Do you want to start a promotional product selling business? Here in this article find the steps to follow including cost, processes, and legalities.
Every small and big businesses buy promotional gift item for their employees, and existing and potential clients. Sometimes for their suppliers and vendors also.
Promotional gift item is a million-dollar industry globally. This business is not to manufacture or print the product. Simply market these items and advise your clients to select the right product within their budget.
Any individual with an attitude of helping others by their potential creative mind can initiate this business as part-time and home-based also. Promotional product selling is also considered a lucrative and profitable business, considering the capital investment involved.
8 Steps to Start a Promotional Product Selling Business
1. Research the Market
Before starting the business, research the market and try to get as much information as possible to clearly understand the promotional products that are in good demand. After you select the products, figure out local vendors that are supplying those promotional products. You can do it from local business magazines or searching online.
2. Choose Products Carefully
When you are starting a promotional product selling business as a beginner with a low budget, it is advised to start with fewer items. You can concentrate on a specific category of promotional items.
It can be general product segments that are wearable like T-shirts, caps, etc.
Writing instruments like a diary, notepad, organizer, etc. bags like office bags, file folders, wallets, etc.
Drink wear or house wear like key chains, coffee mug, beer glass, flask, hot pot, etc.
Desk or office accessories like desktop calendar, clock, pen stand, paperweight, mouse pad, etc., and others. You can also tie up with specialty product manufacturers.
3. Create a Business Plan
Based on the information received from the market, start writing your promotional product selling company business plan. Some of the aspects that your plan must address are the sourcing strategies, financial plan, and marketing plan.
Calculate the per-unit cost of items as well as the profit margin.
4. Find Suppliers
Finding the right suppliers play the most critical role in the success of a promotional product business. The suppliers can be wholesalers or manufacturers. Establishing a business relationship with reliable vendors is extremely important.
5. Name Your Business
Choosing a catchy business name is very important. You must choose a name that clearly manifests your company’s products. The name must be such that buyers can easily relate to your company while buying certain promotional products. Also, don’t forget to book a similar domain name relevant to the business name.
Read: How to Name Your Business? Step-By-Step Guidelines
6. Register Your Business
If you are looking forward to building a legally compliant business entity, register your business. Choose the appropriate business structure as per your scale of operation.
For example, if you are from the United States, forming an LLC will provide you with certain benefits.
7. Arrange Funding
As with any business, finance is an important factor in starting this business. A promotional product selling business does not require any fixed capital investment. It only requires working capital. For this, you can apply for a cash credit or overdraft facility to a bank. You can also use your credit card to arrange short time finance.
8. Get Clients for Your Promotional Product Selling Business
Creating a product catalog is an absolute must for promotional product selling. You can send mails to the business houses with some detail and asking for an appointment or you can make phone calls also. Having a website in today’s world is a must.
It requires excellent sales and marketing abilities. Listening to your client with a caring attitude and responding with a successful action is the key to achieving long-term success in this business. As you will be working with numerous clients, organization skill is also required to be a successful one.
Becoming a trusted advisor to your clients to build a consistent client base is most important in this business. Flair’s idea about branding and promotion is a must in this type of business.
A reference always plays a major role in this business. In communicating with clients avoid the ‘one and done approach. Remember, a campaign must hit the recipient at the right time with the right message. Sometimes the message can be right, but the timing can be wrong.
If you give the recipient another chance when the timing is right, you may be able to increase your overall response rate in promotional product selling. Don’t try to be overly creative. Keep promotional products simple enough for the end-user to want to make them part of their everyday activities.
You may not be receiving feedback from end-users, but your client will definitely receive some feedback from his or her client base. Take full advantage of social media advertising to promote your promotional product selling business.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.