To start Business with Distribution Model attracts good returns on Investment but there are many things one has to keep in mind while short listing and finalizing any business model.
It would be solely depend on person whether to go with established brand as a Distributor Partner or with newly Startup Company or regional player!
Brand can give you 18 to 24% of annual returns on your Investment which is healthy enough in today’s market scenario but when you get connect with any startup company, May be challenges would be at higher side but the returns they offer on your investment would be much higher compare to any branded company.
You have to choose your options very wisely while opt any Franchise business opportunity or distribution opportunity.
Ensure following before heading towards investment in any company –
- Prefer Office and Warehouse location in your assigned area only- It would lower your logistic cost.
- Be system oriented by day one of start – It would help you to monitor your business closely.
- Involvement – Be involved actively in new Distribution business to have complete control on it in first three months.
- Market Visit – Make strong relations with Retailers while visiting all retailers once, make habit to have visit on top outlets of your area.
- FIFO – Maintain First in First Out policy especially in edible items.
By choosing Business opportunity wisely and maintaining right systems, you can earn good returns on your investment for sure.