First, you will need to decide what types of products you want to carry. It’s best to be flexible with brands, colors and sizes, as that will open up your opportunities when dealing with suppliers.

Wholesale product sources

*Manufacturer: Most times buying direct means a high minimum order. Usually manufacturers will have smaller retailers buy their product through one of their local distributors. You can find this information either on the manufacturer’s website or by contacting them directly.

*Distributor: Usually distributors tend to carry a large variety of products in a certain category (say pet products) from several manufacturers. Their prices are slightly higher than buying direct, but minimum quantities are usually low and you have the convenience of purchasing products from different manufacturers on one purchase order. Once you’ve narrowed your product category, you can find distributors by searching online or by getting a distributor list from a manufacturer.

*Factory: You can get a great deal on price if you agree to import a 20′ or 40′ container of product direct from the factory. Lead times are typically 30 days or more and you will need to set up shipping with the factory or the manufacturer. Doing thorough online searches for importing product in your category will lead you to many factory sources who sell direct.

*Liquidator: If you are flexible about your product needs, this is a fantastic way to get a real break on price. Many times you can purchase a bulk load of product for up to 75% off the original wholesale price. Consider your purchases carefully because once a product is sold out it’s usually gone for good. Many liquidators have online sites where you can browse products and order right online.

*Online Auction: By persistently checking various online bidding sites, you can end up with a bargain-priced wholesale lot. Be sure to ask the seller if the item is a closeout or if you will be able to purchase again in the future. Reading the seller’s feedback will give you information on how they have done business in the past.

*Trade Shows: Attending trade shows is a great way to find the newest products and get wholesale contacts from a variety of sources. Both manufacturers and distributors exhibit at trade shows, so you will have plenty of products to choose from and you will be able to meet your supplier face-to-face.

Choosing the right vendors

After you’ve decided on the sources for your products, it will be important to pick your particular vendors. When dealing with manufacturers, distributors and especially overseas factories you will want to do an online search on the company name, read any online feedback and ask for references. You want to make sure that they are reliable, available and offer high-quality products. Be sure to find out their policy on returning defective and overstocked merchandise.

A variety of choices for acquiring your products means competition on price, service and shipping-all good things for you! It may take some research time in the beginning, but once you have a good set of product sources buying will become automatic and less overwhelming.

The types of items that can be found at live auctions

The goods being sold at auctions can make some retailers truly giddy with excitement when they realize they’ve stumbled upon the deal of a lifetime. Unsold products from a fallen business or antiques from an estate can prove to be profitable merchandise for a small retailer. Here are some of the more commonly found items for sale at auctions

Store fixtures and office equipment – When a store or restaurant goes out of business, it typically sells everything in the store – including shelving, light fixtures, seating, tables, mannequins, phones, fax machines, copiers, printers, etc. Many times, you can purchase these items for less than 75 percent off the retail price. For a new business, this can be one of the best ways to save costs in setting up a retail storefront.

Unsold merchandise – At an auction, one store’s failing can be another store’s huge gain. For retailers who carry a variety of products, auctions can be a great place to find items at a mere fraction of their original wholesale price. Cartons full of DVDs, video games and electronics are popular finds at auctions; however, depending on the auction, you can literally find anything and everything for sale.

Antiques – For antique, curio and furniture dealers, auctions can be one of the best ways to keep a unique supply of items in your store. Many of the finds at these auctions can be marked up as much as 250%, making them true goldmines for any antique dealer.

How to find live auctions in your area

Most retailers would be surprised to know just how many of these live auctions are happening in their area each and every week. You can narrow your auction search by reading the auction descriptions to find out exactly what type of merchandise is going to be sold at each live auction. Here are some of the best ways to learn about what auctions are happening in your area:

* Classified ads in your local newspapers
* Yellow pages (either in print or online) under “Auctions”
* Online auction directories
* Online search for “auction” and then your city and state

If you’ve purchased items from online auctions like eBay but never thought of attending a live auction, you just may want to give it a shot. For a retailer who deals with specialty or collectible merchandise, live auctions can prove to have even more deals than online auctions.

Find potential manufacturers – This may sound simple enough but it truly is a time-consuming process, as not all manufacturers are willing to take on new wholesale representatives. You will also need to consider how many manufacturers and products you want to get started with. While some wholesalers carry hundreds or even thousands of products from dozens of manufacturers in a particular industry, other wholesalers only carry products (and some just one product) from a single manufacturer. If you have enough money to invest, you may decide to work with an overseas factory and import one or more products to begin your wholesaling venture. You can find manufacturers by searching Google, looking on sites that connect manufacturers and wholesalers, like Alibaba.com , or attending trade shows.

Deciding which products to wholesale – You will find that most manufacturers require wholesalers to purchase a large amount of products in order to qualify for low wholesaler pricing. With some manufacturers requiring minimum purchases in excess of $10,000, you might choose to start with manufacturers that offer lower minimums, thus narrowing your product options.

Finding a warehouse – A wholesaler differs from a manufacturer’s rep in that a wholesaler purchases products, stores them in a warehouse and then ships them out to retailers. A manufacturer’s rep, on the other hand, simply finds buyers for the manufacturer’s products, without ever first purchasing products from the manufacturer. So, as a wholesaler, you will need a warehouse or fulfillment center to store your products. If you will end up selling to a specific region of the U.S., then it would be wise to have your warehouse within that region. If your buyers are nationwide, then you may want to consider a warehouse in the center region of the U.S., to keep shipping costs at a minimum.

Getting retail buyers to purchase your products – This, of course, is the hardest part as many retailers are stuck in their same purchasing habits and have no desire to buy from a new wholesaler. However, that just means it will take some extra effort to convince them that your prices, products and service are better than the competition. With new retail stores and websites popping up every hour of every day, there certainly isn’t a shortage of market potential for wholesaler. You can find new retail accounts by being an exhibitor at trade shows, through email marketing campaigns, contacting retailers directly, etc.

While the steps involved in becoming a wholesaler aren’t difficult, being a wholesaler does require a large amount of start-up cash in order to purchase inventory. In addition, it will take hard work and on-going networking skills in order to gain and keep new retail clients.

Important things to know about brand-name product sourcing

1. Fake “factory authorized” distributors : It is a must that you buy your products from distributors that have been authorized by the manufacturer to wholesale their products. Most brand-name manufacturers will not sell directly to you, so you will need to go through a distributor. It is easy to find a factory-authorized distributor for a particular brand-you just call or email the manufacturer and ask for a list of their wholesale distributors. If you search for distributors on the web there are literally thousands of companies who try to fool retailers into thinking they are factory authorized distributors, when in fact they will just take your order (which is significantly marked up in price) and place the order with the real factory authorized distributor.

2. Distributors selling fake brand name products : Companies seem to be popping up all over selling brand name goods that are actually knock-offs with inferior designs and quality. Anything from pocketbooks to clothing to watches are being sold online. You can eliminate being fooled into dealing with these counterfeit merchandisers by asking the real brand-name manufacturer who their factory-authorized distributors are. It’s that simple to avoid, but dozens of companies are still being scammed everyday.

3. Minimum orders : While the fake distributors may let you order in any sized quantity, the real factory-authorized distributors will usually have set minimum orders. However, most will let you mix the order with various products, all counting towards the minimum order quantity or dollar amount.

4. Payment terms : Once you are an established retailer you will probably have no problem getting net 30 terms from the distributor you are working with. However, for your first order you will most likely be required to pay upfront with a credit card or check.

Other ways to source brand-name products

If you are just looking for a recognizable brand, and not the latest, greatest model then buying discounted merchandise on eBay or from a closeout liquidator may be a great option. They may not be a steadily reliable source for the same product every time you buy, but most times you can get a real bargain. For instance, last season’s clothing style from a hip brand, last year’s model of a popular watch, etc. A lot of times when the new styles roll out, the old ones end up with liquidators or on eBay. You will usually be required to buy a certain sized lot, but many times it is much less than a distributor’s minimum order. Be sure to always shop around to make sure you are getting the best deal. Of course, thoroughly researching the company you will be buying from is always a must. With eBay sellers, be sure to read their feedback rating so you know if they are a reliable and trusted company.

There are several ways to get your store’s space working for you. The first is your store’s actual building or room. Think of what you can do to make your store’s inner shell more inviting. For instance, if the walls are white and your lighting consists solely of florescent bulbs, then think of using some warm-colored paint along with bulbs that are less stark. The less your store looks like a warehouse, the better! And, use the theme of your products to your advantage. If you sell toys , then get whimsical in your decorations – maybe a blue ceiling with painted clouds, big, framed pictures of close-up toy pictures on the walls, etc. Get creative in your surroundings – they are meant to delight your customers!

Next, it’s important to group your products logically and display them together. If you sell both inflatable boats and electric pumps, then they should be displayed near each other – otherwise you could be missing out on an obvious up-sell sale.

Once you have your product groupings figured out, it’s time to display them using tables, shelves, furniture, etc. The key is to get as many of your most intriguing items between waist to eye level. Even the most charming of products will go unnoticed if they’re sitting on a bottom shelf – save that space for additional stock. First, lay out your display furniture (you may want to use paper cut-outs until you get the arrangement figured out) to get just the right flow – making sure that aisles are wide and that the arrangement gives customers a natural walking path through your store. Now it’s time to arrange your products. Newest arrivals should always be in the most eye-catching of spaces – that way repeat customers will see that your store is always changing. The way your products are displayed will depend on the type of store you have. If you sell decorations for the home, you might want your displays to mimic rooms of a house. If you sell children’s products, you may want to have products both in and out of the box, as parents typically like to read all the product information that the manufacturer prints on the retail packaging as well as see and test the product up close.

Another important point to remember is that whether or not you’re continually getting in new merchandise, it’s always good to change things up once in a while. Move products around, change displays, etc. Give customers a reason to keep coming back – changing the inside scenery gives the impression that new products are always coming in and that there’s always something new to see. Some examples to consider:

* Seasonal or holiday-themed displays
* Displays for upcoming special events (i.e. the Super Bowl, the Oscars, or even local events)
* New product lines, brands, or designers

Creativity and attractiveness are the keys when designing your retail displays . If you have an artistic flair, then this is your time to have fun and boost your sales at the same time!

The five main types of business structures

Sole Proprietorship – This type of business is owned by a single individual that earns all the profits and is responsible for all the losses. A sole proprietorship is the simplest of all business structures, and therefore the easiest to set up. However, it is also the riskiest because your personal assets are not protected if a lawsuit is brought against your company. There are also no tax benefits for sole proprietorship owners. While this type of business may be suitable for a small home business, most business owners will find that a sole proprietorship is too risky for their company.

General Partnership – An ownership agreement where more than one person is involved. All parties share equally in the profits and losses of the business, as well as full liability for debts. The general partners also share equally in any personal liability. A general partnership can be formed with or without a formal written agreement and there is no filing requirement with your state. One thing to keep in mind with a partnership is that partners may not always have the same goals or direction for the business, as well as different ideas on how to spend the business’ money.

Limited Partnership – A business partnership where the partners are only responsible for their own investment. Typically, limited partners are seen as "silent partners" who have invested in a business but have no management authority. Since the general partners share the personal liability for the business, the limited partners do no share in this risk. One of the disadvantages of a limited partnership is that there is several state filing requirements..

Limited Liability Company (LLC) – A flexible business structure that allows for the simplicity of a partnership with personal liability protection for the owners. While an LLC doesn’t have to follow the rigid requirements of a corporation, most states do require a formal operating agreement as well as the filing of an annual report.

Corporation – A business entity which has certain rights and privileges (such as owning assets, purchasing property, etc.) similar to an individual. A corporation has a limited liability of its debts and the shareholders’ (owners’) assets are not at risk. Corporations must follow a specific management structure and formal policies in order to remain a corporation. There are annual filing fees for a corporation as well as annual paperwork requirements from the state.

The choice of a business structure is an important one and shouldn’t be taken lightly. For more information, please take a look at the IRS’ website.

But, don’t worry; email marketing doesn’t have to be pointless. When done right it can truly be effective. It’s getting your emails to stand out from the sea of junk that’s the seemingly tough part. Incorporating some of these tips into your next email campaign can help to increase both your click rate and your response rate:

Use a branded “from” name – Your marketing email’s from name should reflect your company or brand name, not the message contained within the email. If you want people to read your emails, then you’ll need to get them to trust you – and that means giving them a straightforward answer as to who is sending the email. Even tags like Specials, Weekly Tips, or Discounts added to the from name will make most recipients think twice about opening your emails.

Include a call to action in the “subject” line – If you want people to open your emails, you’ll need to give them a reason to. Some of the most successful email campaigns contain a powerful and tantalizing offer or teaser in their subject line. For instance: “50% off and free shipping – one day only!” or “Kids titanium bike – $59 and it ships free!” Give people a reason to act; don’t expect a “10% off all housewares” subject line to get anyone excited.

Use a “time is of the essence” strategy – Hyping up a big discount in your email’s subject line is one thing, but unless you give people a reason to react now, you could be missing out on a huge percentage of clicks. A tantalizing subject line may very well grab someone’s attention, but if it doesn’t require an immediate response it might end up being buried in a sea of other emails – inevitably to be forgotten about. So, before or after your call to action, give readers a reason to click. Something like “3-day sale”, “24-hour sale”, “One-day only”, etc.

Don’t over punctuate in the subject line – Punctuation can be a good thing in subject lines – especially exclamation points and question marks. But don’t go crazy. An overly-punctuated subject line is a red flag to most spam folders, meaning your readers will never end up seeing your message. So, try to keep an “at most” limit of three punctuation marks per subject line.

Inside the email: get to the point, quick – Okay, if you’ve followed all the above tips and are lucky enough to have someone click open your email, what now? Email readers make decisions very quickly on whether or not they close and delete and email. In order to give your message a fighting chance, you need it to be short and concise. Give readers more information about the teaser in your subject line and then give them the opportunity to click onto your website.

Email marketing is abused so much, each and every day, that inboxes are jam-packed with worthless scam emails. In order to make your emails stand out, you need to be upfront and honest about who you are and what you have to offer your readers.

It’s hard to compete when your competitors are all using the same selling points as you. But the difference will be that your competitors are most likely ending the sell there, while you’ll soon have all the information you need to take your promotions to the next level. Here’s how:

Get customers to visualize your product – Now, this goes beyond photographs or videos, it happens by using descriptive text so engaging that your readers cant help but picture your product in their head. Instead of saying “Handmade nut cluster chocolates”, try “Smooth ribbons of rich milk chocolate drizzled over chunks of honey-glazed almonds.” The trick is to tap into the reader’s emotions – whether that’s excitement, fear, nostalgia, etc. Once you have triggered that emotion in your reader, you have then succeeded in bringing them on a personal level with your product.

Talk about your company – One of the biggest reasons that website visitors leave a site is because they are unsure if the website is safe. Give your potential customers reassurance by giving them details about your company and as much contact information as possible. The goal here is to make your visitors feel safe and secure. With identity theft running rampant, website customers want to be certain that they are buying from a real company and not some front for an underground scam.

Let past customers do the selling – It’s no secret that those online testimonials can many times make or break a sale. If you don’t have any unsolicited testimonials from customers, then you can use a marketing email to reach past customers with a quick survey and comments section – perhaps offering them a store gift certificate for filling it out. If you are a merchant with Yahoo! shopping, then check your ratings – there’s a good chance that past customers wrote a store review for you. You can also elaborate for a paragraph or two about each customer’s experience, and then use their actual quote somewhere in the middle. That will make even a short one-sentence quote seem bigger and more convincing.

The best thing about using these tactics to stay ahead of the competition is that most retailers never use this type of selling, or at least they don’t use it effectively. The key is in knowing your target market and how to reach them. You can try experimenting with different approaches to see which one your customers really respond to most. So don’t let the fact that your product isn’t proprietary, new or unique get in the way of your company staying on top of the competition. Good luck!

For others, “mission shoppers”, shopping is purely a mission to purchase a specific item. They are searching for something in particular and most likely won’t take the time to browse around the store. These customers like simple and straightforward product displays. They don’t want to have to take a tour around the entire floor in order to find the product they are looking for. They also prefer not to get distracted from their shopping goal, so slow music, soft colors and little or no decorations is best to attract and please this type of customer.

With customers at such opposite ends of the spectrum, how on earth can a retailer cater to both types? Actually it’s easy than you might think. Think about the types of products you carry and what kind of customers frequent your store. For instance, if you are a trendy gift shop that brings in a lot of “browser shoppers” but also has the occasional husband looking for a birthday or anniversary gift, then you can design your store to cater to both types. While the majority of the store can be fun, bright and funky, why not have a table or space near the front of the store with a sign that says “Perfect Gift Ideas for Someone Special”. That will keep both customer types happy, without disrupting the other’s shopping experience.

If you have a retail store where “mission shoppers” visit on weekdays but “browser shoppers” visit on the weekends, then you can keep an “easy to navigate” and subdued floor plan on weekdays. Then, come the weekends, you can turn on the fast-paced music, bring in some brightly-colored decorations and even move some product displays around. It might take some work, but these little changes can do wonders for repeat business and increased sales.

If your store sells a variety of merchandise and you find that certain types of products bring in “browser shoppers” and others, “mission shoppers”, then you can design your store’s floor plan around this. Divide your store into sections and give each section a feel that caters to its shopper type. There’s no reason that the part of your store that sells sunglasses and hats can’t be fun and funky, while the section that sells cameras can’t be a bit more subdued.

Catering to different types of customers is crucial for most retail businesses. While your main target market might be “browser shoppers”, there may also be a large group of “mission shoppers” who want to shop on their lunch break or purchase a gift for their favorite “browser shopper”. Luckily, it’s not difficult to please both types of customers, even if they are completely different. The key is to know your customers. If you understand the people who frequent your store, then you’ll be in a much better position to give them what they are looking for.

Make an “after hours” schedule – Getting serious about your new business means making certain time commitments in order to get it off the ground. Whether it’s getting up a couple hours early or working late in the evenings or working ten hours on weekends, put a regular work schedule down on paper and stick to it. Motivation tends to wane when other engagements take precedence over what should be considered “work time”. So, stay focused and treat your after hours schedule as you would a second job.

Create a business plan – One of the most important things you can do for yourself and your new business is to create a business plan. This will force you to get realistic about the funds needed as well as the monthly expenses and the weekly hours needed in order to get your business running. You might find that you don’t need as much start-cash as you originally thought or that you’ll need to keep your full-time job for at least another year in order to build up some investment money.

Consider enlisting help – You may find that bringing on a partner will help to get your business off the ground (and you out of the rat race) even faster. Of course, entering into a partnership isn’t for everyone, and the idea shouldn’t be taken lightly. However, bringing on a partner with the same goals and who brings complimentary skills to the business could be one of the best decisions you ever made.

Think about when you could leave your job – Give yourself a motivating goal to reach. What will it take in order for you to work for yourself full time? Fifty orders a month? Three hundred website visitors a day? $5,000 in sales per week? Giving yourself this concrete goal will help to boost your motivation and hopefully get you to that point even faster. Be sure to take into consideration things like cost of health and dental insurance – as well as anything else that your full-time company is currently taking care of.

While the thought of quitting your job to work for yourself may sound both exciting and terrifying, preparing a plan can help make the transition easier. With a carefully thought out work plan and clear goals, all the guessing is gone and you’ll have real figures to base your decisions on. For most people, starting a business in their spare time makes the most sense and takes some of the financial risk and worry out of the equation. There are plenty of business owners who still clock in at a regular job in order to keep their benefits, regular salary and to share in the comradery of the workplace. Once your business is off the ground and showing signs of success, you’ll have the option of choosing to keep your full-time job or to devote all your working hours to your new business.