Key to a successful wholesale business- planning and research

The most important thing is to be absolutely sure that you are doing something that you truly want to do. To know this for sure you have to ask yourself a simple question, why do you want to do it? Is it because you would like working with other manufacturers and dealers? Or is it because you think it is an easy way to mint money?

Wholesale business like any other business is very demanding. It requires that you put in a lot of effort and also a great amount of up front capital. It requires that you have great customer skills and adequate knowledge about warehousing and logistic planning. You will be playing a role of a mediator between the suppliers and the retailers. You will have to ship tons of goods across the country at a moment notices, it is important that you do not lose your nerve in such situations. It is also important to know that the payment that you will receive from the retailers will be on a Net10 or a Net 30 basis, often the retailers will pay you after the goods have been delivered, but what if after the goods are delivered the retailer refuse to pay? Or he goes bankrupt? You can face these situations once you plunge in to the business. So it is very important that you take all the precautions and you are prepared to meet the consequence.

It is important for you to assess the degree of competition before plunging in this field. If there are reliable wholesalers in the locality the retailers would not want to shift from their regular supply for a new wholesaler. It is prudent to do certain research through the internet and also through the retailer themselves and find out if there is scope for your business to flourish.

You should assess your financial status before taking any step further. Wholesale business requires that you buy goods in large quantity from the wholesalers. It also means that you have to sell to the retailers on credit as they will be paying you after 30 days of receipt of goods. You have to invest a lot of money in insuring the goods and also in the shipping and transport of goods.

You need a secure business plan to ensure that your business is a success. You should have a clear plan of what you want to do and how you want to go about doing it. This will not only be beneficial for you but it is also a requirement for the banks in order to sanction the loan that is proposed by you. It is also advisable that you take the help of a business lawyer from whom you can take professional advice.

Lastly it is important that you apply for license, taxing certificates and complete other paper works. Paying taxes is a certainty and it is no time deferring it. You should start planning for your tax payment to the state and the federal government and for this there is a lot of paper work that you must do.

Online payment processors

There are two ways in which you can set up an online merchant account. In the first method, you can have a third party online merchant account that will accept the online payment on your behalf. In this case you have to pay a certain amount as fees for the service that they provide. In case you are just starting off a venture and are not sure of the success and the longevity of the business, then it is a good idea to go in for a third party online merchant account. This way you don’t have to worry about the payment aspect of the business. All you need is to check the payment at the end of the month and you can easily devote all your time in the betterment of your product.

You can also try out opening your own merchant account. To do this you will need a bank that will allow you to open a merchant account. There are a few requirements that you have to meet in order to ensure that you get to open a merchant account. The requirements that have to be met are that you should have a high rate of fixed income, you should have well rated credit worthiness and you must have a well established bank account. For new companies that do not have a very good credit history, there are ways in which they can get a merchant account. The new companies can take the help of other reputable payment processing companies; these payment processing companies have a tie up with reputable banks that provide merchant account facilities.

It is important that you check and compare fees before deciding upon anything. The fees that you should compare are as follows.

1. Transaction fees: Transaction fee is a fixed charge that is charged for every online transaction. In case you are selling products in which your margin for profit is quite substantial, then the transaction fee loses its significance.

2. Discount rates: Discount charge is a flat percentage charge that is imposed on you for each and every online sale that you make.

3. Charge back rates and rolling reserve: These rates are associated with fraudulent transactions and repudiated purchases.

In case you are in a hurry to start off your business and are not in a position to get a merchant account, then you can try out credit card payment services such as Pay Mate and Pay Pal. In this case you will not have to pay any monthly overheads, the process is entirely hassling free and you can set up your account without cost in a few minutes. The only draw back in this case is that unlike in merchant account, where the customer sees your business name in their credit card statement, they will see the name of Pay Pal or Pay Mate in case the payment is made through them. This may cause confusion in the minds of the buyer as they might not be able to identify the source from where they have shopped.

Effective way to Manage your Time

The number of goals that any individual accomplishes depends solely on the way in which one chooses to utilize one’s time. The concept of how to use time differs for different people. According to their priorities, they choose to do certain things over others. That is not to say that everyone prioritizes their life’s duties in the right manner. This is why so many people find themselves unable to complete tasks that they have been striving to complete for long periods of time.

Time management requires proper planning. There are several areas that need work. There are several duties that one needs to perform on a day to day basis. To accurately prioritize these duties and then to allot them time spans requires some organization. The following are some of the things you may want to consider before drawing up a time table of a schedule:

• Aims and Objectives: It is important to determine what the activities that need to be done are and the amount of time you have. But it is more important to determine your objective and rationale for doing those things. There are several activities we continue to do out of habit, which do not bear any fruitful results, but waste a lot of time. These need to be identified and eliminated.

• Time Management Tools: A proper idea of your goals needs to be clear in your head. External tools can only help to enhance that focus. Get hold of diaries, planers and reminders to help you keep a track of the activities that you had planned. This helps you to follow the schedule better.

• Consistency: Be consistent with your work. Once you let lethargy creep into your daily schedule, it will be difficult to get rid of it. Do your day to day job on time. Don’t let jobs spill into other time slot. Clear backlog regularly.

• Energy: This aspect has a lot to do with your biological needs. Some people are inherently energetic and feel fresh with a short nap because they get a deep and peaceful sleep. Others are light sleepers so short hours of sleep do not help rejuvenate them. It is important to identify the kind of rest you need. Determine the energy patter cycle. Also find out the time of the day when your concentration is at maximum. Work around that time, and take adequate rest. Try not to feel stressed. And find out ways to relax.

• Organization: This involves both mental and physical organization. Be clear in your head about what jobs you have to finish and be mentally prepared for them. Also keep your work space and living area clutter free. Clutter and mess have adverse impact on concentration. Simple things like putting things back from where you pulled them out will save you from the trouble of clearing the mess later. It will also help you find those things again easily.

The Necessity of having a Business Plan

The importance of having a good business plan can never be underestimated. In some sense it truly reflects your own goals and objectives as the owner of the business. It gives an impression of a very well researched and well planned business. The business plan represents the aims and ambitions that your business would seek to achieve over a stipulated period of time. Therefore, it is very important that you draw up an impressive business plan, no matter how big or how small your business may be.

These are some of the things you may want to include in your business plan. Feel free to add whatever else you may wish to:

• goals of the company

• the time period over which these goals will be met with

• the nature of the product or services that your business will offer

• the segment of the population whom these products and services will benefit

• any other data that you find will attract clients, customers and employees

While you write out your business plan, be positive in your outlook. It is important to convey to you clients and customers and even your employees that you have started your business with a positive approach. This will enable them to place confidence in your organization.

Generally, business plans are roughly divided into three neat and clear cut categories. Let us look at each of them individually:

• Business Concept is where you discuss about the nature of your organization and the kind of products and services that you will strive to offer,

• Market Place Selection is where you talk about the target customers and talk about who will benefit from your business. You can also mention here your reasons for selecting such a product over others you had in mind.

• Financial Section is where you may require hard data about income, revenue, financial ratios, etc to help strengthen your creditability.

There is no ‘ideal length’ as such regarding how long your business plan must be but typically it is kept up to 20 pages. But the length may vary according to what you have to say. For people brimming with ideas, if they think they can hold the attention of readers, they may include other important things. Otherwise it is pointless to go on if you are unable to hold the attention. Write it simply.
Planning the business plan is also an important job. Ask yourself:

• What do you want to talk about in the plan? Outline your business goals according to time period – long term and short term.

• How do you want to go about it? Talk about your advertising and marketing strategies briefly. Also mention if you plan to employ and train more people to help you achieve those goals. Talk of the infrastructural backing that you have.

• What are the factors that will benefit this plan? New strategies and policies that you plan to implement.

• How much will it cost? Budgetary concerns and hard financial data can be provided here. Keep these goals realistic.