Brick-and-mortar and e-commerce stores survive by buying from wholesalers, but many distributors are skeptical to work with relatively unknown businesses. Retail conglomerates are in the position to negotiate low prices because the volume-centric nature of wholesalers caters to them. Here’s how to establish your small business as one that appeals to wholesale distributors:
1. Obtain the proper documentation and licensing
If you don’t already have an Employer Identification Number, you’ll have to apply for one from the IRS. You will also need a sales tax license from your state’s revenue department. Then you’ll have to register your business name, which you will do with your county’s clerk office or state government.
2. Open financial accounts
Once you have an EIN, you’re ready to open a business checking account and credit card. Most wholesalers will use this to ensure you’re a legitimate business and determine your creditworthiness during the application process. These are also the accounts you will use to purchase from your wholesale distributor.
3. Find reputable wholesalers
Now the quest for a wholesaler begins! A simple online search can set you in the right direction. If you’re having difficulty finding a distributor, consult with the development center at your local Small Business Association.
Not every wholesaler will require all of these steps. At DollarDays, we don’t require any of it because our mission has always been to champion for the small business owners who don’t have the same resources as large companies. Remember to do your due diligence and truly vet a company before deciding to rely on them as your wholesale distributor. This partnership will significantly determine the future success of your business and it warrants the same level of careful consideration as every major business decision.