How to open a business in trade

Trading business is one of the most profitable. Sometimes a full cycle of operations from finding a supplier and purchasing a product to selling it to a customer can take only one day. But this business has a rather high risk ratio. Opening your own business in trade, you must be prepared for them.

You will need

• -Marketing research;

• -Business plan;

• -Room;

• -Staff;

• -Production.

Instruction manual

1

Conduct market research that will show the business situation in your chosen niche. It can vary significantly from region to region. If you decide to develop a wholesale trading business and choose industrial enterprises as end customers, you must act "from the contrary."

2

Analyze what is produced in your region, stop the choice on the most promising products in terms of the market. Next, decide where it will be most in demand. Be sure to take into account the presence of direct freight communication with the location of the final consumer. Based on this information, make a business plan.

3

Provide sections in the business plan for procurement, storage, promotion, and marketing. Also be sure to consider the possible risks. Take into account not only those that are related to your business process, but also general economic ones. These may include increased inflation, and depreciation of currencies, and rising prices for raw materials, as a result of which - rising prices for products purchased by you.

4

Make a financial plan for a future trading company. If you intend to start a business, resorting to loans, it must contain the investment part. It is necessary to provide information on how to repay the loan and provide a financial model of the business, which will take into account fixed and variable costs, as well as the receipt of funds.

5

Decide where your warehouse should be located. Of course, this does not apply to the trading business, which involves only the search for buyers, i.e. work from the supplier’s warehouse. But if you still need storage facilities, be guided by the presence of convenient access roads when choosing them. When it comes to small batches of small-sized goods - the availability of roads is enough. If you intend to trade in large bulk or your product does not fit the epithet "small-sized" in any way - look for a room with railway tracks leading to it.

6

Hire staff. The number of employees depends solely on the staffing, designed for the needs of a particular trading business. If possible, it is better to outsource some of the business processes to third-party companies. Today it is much more profitable. For example, you can transfer to management a function such as accounting.

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