The wholesale bead industry supplies businesses with beads at below-retail prices. This is done by establishing buy rates directly with bead manufacturers. Becoming a wholesale bead supplier involves more work than simply purchasing beads and renting out warehouse space. Success in the industry is a product of careful planning and marketing strategies. Strong negotiation skills are needed since your business has to deal with bead manufacturers and bead buyers.
Instructions
1. Apply for an Employer Identification Number (EIN). This number serves as your credential in the wholesale industry. Most bead manufacturers and dealers ask for this number prior to completing any business dealings. This nine-digit number is issued by the IRS and is required for any business that reports employment tax. The IRS uses this number to track various business activities including income tax reporting and paying. Apply for an EIN online or by phone. Keep a copy of the EIN that will be provided after completion of the online or phone application. Apply for an EIN by mail by submitting IRS Form SS-4.
2. Obtain a state sales tax identification number. This number is assigned by the state and is required to receive sales tax on goods sold within the state. Contact your state's Department of Revenue for detailed application procedures and guidelines. Each state has its own rules regarding tax collection and reporting. For example, some states, such as Texas and Tennessee, don't collect state taxes.
3. Secure a wholesaler's license. This license allows you to forgo paying sales taxes on goods and materials that are purchased for resale. Contact your state's Department of Revenue for updated guidelines and fee information. Submit a legible, accurate application to avoid processing delays.
4. Create a solid marketing plan. Answer important questions such as who is your target market and what are your bead supply specialties. Deciding who your target market includes can help you avoid buying beads that won't sell. For example, are you marketing your beads to small business owners or large bead supply stores? Does your customer prefer elegant glass beads or durable wooden beads? Remember that the types, amount and quality of beads you intend to sell affect your sustainability. Base your advertising strategy on factors including wholesaler competition and initial budget. Determine the need for warehouse space or additional operating space.
5. Solicit funding from investors. Gain the start-up capital you need by meeting with banks and private investors. Explain your business goals using confident language. Consider teaming up with a jewelry business to help promote your new business.
6. Purchase storage and operations materials. Keeping your beads organized is essential in the wholesale bead industry. Decide how your beads will be separated and classified. Common classification methods include sorting beads by color, material and shape. It may be necessary to purchase temperature-controlled containers for delicate beads. Maintain all ordering information in one central location to avoid losing important documents and offers.
7. Collect information about bead manufacturers. Compile a list of companies that supply the types of beads you're interested in buying. Contact the manufacturers directly to establish personal relationships with each company. This personalized approach can give you access to lower rates. Supply your EIN for validation purposes.
8. Advertise your services. Create a website and mailing list to attract customers in your target market. Consider sending bead samples to interested customers. Visit local jewelry shops and craft supply stores to survey the competition and recruit new business. Attend craft trade shows to interact with potential suppliers and customers.
Tags: bead manufacturers, target market, your beads, your business, your target