The Secrets To Setting Up A Profitable IT Reseller Business
It’s no secret that the IT industry is big business. In fact, this global industry is estimated to be worth around £4 trillion! As you can imagine, the industry is quite lucrative for all those involved in it.
There are plenty of sectors within IT that offer excellent growth potential and opportunities. Regardless of what part of the world you are from. One of the most popular areas to get involved with is IT reselling.
In a nutshell, IT resellers buy physical stock from wholesalers and sell them to consumers and business end-users. They do this online or through physical retail shops. If you can secure the investment to set such a business up, the financial rewards are limitless.
So, how do you go about setting up such an enterprise? Today’s blog post gives you an insight into getting started as an IT reseller.
Setting up the company structure
Wholesalers and manufacturers prefer to work with established companies, either private or public. They seldom do business with individuals like the self-employed for fraud prevention reasons.
Companies in the UK and Europe should also register for VAT. It will help you claim tax back on the things you buy from your wholesalers. And some wholesalers will refuse to do business with non VAT-registered entities.
I recommend hiring a good accountant to help you form your company and set everything up for tax purposes.
The next stage is investment. As you can imagine, setting up in business as an IT reseller isn’t an enterprise you can run from your bedroom! Wholesalers and manufacturers will expect you to buy large volumes of stock.
That means you will need significant financial investment. Most people choose to set up in business with a few investors, whereas some prefer to go it alone and use their savings.
You will need somewhere to keep your stock. That means leasing suitable warehouse premises. Other expenses will include warehouse staff and stock control systems. Don’t forget to buy or lease a forklift truck for moving stock around.
Suppliers will expect you to collect any stock you buy. That’s because of the large volumes involved. The easiest way to tackle this problem is to make use of cheap pallet delivery services.
They collect the pallets of stock from your suppliers and deliver them to your warehouse. Your staff will then allocate them appropriate storage areas in your facilities.
Bringing home the bacon
Now that you’ve got a warehouse full of stock, you need to find people to buy them from you! You should have at least one sales account manager working for your company. Their job is to establish connections with retail companies and business consumers.
Some IT resellers also sell products to the general public. Examples of such firms include eBuyer.
All modern businesses have an online presence. A website and social media profiles should be set up to promote your products and deal with customers. You could even sell online through your website by setting up an e-commerce system.
You could also sell old stock through online auction sites like eBay. I’d avoid using such sites for selling all your items due to the high selling fees involved.
There are no comments on this entry.