A tool distributor with a franchise is someone who owns a company that sells tools via retail stores and wholesale distributors. These individuals typically work in the industrial, construction, or automotive industries, manufacturing tools sold at prices below cost.
Tool distributors hire additional sales representatives to increase their business by placing orders with wholesale dealers and retailers throughout the country. This career path can be lucrative, as it often includes high salaries (usually around $150-200K per year) and other rewards such as a 401K plan based on total annual sales. Here are five basic steps of starting your business with a tool distributor franchise:
1. Get Your License to Sell Tools
The US government offers free online business licenses, and some companies can provide one for a fee. If you’re thinking about starting an industrial tool franchise, you’ll need a permit from the State Licensing Board. You can prove this by providing high school transcripts and high grades in business management, economics, and computer programming courses. Go through online websites where Cornwell Tools explains how to become a tool distributor in simple terms.
2. Find a Franchisee Matching Your Requirement
Online searches can help when hunting down a franchise opportunity that’s already licensed in your area. You’ll want to start by doing a quick keyword search on the words “tool distributor” and “franchise.” You can also perform a nationwide search and uncover franchise opportunities in all 50 states. This can provide you with an idea of what type of business type is available and the areas that have licenses. Finally, you’ll want to contact these franchises to see if they’re interested in selling their business.
3. Create a Business Plan
A plan is necessary before you can start your business. The best way to get started is by creating a concept plan, which should be written in 1,200 words or less. The plan should include all the details about your business, including your business objectives, strengths and weaknesses, marketing strategies, costs, and investment amount.
4. Find a Place for Business Operations
You can either rent or purchase a property for business operations. Still, it’s preferred you rent at first since you’ll want flexibility in case your tool distributor franchise doesn’t perform as planned. There are a couple of things to consider when choosing your location: residential and commercial zoning laws, proximity to transportation routes, nearby competitors, and more. The best way to get started is by researching online using available tools such as Google Maps.
5. Apply for a Business License
Depending on your state, you may have to apply for a license, such as a certificate of occupancy or business license. In some cases, you can obtain this from your county government. Once approved, you can start hiring employees and get all the necessary permits to begin sales.
At this point, you should start ordering inventory with wholesale distributors and retail stores that sell tools under their names. It would help if you kept an eye out for trends in the market and consumer feedback about your products that will help guide future business decisions.
Once you know the steps that you need to follow, the rest of the work becomes easy. Implement the measures mentioned above and see the difference for yourself.
