Funding Your Startup.

For some entrepreneurs, it is easy to raise money for their startup. As simple as the snap of their finger, however, most startups have to take a more detailed approach to step by step planning of the process. Today we are going to discuss ways to keep the cost of your startup low. Perhaps the best starting point is to figure out just how much you need.

Depending on what type of company you’re starting, the startup numbers vary widely in the wholesale distribution sector. Following are the points to remember:

• How much inventory will be necessary.
• What type of delivery systems will you be using.
• Would you be working from a desk and need only a small area in which to store your goods.
• Or would you require a large amount of specialized storage space for the product.
• For distributors who are sourcing, storing and selling bulky goods, a warehouse of sufficient size is a necessity, depending upon the size of products you’re selling and the amount of inventory you’ll be stocking.

• Don’t forget to leave room for a forklift to be able to maneuver between racks of pallets and shelves stored in the warehouse.
• Do you need a safe method of transporting the product to retailers?
• If you plan to stock heavy items, then you should invest in a forklift to save yourself some strain.
• The basic equipment needed for your wholesale distributorship will be highly dependent on what you choose to sell.
• Pallets are useful for stocking and pallet racking is used to store the pallets and keep them in order for inventory purposes.
• To ensure that the distribution process operates smoothly, select a location that allows you to move around efficiently and that includes the necessary storage equipment.

As a startup distributor, your initial inventory investment will depend on what you’re selling. Understand that your choice of goods will have some effect on how much you’ll need to shell out upfront. For example, you could buy enough apparel surplus to keep you occupied for the first few months for about $700. However, to start a mobile phone distribution business, you could need about $2500 to purchase a shipment of high-end phones. Expect to carry some inventory, no matter what the product is.

We have always been told that two are better than one. And this is exactly what collaboration does. It brings together the resources in talent, experience, finances and infrastructure from two different entities, leading to more effective problem solving. Reaching to new markets that is enabled through sharing and leveraging resources in a collaboration, increases and re-energizes the connection you have with established customers. It makes your firm a bigger part of the greater whole, and that there is power in that. So, if you plan a big startup, you might want to consider collaboration.

Experts say that the best way to determine your inventory needs is to look at your customers’ needs. If they’re the type who usually give you a three-to-four-day span between order-taking and delivery, then you may be able to skimp a bit on inventory and instead focus on forming solid, reliable relationships with vendors who can help you meet those timelines. However, if your customers are of the type that “need everything yesterday”, then your inventory will need to be ample enough to meet those last-minute requests.

Having a website for your business helps keep you up to date with the orders placed, on real time basis, and enables you to never fall back on delivery. Need-based-applications synchronised with your customer’s database can help you keep track of the items sold by your customer, so you know when the next order is likely to be placed. At HyperEffects, we pride ourselves in our ability to get your business on a platform that is used and utilized by millions every day. You can also get a personalized mobile app to connect with your clients on a personal level with customized offers, push notifications and many other interactive features that will save you the hassle of constantly being on calls. Enrol today for our free one hour session to understand more about this. We are here to help your business grow!