by Dawn Williams

Created on: July 26, 2008   Last Updated: June 22, 2009

The first thing you need to do when starting your own business, even a business you are running from home, is get information on licensing from your local chamber of commerce. Once you are licensed and have a tax ID number you will be allowed to purchase from wholesalers that sell exclusively to retailers. You also will get tax exemption from purchases. However, you will have to file tax estimates according to your estimated sales.

After you have received your license and tax ID number begin searching for wholesalers on the internet. You should use a variety of search engines as each will bring up some different results. Also search under different criteria, such as "wholesalers for retailers", "importers of wholesale products", "buying below wholesale", etc. If you have a specific item you wish to buy, such as jewelry or tools, include that in your search criteria.
Another good resource for wholesale purchasing is trade shows, flea markets (pick up items similar to those you are looking for or make discreet notes on where the products are coming from by looking at the backs of packages) and look up these companies online or write to them to inquire about purchasing wholesale for your company.
Another good way to obtain large quantities of items is through wholesaling auctions, returns and overrun auctions and import auctions.
Constantly be on the lookout for new sources. Most wholesalers have a minimum purchase so be prepared to make quality investigation time to insure you purchase wisely. Research the item or items you are looking to buy through online auctions such as E-Bay, your local stores and other avenues of sales (flea markets, craft shows, etc) to see if these items have a successful selling market.
Once you have made your purchase and are ready to sell price the item(s) at a cost that will make you some profit but is still a bargain to your customers. If you sell an item too high, you might reap a bigger profit for each item, but your sales will be more limited and may result in less profit overall than a larger quantity of sales at a lower profit per item. Look for multiple streams of promoting and selling your item (E-Bay, storefront, auctions, craft or trade shows, your own website, fliers, small ads in local and far away papers, mail order, etc). The more places your product is available and the more people who see your item(s), the greater the chances of higher volume sales.
Don't be afraid to make your item more attractive to the buyer, also. For example, if you are selling a necklace present it in a decorative jewel box or hang a necklace around an inexpensive but adorable stuffed animal. If you are selling tools package them in cheap tool caddies or add batteries to items requiring them. Even adding small bows to a package at a craft show can make it more appealing to the customer.
Finally, have fun and be creative. Being different is what gets you noticed.....having products people want and can use at a price they can afford will keep them coming back!

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