How to start a wholesale business

You will need to decide on what you want to sell and find inventory, choose a business name and entity, and get a wholesale permit in order to start a wholesale business. Wholesale businesses can be extremely successful, but you will need to understand your specific market and consumer trends.

1. Decide what you want to sell and find inventory

   A huge step for starting your wholesale business is deciding what you are going to sell. It is generally a better idea to start with focusing on one group of products rather than tons at the beginning. This will help you get a handle on your business, and later you can expand if you want. After this, you will want to find inventory.

2. Choose a business name and entity

   You will also want to choose a name for your business. This helps you to connect to your business and begin to create marketing plans. Then, you will want to register your business as a legal entity and create specific business banking accounts for the business.

3. Get a wholesale license

   To legally begin a wholesale business, you will need to obtain a wholesale license. Check your specific state for requirements. You will also want to apply for an Employee Identification Number, which is basically a social security number for your business. It can be used to purchase inventory.

4. Figure out logistics

   Along with securing inventory, you will need to figure out many logistical aspects of your wholesale business. You will need to find warehouse space and a shipping company if you plan on shipping inventory. You will also need to hire employees.