Starting a distribution business is a profitable affair. It is one of the easiest ways to become a businessman with less overhead compared to a manufacturing business. If you are an aspiring entrepreneur planning to start your own business, you should consider distribution business as a business option.
The success of a 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.
Identify dealer
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.
11 Best Distribution Business Ideas
#1 Agriculture Equipment or Fertilizer Distribution
First distribution business idea is related to agriculture. It is agriculture equipment of fertilizer distribution business. In this business, you need to sell agriculture equipment and fertilizer in bulk. This business can be started in a rural area. Investment required for this business is moderate.
#2 Automobile Distribution Business
The second distribution business idea is related to Automobile accessories distribution. Usage of vehicles is increasing especially in the city areas. Every vehicle demands repair or replacement at certain age. Thus staring business of selling automobile accessories is very good business option. If you are from automobile background you can start this business.
Also Read – 40 Part Time Business Ideas from Home Online & Offline
#3 Building Construction Material Distribution Business
Building Construction Material distribution business is real estate related business idea. A real estate business is likely to perform better in the future. You require a lot of capital in order to start this business. In this business, you need to deal in building construction material such as cement, TMT rods, brick etc.
#4 Colour & Chemical Distribution Business
A Colour and chemical are required in almost every industry. If you are from a chemical background you can start this business. In this business, you will act as a distributor of colour, chemical, rubber, plastic and other related material. You can purchase this product in bulk and sell it to earn a higher profit.
#5 Cosmetics Distribution Business
Cosmetic Distribution is next on the list. It is an evergreen business option. The demand for cosmetic and personal care product is high and it will increase further. It is advisable to become a distributor of leading brand to get quick success.
#6 Engineering Equipment Distribution
You can also think of starting an engineering equipment distribution business. The demand for engineering equipment such as crane, hydra, civil equipment business is moderate. This business demands higher capital.
#7 FMCG Product Distribution
FMCG products such as soap , toothpaste, shampoo always remain in demand. That makes FMCG product distribution as a lucrative business option. The investment required for this business is moderate. However, you may come across a lot of competition in this business.
#8 Gems and Jewelry Distribution
Women are fond of jewerly thus starting jewelry or gems distribution business makes sense. It is a capital intensive business with a lot of potential. You require good knowledge and competent team to start this business. You need to associate with good branded company.
#9 Home Appliance Distribution
Home Appliance distribution business is next in the list. Home appliance equipment such as refrigerator, mixtures, grinder always remains in demand. If you have expertise and contact you can start distribution business of home appliances. Investment required for this business is high.
#10 Medical Equipment Distribution
Medical and surgical equipment are used in hospitals and by patients. If you have good connections with medical equipment suppliers or hospitals you can start medical equipment distribution business.
#11 IT Hardware Distribution
IT Hardware Distribution business is next on the list. It is an evergreen business option with a good scope. However, it is challenging to become a distributor of IT equipment. There are lot of competitors in this business.
