Business and Investment sidenote

The wholesale business is one of the largest and oldest industries in the world. You can date back organized trading to our first civilizations. The most important cities of the ancient world where trading posts that became important because you could control the economy in time of peace and also in time of war.

Now most business trade in some way or another, they trade products, services, something. Now it is easier then ever before to trade products, we have many more sales and distribution channels than ever before, we have many new tools to our disposal and information is easy to get and to transfer.

These days you can use the internet, drop shipping, telephone, email, bank wire transfers and many other resources to expedite business transactions and make it much more interesting for wholesale businesses.

There are many types of businesses you can start, run, or grow. It does not matter where you are in your business, fortune 500 or start-up. You will have a host of information to your disposal including articles, best practices, ebooks, lists of suppliers and how to guides.

Now you don’t even have to buy and sell products. Anyone can become a broker and just sell products without providing any start-up capital or investment. This works for selling to distributors, consumers, retailers, anyone.

Are you in business now or just starting a wholesale business? What type of business will you start? What products can you sell and where? How much money do other individuals or companies make? How can you start? These are all questions you should be asking yourself when exploring your venture. They are the most basic questions. Don’t just think of buying something and selling it. Learn about your products, where they are sold, who sells them, are they name brands? What are the prices for all channels? Who are the players in the industry?

More difficult questions will include what kind of profit and gross margins you’ll make, how to negotiate prices, who are the best suppliers for each product, how to find distribution channels for your items, etc.

The type of ventures you can find or start will include:

-Trading

-Distribution

-Exporting

-Importing

-Liquidations

-Many More

You should also learn about the different sales channels where you can send your products. Here are just some examples of sales and distribution channels you can use to sell your products. Each channel represents a sales opportunity, these will include:

-Online Stores

-eBay

-Selling to Supermarkets

-Selling to Convenience Stores

-Exporting to Mexico, Asia, Europe, etc.

-Selling to distributors and wholesalers

-Cash and Carry Stores

-Door to Door at retail prices

-Many More

Where you sell the products will depend greatly on the product and also on the pricing you have. If you deal directly with the manufacturer you can probably get great the best pricing available to anyone and sell to any channel you want including other large distributors. if you are buying the products from second or third parties your prices will not be very competitive.

No matter what kind of wholesaler you are. You have to try to work directly or as close to the manufacturer or brand owner as you can, or better, you can be the brand owner and sell your own products. That’s the best business of them all.

You can also find many type products including electronics, software, clothing, jewelry, and sports equipment, house furniture, that you can promote trade and sell.

Remember we did not touch on promotions in this article, just the basics of a wholesale business. Distribution is first but you will also have to remember getting the product on the shelves is one thing, selling it out the shelves is another.

Your business name can develop to become one of your most valuable assets, through marketing and the development of a relationship between the public and your brand.  This is why it is important to protect your name from misappropriation.  When you start a business you might naturally be aware of the need to clear the company name with companies house, and if you intend to develop an online presence you may also check the availability of domain names for your brand, but too often businesses are not aware of the importance of trade mark registration.

Differences between Company names, Domain names, and Trade Marks

Registration of your company name, and your domain name do not offer the level of protection necessary to prevent other businesses from using your brand names and logos in connection with competing products or services.  Also if someone else has trade mark rights over the name, then your company or domain registrations can be cancelled.  To properly protect your brand it is necessary to search the trade mark registers, and if the name is available to you to register, then apply to secure a trade mark.

Unregistered Trade Marks and Passing Off

Since 1994 unregistered trade marks are not afforded protection under the Trade Marks Act.  So, if you want to stop someone using your unregistered brands, you can only do so through a different type of legal action called ‘passing off’.  This action arises out of the common law, and its success involves proof of damage to your reputation, and confusion by members of the public, among other things.  This type of legal action can be extremely expensive, and is difficult to establish.

It is important therefore to register a trade mark, and to do so before you begin to use a name for your business.  As part of the process you will discover whether someone else has rights over a similar name, allowing you to make a change if necessary, rather than trading with a name that you cannot own, and that you may later be prevented from using.  If the name is available, then it is advisable to register and thereby secure the necessary ownership rights straight away.  If you instead delay registration, waiting to see if your venture succeeds, you may find yourself unable to secure.  This could happen if someone else, in the meantime, registers a trade mark which prevents your registration succeeding.

Protecting the Goodwill in your Brand

So, trade marks are an investment in the future success of your business.  The more established and well known your brand becomes, the more likely others are to piggy back on your brand success.  Goodwill in your business name is built up through substantial investment and marketing, and to avoid wasting this investment it is crucial that you check the availability of the trade mark beforehand.

A proactive strategy for protecting your brand will save business funds in the long run, providing a powerful tool to dissuade imitators and counterfeiters, and to take action to enforce your rights when necessary.