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Relatively
Easy & Quick To Start:
Distribution businesses are service related so they don’t
require the build out or leasing of a fancy retail location
or the start up of an expensive manufacturing plant. So in
comparison once you have contracted a supply of products to
distribute you can often be up and running very quickly.
Whether you will need to secure warehouse space to store and
ship your goods will depend on a number of variables
including the type and size of products you plan to
distribute. The good new is that if you do need to lease
commercial warehouse space to get off the ground it is often
much cheaper than high visibility retail space as your
physical location is not that important to your customers.
In fact
many distribution businesses are often launched successfully
from a home based location with a garage or basement serving
as “dirt cheap” warehouse space. Whether this arrangement
becomes permanent or not will depend on a number of
variables including how large you intend to grow your
business.
Potential
Low Start-Up Costs:
Depending
on the type of product you to intend to sell, starting some
types of distribution businesses can be extremely affordable
versus opening a retail store or restaurant for instance.
It’s very possible for example to start a business that
distributes inexpensive imported sunglasses or jewelry to
retailers for literally a just few thousand dollars- or
less. Other than securing a supplier all you need to get
off the ground in most cases is a phone, a desk, a computer
maybe, and a little space to store your product. And of
course if you can operate the business from home you
obviously don’t have the monthly overhead expense of leasing
space.
Grow At
Your Own Pace:
The fact
that you can start out very small and grow your business
incrementally as needed or desired is one of the great
advantages of starting and owning a distribution type
business. There are numerous success stories of distributors
that started out in a small basement or spare bedroom that
eventually grew into businesses that do millions of dollars
in sales a year. Growing at your own pace puts the owner in
the driver seat as far as controlling core expenses like
rent and can provide a certain comfort level while you learn
and build your business.
Better
Lifestyle:
And
finally because distribution is a generally a “business to
business” activity where you are selling to other businesses
you don’t have to deal with a lot of the negative aspects of
being a retailer or selling to the public. This includes
generally shorter hours and only being open 5 days a week as
compared to many retail businesses that are often opened 6
to7 days a week. Ultimately this distinction could provide
you with more flexibility and free time to spend on other
priorities in your life including your family. |
