How to Become an Electrical Distributor
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A distributor is the third entity in a supply chain. Supply chains begin with the creators of raw materials, which a manufacture purchases to make a product. The distributorship delivers the manufacturer's product to the retailer or merchant. An electrical distributorship is a business that provides distribution services to electrical parts manufacturers. To become an electrical distributor, it helps to have a background in warehousing or supply chain management.
Contact and introduce yourself to electrical parts manufacturers. Find these manufacturers by visiting the National Association Of Electrical Distributors' website. Contact various manufacturers and ask them to send you a new distributor packet or application.
Write a business plan. Distributorships require a warehouse facility and transportation vehicles such as semi-tractor trailers or commercial box trucks. Hire a business attorney or a certified public accountant to write your business plan with your input. They will calculate an estimate of start-up costs.
Apply for financing. Go to the Small Business Administration's website and navigate to the financial help section. The SBA lists approved lenders. Search for one in your locality. Take your business plan to the lender and apply for a business loan.
Sign distributorship agreements. Return completed distributor applications to the manufacturers and wait to receive approval. Once in place, you can receive the manufacturer's products and ship said products to retailers.
Owen Richason grew up working in his family's small contracting business. He later became an outplacement consultant, then a retail business consultant. Richason is a former personal finance and business writer for "Tampa Bay Business and Financier." He now writes for various publications, websites and blogs.