When it comes to starting and running a successful wholesale business, there is no book that contains winning game plan. You will have to devise your own business plan and lay out strategies to mark your presence and ensure further growth in the industry. Being a newbie in wholesale industry, laying the foundation of a successful business can be quite challenging. Every experience is unique as every entrepreneur tries to do things in his own supposedly perfect manner. Whiles doing so, he makes mistakes that are typical to entrepreneurs. Figuring out and understanding these pitfalls can help other entrepreneurs avoid them. Knowing these mistakes may not help you win the game but give a great start instead.
Here are few mistakes that you should take note of.
You start it For the Wrong Reasons
Before starting any self-employment venture and investing money and energy in it, take some time to honestly assess your strengths and weaknesses. Are you going to start it without conducting any research, business plan or a thorough evaluation? Even if it is your dream, you must follow it by knowing its pros and cons. It does not matter how concrete your idea is or how attractive your wholesale products are, you must have a plan on how you will keep your business floating and profitable over the next several years. If you do not have sufficient market knowledge or any business plan to follow, you may be doomed to failure and losses a sooner than anticipated.
Sticking with One Idea For too Long
A single idea may be your catalyst to conquer the chosen market but it does not mean that you should stick to it forever. Wholesale businesses that grow are the ones which constantly reinvent their potential, improve their wholesale products, refine services and find new avenues to increase their profits. However, the newbie entrepreneurs who are afraid to explore new options eventually fail. An entrepreneur must remain open-minded to experiment with new ideas to see which one is more feasible according to market’s prevailing trends.
Overestimating Returns and Profits
Just because you have a ground-breaking business idea, you end up believing that it will be too easy to set up a business and conquer the market. It is a common mistake. Entrepreneurs do not have access to important data and of course no customer base to have an honest estimate of the expected revenue. Many times, they miss-size their market or even fail to collect enough capital to exploit a tiny part of that market either. No one can find out in advance that how the customers will react to their products. Therefore, one should not estimate returns on the plausible proposed values but he must have an appropriate sales and marketing strategy to calculate returns and profits.
Superior Quality is not the Competitive Advantage
If you are going to start your business considering that your competitive advantage is based on the superior quality of your products or that you are the first one to bring it into the market, there is a chance you could be wrong. It is easy to assume that all industry players in the market are working on similar lines and another entrepreneur can launch better products than you. Being the first one to bring the best product in town is never a long-term competitive advantage, so keep on exploring your market and sharpening your personal skills. Bring something new in the market and always push your limits.
Before launching a business start-up, you should gain practical, on-the-job experience. It will help you a lot in achieving the desired results.