms are typical in distributor-retailer transactions.
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