If you’ve gotten to a point where your product is becoming well known enough that big-box stores want to meet with you, it is a critical point in your company’s development. Getting widespread distribution is critical to growth. If your business is at a stage when you’re seeking distribution, here are some tips:
- Start Small
While having your product sold at Target or Costco would be a dream come true, most small businesses start with smaller, easier targets. Amazon, for example, is far more likely to take on your product than these big-box retailers. It’s okay to start small and gradually build a name for yourself. This way, you’ll have some solid numbers to take to the big-box retailers when you eventually approach them later on down the line.
- Be Patient
Big-box retailers get approached so often that it may be a while before you hear back from them, if ever. Don’t fret. If you don’t hear back about an inquiry, wait half a year and try again. Six months from now, you’ll probably have even better numbers to report, and maybe an even more solid business plan. It’s okay to wait. Use the time to continue growing your business and increasing sales as much as possible.
- Have Numbers Prepared
When you do land that important meeting with a distributor, go prepared with numbers. Anticipate the kind of questions buyers will ask you, such as how much it will cost to stock and fulfill your product, whether it’s scalable, and how much profit they can make from selling it. They may also be interested to know what other products you sell. Bring samples.
- Prepare Your Pitch
Whether you’re pitching yourself on the phone or in person, have something prepared. If you try to come up with something on the spot, chances are it’ll either be too long-winded and verbose, or it’ll be too short and lacking important details. Write something down and practice it ahead of time. Remember, buyers want to know what makes your business special and great, and how profitable it is.
Getting a distributor may be the ultimate goal for many small business owners, but it’s a long process to get there. Put in the work, and doors will start to open. If you land a big account and have to purchase equipment or hire more staff visit www.biz2credit.com. One of our consultants would be happy to answer any questions you have about securing equipment financing, working capital or expansion loans.