The demand for food and drink products keeps increasing daily. There is a need for more distributors to help channel these products to the consumer. Distributorship is a profitable business. According to entrepreneur, it contributes about 7 percent to the United States GDP. Though the business is a lucrative one, it is not immune to failures.
To get you started with the process of becoming a beverage distributor, here are some tips.
Start with the basics.
Try to understand the industry and how it works. There are many sub-sectors in the beverage industry and each sector has its peculiarities. It is paramount that you identify where your interests lie and research about it. The kind of beverage you want to distribute would determine the sector of the industry you operate in.
Know the requirements and government regulations guiding the industry. For example, in the United States, beer distribution follows a three-tier system. The manufacturers require distributors to get their products to the retailers before the consumer can access it.
Make sure you draft a business plan. Define your distribution model, start-up costs, target market, and operating costs. Outline strategies that will help your business soar.
Make sure you obtain the proper licenses and permits. Your company should be registered with the government and organizations that govern the distribution industry in your operating location and market. You need to do some legal work, obtain official documents and industry permits from the State and Federal government. Strict regulations guide operations in this industry. Right certification and licenses are what can keep your business safe.
A strong network of partners, clients, and suppliers is crucial to success in the distribution industry. Build relationships with manufacturers, retailers, and other distributors. Successful beverage distributors have a network that consists of partner distributors, manufacturers, and clients.
Make sure your books are in order
Inventory management and record-keeping are essential to the distribution business. You need to develop systems to ensure that your books are in order; every stock and business proceedings are well accounted for. Your profitability in the business depends on how well you manage and track your business operations.
To be leaders of your game, you need to stay current on new trends in the industry. Every member of the supply chain is affected, each party has to find ways to make the business profit them. Successful distributors spot trends and use them to their advantage.
Also, use technology to your advantage. The use of the right tech and software would allow you to minimize your operating cost and increase your profit margin. For example, technological advancement may help with customers and inventory management.
Your chance for success as a beverage distributor is high if you start off on the right foot. This implies that you have the necessary tools that can guarantee your success; the right connections, business finesse, keen insight, and proper equipment.