Everything in your wholesale distribution business humming along nicely: your customers are satisfied, and your supply chain is consistently meeting their demands. Now, you want to expand, but you’re wondering exactly how you are going to make that happen.
As a business owner, you already appreciate that additional products, brand variety, and increased turnover are going to be at least three of your major considerations. However, each one of these is going to have an impact on both your funding options and, more importantly, your cash flow.
We have identified five key areas where a wholesale distribution business can focus its attention on ensuring a smooth transition from a small-scale operation to high volume wholesale distribution.
1. The right products – relating to your existing customers
Your current customers are the best indicators of what sells well, what doesn’t and the types of products you should start selling more of. Therefore, it makes a great deal of sense to consider the buying patterns of your current customers before choosing additional brands or products. As a bonus, it is also widely acknowledged that only a fraction of the effort expended in attracting a new client is needed to keep an existing one happy.
By keeping your current customers in mind, you ensure they’ll be coming along with you for the transition. Those customers will be a great base on the route to expansion, and matching new products that complement those they purchase already is crucial to making that work.