If you love flexibility and you want to quit your 9 to 5 job, then you should consider starting your own wine distribution company. The good thing about this kind of business is that you could choose when and how to work and you can start it alone or with one or two other people.
The fact that wine is generally consumed by people of all culture and class makes it a viable and profitable business to go into – there is indeed a large market for wines. The process of establishing this kind of business is easy, but you are require good marketing and managerial skills if you truly want to make it big in this type of business.
With a wine distribution company, you wouldn’t have to worry about the production cost and even the core advertising cost. Your only worry would be how to create more distribution channels for your wine. Just ensure that you have multiple wine production company that you helping to distribute their products and you will no doubt make great returns on your investment. If you truly want to start your own wine distribution company, then the following tips will guide you to get started:
Starting a Wine Distribution Company – Sample Business Plan Template
1. Register your Company and Obtain the Required License and Permits
If you are certain that you are cut out for this kind of business, then you must endeavor to register the company, before you can be issued a license to become a wine distributor in your state.
In most developed countries, the wine distribution industry is highly regulated and that is why you must follow all laid down legal channels if you truly want to become a wine distributor. If you are not sure of all the license and permits you would need to start your own wine distribution company, then you should contact your local or state government and you will be properly briefed.
2. Carry out a Comprehensive Market Survey
If your desire is to make good returns on your investment, then you must make it a point of duty to carry out a comprehensive market survey, so that you can identify areas where you can distribute your wine and also the brand of wine that is really selling well in the market.
During your market survey, you would have to talk to owners of groceries stores, liquor stores, bars, country clubs et al to know the brand of wine that they need in their wine racks and the amount they will be willing to pay. This would guide you to know the type of wine production company to seek to be their distributor. Besides, your market survey will enable you create effective distribution channels.
3. Procure a Distribution Truck
You would need a distribution truck or van for this kind of business and you would have to procure one. In some cases, depending on the agreement you reached with a wine production company, they might provide you with their own branded truck or van that you can use for the distribution of wine to your customers.
4. Talk with Vintners (Wine Production Companies) to Secure Distribution Slot from Them
The fact that you are an independent wine distributor means that you can distribute different brand of wine at the same time to your clients. The truth is that you stand the chance of making great sales and profits if you deal in varieties of wine. So, what you need to do is to work with the report you generate from your market survey so that you will be properly guided on the wine production company that you need to talk to in order to become their distributor. In some cases, you might have to create another market channel for yourself especially when a wine production company already has a distributor covering a certain area in a state. They do this to create advantage for their distributor.
5. Prepare Your Business Card and Catalogue
If you are into the distribution of varieties of wine, then it is advisable that you create a catalogue that shows the various wines that you distribute and their prices. Of course it doesn’t pay you to always carry all the brand of wine that you distribute along with you when you go out there to market. That is why a good catalogue is needed for effective and efficient marketing. You can also print and distribute a business card that clearly states the kind of business that you do.
6. Perfect your Marketing Strategy
One of the areas that determine how profitable you can build your wine distribution company is your marketing skills. Since you are your own boss, then you must perfect your marketing skills if you truly want to make returns on your investment. There are various places you must visit to market the brand of wine that you distribute; you would have to visit liquor stores, night clubs, groceries stores, country clubs, hotel and bars et al.
No doubt if you distribute wines for renowned brands, then you will have to struggle less to convince customers to buy wines from you. The good thing about wine distribution business is that you would not be required to pay money for advertisement because the wine production company will be responsible for the adverts of their wine.
7. Perfect Your Bookkeeping and Accounting Skills
Another area where distributors encounter major challenges that may resort to a loss of money is when they aren’t skilled in book keeping and accounting. If you want to avoid unnecessary loss of your money, then you must endeavor to undergo book keeping and accounting trainings. The fact that you may not collect your money upon delivery of wine means that you must keep proper records to avoid mix-ups. You are also required to keep proper records with the wine production companies you are dealing with because in most cases you will be given supply of wines on credit.
Would these tips help you really get started on the right footing? You bet it would, as these are time tested tips that should sure guarantee you a great start in your own wine distribution company.
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