Step 1.Identify your industry The first step to becoming a distributor is identifying the industry you’d like to serve. Prior to establishing your business, you’ll need to decide what you’ll sell and who your customers will be, as distributors typically specialize in a particular industry or sell products to specific consumer bases.

2. Register your business legally To operate as a distributor, you will need to register your business legally. You may need to acquire licensing or other registration depending on the state in which your business is located in. In order to ensure you’re in compliance with local business regulations, contact your local government center for business licensing and ask for information about the procedures for registering as a new distribution business. They will provide you with all the necessary applications and components for registering your company legally.

3. Seek suppliers and manufacturers Once you’ve established your distribution business as a legal entity, you should begin researching potential suppliers and manufacturers that handle the products you’re interested in distributing. You can often find information about becoming a product distributor on a manufacturer’s website or by contacting them directly. Some manufacturers prefer to sell their products through exclusive distribution agreements, while others work with independent distributors that sell products from various manufacturers.

4. Plan your logistics An important part of starting a business operation is planning logistics accordingly. You should start with identifying your budgetary capacities through financial calculations. This will help you get a better idea of how much money you can invest in hiring other employees and buying products. From here, try locating a warehouse to store the products you’re looking to distribute and draft a plan for how your business will function.

5. Apply as a distributor Once you identify potential manufacturers and suppliers, you should apply to be a distributor with them. Each company will have its unique application processes, but nearly all suppliers will ask you to go through an application process to see if you’ll be a good fit for them as a distributor of their products. These processes may require in-person meetings, tours of facilities, analysis of financial statements, providing proof of letters of credit from your financial institution, and other steps.

6. Build relationships As you design your business operations around the partnerships you’ve created with suppliers and buyers, you should work purposefully to build trustful working relationships with them. These relationships are a key part of maintaining a healthy distribution business, as manufacturers ensure a steady supply of products while buyers ensure a steady flow of sales. These entities will help you develop a profitable business model and grow as a company. If you are ready, please Apply to be a distributor of ours.