On a basic level, dedicate the basic space and supplies needed to do business. You should have a separate business phone line, a fax machine, and a business e-mail address. If possible, dedicate a separate computer and corner of the house for business purposes alone. On a more advanced level, familiarize yourself with the legal side of establishing a business. Set yourself up as a business entity. Research any restrictions involved on how the product/service you want to provide can be traded. Make sure that you know how to file your taxes and do so accurately when the time comes.
Services or specialty products are usually easier industries to break into as a new middleman. Generic products that are readily available are often purchased direct from manufacturers, and convincing a retailer to change can be nearly impossible if the system it currently uses works well.
When you’re dealing with a product, this usually means researching retailers who would be interested in selling that product. Research local retailers by looking in the phone book or searching online. Research non-local retailers by looking through online databases of retailers. Focus your search on small and medium businesses instead of major brands. When you’re dealing with a service, you may need to rely on more traditional advertising to find individual consumers and business entities in need of that service. Start with the parties you first observed the need through—oftentimes, this will be someone you know personally or a local business. Work through that source to find other potential buyers who face similar issues.
You can send an e-mail to touch base with your potential buyers, but contacting consumers by phone can often leave a more professional impression, especially when you’re dealing with businesses instead of individuals. When you contact retailers, try to speak directly with the purchasing manager. Ask that individual if he or she would be interested in seeing a wholesale price list. If the answer is “yes,” promise to get that list to the retailer within a few business days.
When dealing with products, you need to search for manufacturers. Unless your focus is strictly on a local product, this may mean searching for international manufacturers. When dealing with services, the suppliers will usually be local.
Take into consideration the entire value of the quote. The supplier with the lowest quote may not be the best one if the product it supplies is dramatically inferior to the product another supplier offers. The same can be said for suppliers of services.
Note that suppliers who already work with other middlemen may have a set commission fee they allow middlemen to charge. Determine if this is an issue before you try setting your own commission.
Factor other fees you’ll need to worry about, like taxes and shipping costs, when providing the final cost to your potential consumers.
Regardless of the product or service you work with, it is generally safer to work with multiple suppliers instead of a single source. If you only work with one supplier, your business goes under as soon as your supplier’s business struggles or your supplier decides to stop working with you. Consumers may also recognize that your business is at risk if your supplier suddenly cuts you off, which may discourage them from trusting or relying on your business.
Working with multiple suppliers is one way to accomplish this. With no one supplier to become attached to, the customer is more likely to become attached to you. Another way to encourage customer loyalty is to focus on the entire sales experience, including both the pre-sales and post-sales portions. Regardless of the product or service you provide, you should also provide excellent customer service.
You can maximize success by becoming the person your buyers and suppliers turn to for a better experience. For suppliers, this means expanding their customer base and taking care of a portion of their marketing. For consumers, this means delivering the best product or service for the cost they are able and willing to pay. Sift through the junk and evaluate all the different options before offering the best one.
Create a website and establish social media accounts to interact with suppliers and consumers. Through your website, consumers should be able to learn about the process, contact you, search for products/services easily, create accounts, and place orders. Billing and order fulfillment information should also be readily available. [10] X Research source Moreover, your digital presence must also extend into the mobile world. Make sure that your website can be easily navigated on smart phones and other mobile devices. When applicable, consider using mobile apps to streamline the process even further.
When appropriate, consider placing time restrictions on the delivery of payment and the delivery of the product or service. Make sure that all sides know your restrictions and agree to work within them. [11] X Research source
Make it easy for the parties you work with to contact you by phone, e-mail, and fax. If someone on either side of the process has a problem, address it immediately and keep the party informed during each step of the solution. Avoid leaving suppliers and consumers in the dark. Treat both suppliers and customers well during your exchanges.
Watch both sides of your business carefully to determine how well your current process works and where you might need to improve. Consider asking the parties you work with to rate the experience or answer a few survey questions about it.
When asked, let your consumers know the source of your supply. Many buyers express an interest in this information so that they can determine whether or not they wish to support a supplier’s business practices. Break down the cost for your buyers so that they understand exactly where the money is going. This can prevent them from feeling betrayed later on if they learn the information from another source.
