The startup business model means two things: you use a lean business operations model to limit overhead costs and you find a product-market fit. Startups are also about disrupting existing markets and delivering better solutions to customers. In this sense, there is no bigger market to disrupt than the B2B wholesale market.
Even better, there are plenty of opportunities for new entities to enter the market. Selling products in larger quantities is easier than ever and there are more business customers to grab today. Before you enter the market, however, here are the top tips and tricks you need to know.
Invest in Reliability
One of the most important things to offer when you are in the wholesale distribution business is reliability. Customers need to be extra certain that you can deliver the goods you offer on time every time. To be successful in the wholesale market, you need to be just as agile as retailers.
A good way to improve reliability is streamlining the production line. Make sure you can produce the right amount of goods based on the orders you need to fulfill. It is also a good idea to minimize possible disruptions in delivery by handling the distribution yourself.
You can even go a step further than that. Simple things like using reliable plastic pallets from suppliers like gruberpallets.com can help keep operations running smoothly and problem-free for longer. You know the goods you deliver will arrive at the destination in good shape and at the right time.
Invest in People
The people you have throughout the operational workflow are just as important as the equipment you use. Sticking to the startup mentality, having passionate people working to support the company’s operations can help improve efficiency and effectiveness by a huge margin.
Develop a strong culture of delivering the best goods and services to the customers. This way, every part of the company knows that the main focus is keeping customers happy, not just with the products but also with the services alongside those products.
Don’t forget to trust the people working within the company. One of the keys to catering for business customers is having a strong team whose members work seamlessly with each other; this can only be achieved through mutual trust and a positive attitude.
Invest in Cash Flow
Lastly, make sure you have what it takes to maintain a healthy cash flow in the B2B market. Business customers could take up to 90 days to clear payments. This is common practice; a line of credit is among the services you need to offer to win customers.
Bad cash flow management can bring the whole operations down if you’re not careful. Make sure you manage orders and expenses meticulously so that you always know when the money is coming in. You’ll have better control over your business finances this way.
With the proper investment, disrupting the B2B market with your lean startup is easy to do. Now that you have the basics covered, you can start working on obtaining new business customers and meeting their orders.