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Distributing from Day One

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Article Overview: Start-ups - don't delay distribution decisions.

Distributing from Day One

“Yes, but who knows about your products ?”

A question I often find myself asking budding entrepreneurs when I am brought in to mentor their expansion (more often, survival) plans. The blank face looking back at me tells its own story.

Many otherwise fine men and women starting their own business keep a close-on obsessive grip on their new project. Such motherly protectionism can lead to blinkers when it comes to distributing the new product or service.

Starting out, it can be more difficult to reach a market than you might think. Perhaps you’re not that well known, or your product is unheralded. It can be hard to pursue a clearly defined target market, as the temptation to follow today’s lead to get some cash in the bank dominates that niggling sense in the back of your mind that, really, you should be planning all of this in a more strategic manner.

Allied to the unfortunate, if understandable, chase for the quick buck, even when you know there’s going to be no long-term gain in such a pursuit, is the self-denial of time for strategic thinking, planning and calmness.

Distribution partners play a pivotal role at this juncture. Pay them well (or at least promise respectful commission rates on successes down the line) and suddenly you have four eyes, four legs and two telephones.

Choose wisely and ask all the right questions. Avoid giving distribution rights to another firm simply because they sound big, have a neat office, flashy car and cool website. Remember, it’s your product and your future and although we don’t want you to live in a cocoon, we most certainly do want you to retain control.

So here’s what you need to know about a prospective distribution partner.

Is this distributor an expert in the field ?
Is this distributor committed to your target market ?
Does your product fit in to his / her existing product range ?
Does he / she know the right people, the 'players' in your target markets ?
Can he / she clearly and in a convincing manner explain to you how your product will be aggressively marketed ?
Can you see in a verifiable manner that the necessary resources, human and other, will be put to work on your product ?

And why do I refer here to the person, rather than the organisation, with which you are negotiating ? Because relationships in business are, like in your personal life, made with humans. For a distribution agreement to prosper and work for both parties, there has to be mutual respect and, better still, you’ve got to like eachother. Bring the guy to a ball game, share a beer and ask yourself afterwards if this person is the person to push your business forward.

Establish clearly defined targets for your new partner. Make them know that you are aggressive but reasonable. Paint your partners in the same bright paint that you wear when it comes to building your brand and its sales volumes. Get them to learn the same tune you are playing. Distributing is partnering.

So who should in fact know about your products ? Well, those that you tell for sure (if you’re not telling, you’re not selling). But you know what ? Loads of people you’ve never met nor heard of should also know, because you have quality distribution partners on board from early on and they’re telling too.

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Article Tags: blank face, blinkers, calmness, cocoon, convincing manner, distribution partner, distribution partners, distribution rights, flashy car, four eyes, juncture, own business, pivotal role, protectionism, self denial, strategic thinking, target market, target markets, term gain, two telephones



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