Starting a distribution business is a profitable affair. It is one of the easiest ways to become businessmen with less overhead compared to manufacturing business. If you are aspiring entrepreneur planning to start your own business, you should consider distribution business as a business option.
The success of wholesale distribution business depends upon proper strategy, execution, planning, product demand and capital. In this post, we will take a look at 15 Best Distribution Business Ideas with low cost. In addition to that, we will also discuss things to take care before starting a Distribution Business.
Things to Take care before starting a Distribution Business
Here is a list of things you need to take care if you are planning to start your own distribution business.
Find out the right product
You should enter into distribution business with the right product. There are many products available in the market. You should hunt for the product which is demand and likely to remain in demand. Also look for product quality and a requirement for maintenance. Select a quality product with low maintenance requirement.
Once you are done with identifying product next task is finding a good dealer. Dealers are very important in the distribution business. Select a dealer with good credibility, wide reach and capacity to handle multiple customers. Once you are done with identifying dealer next is establishing a supply chain. Decide via which mode you will send products to the dealer and on what terms.
Also Read – 10 Golden Rules for Successful Business
Make an arrangement of Space
As distribution is a wholesale business, it is but obvious that you will need a lot of space to store products. Either you can rent a space or decide to buy a storage space. Make sure to select a place near to factory outlet so that it will be easy to transport the products. In addition to storage space, you need to plan for security also.
Arrange for Capital
Without capital, it is difficult to run the business. You need to calculate and arrange capital required for the business. Also, consider working capital while calculation. Once you start the business you need to keep track of money. You can either do it manually or decide to invest in appropriate ERP software.
Well, after going through a list of things required to be done before starting distribution business, let’s take a look at 15 Best Distribution Business Ideas.
15 Best Distribution Business Ideas
- Agriculture Equipment or Fertilizer Distribution
India is agriculture based country. A demand for Agriculture based equipment’s and product are growing every day. Thus, starting an Agriculture Equipment or Fertilizer Distribution would be a profitable option. There are many local and foreign manufacturers of farm machinery, tools, and fertilizer who are looking for distributors for specific regions. If you are from a rural area where the demand for such products is high you can think of starting this business.
- Automobile Distribution Business
Automobile distribution is one of the most popular business options. Automobile products such as accessories, lubricants, battery are always in demand. You can grab this as an opportunity and start your own business. However, you need to be careful in selecting products. There are many players in this market and many duplicate products are also found.
- Building Construction Material Distribution Business
The infrastructure sector is booming and future of Building Construction Material Distribution is very bright. It is a heavy capital-centric business. Along with capital, you will need a lot of space for this business. In this business, you need to deal with products like cement, TMT rods, sand, stone chips bricks, glazed tiles, paints, etc.
- Colour & Chemical Distribution Business
Colour and Chemicals are used in various industries for different purposes. You can think of starting distribution business of chemicals, dyes, rubber, adhesive, plastic etc. Manufacturing of few products from this segment is banned in the several foreign countries. So, a demand for such products will be high in that countries. It is recommended to carry out research before starting this business.
- Cosmetics Distribution Business
Females in India are fond of cosmetic and personal care product. These types of product always remain in demand. Thus starting cosmetics distribution can bring good success. There are multiple companies in this segment you should select branded company with very good products.
- Engineering Equipment Distribution
Engineering equipment is purchased in various manufacturing industries. Crane, Hydra, earth moving equipment, civil, construction, and control equipment generally remains in demand. If you have a lot of capital you can think of starting this business.
- FMCG Product Distribution
Starting FMCG product business is a lucrative business option in India. These types of products always remain in demand. It is easy to establish a supply chain for this type of products. The investment required for this business is also low. However, there is a lot of competition in this business.
- Gems and Jewelry Distribution
Gems and Jewelry distribution is another lucrative business segment in India. This business demand lot of investment. You must have enough cash to start this business. Apart from this, you require a trustworthy team for starting this business. Make sure to tie up with a popular company with good brand value.
- Home Appliance Distribution
Home Appliance and kitchenware like a juicer, grinder, refrigerator, water purifier, mixture, irons etc. always remain in demand. Apart from that capital investment required for this business is moderate. You can get good success in this business provided you select good brand like Samsung, LG, and Godrej for distribution ship.
- Hospital Equipment Distribution
If you have knowledge about the medical field, you can think of starting hospital equipment distribution business. You need to establish good hospital network to get success in this business. The hospital equipment includes stretchers, electrocardiographs, monitors, X-Ray machine, MRI Machine, Operation Theatre bed, examination couches etc.
- IT related Equipment Distribution
A demand for computer peripheral like desktops, laptops, servers and network devices are growing. If you have knowledge in IT field you can start this business. It is a highly profitable business with good success rate. You need to select good brand such as Dell, Cisco, HP etc.
- Medicine Distribution
If you have knowledge about pharmaceutical products you can start medicine distribution business. There are ample amount of opportunity in this business. Capital requirement of this business is also low. However, you need to work on establishing a good dealer network.
- Organic Food Distribution
People are becoming health conscious and they are ready to spend money on the organic food. There are many organic food companies looking for a distributor in India. If you have a good dealer network and if you can market this type of products you can rule the market.
- Safety and Security Product Distribution
Safety and security product has various industrial application. In addition to that in few industries, it is mandatory to maintain safety and security-related items due to the mandatory audit requirement. Common product famous in this segment are fire extinguishers, helmet, boiler suit, access control system, CCTV etc. If you have knowledge in this field you can start this business.
- Seed Distribution Business
Seed distribution is a highly profitable business. Seeds are used in agriculture and crop quality and yield depend on the quality of seeds. Farmers are generally looking for high-quality seeds and they are ready to spend more money for that. If you have a good dealer network in a rural area you can think of starting this business.