Content

• Steps
• Part 1 of 2: Getting Started
• Part 2 of 2: Working as a mediator

Many people successfully work for themselves, offering intermediary services between suppliers and consumers. Making a career in this field is not easy, so you need to know how to contain and minimize the risks involved.

Steps

Part 1 of 2: Getting Started

1. 1 Create your own business. When you start working as an independent broker, you start your own business. The initial cost will be very small, so you can get started quickly enough, but do not forget about the professional and legal aspects of your new activity.
   • At a basic level, you need space and technical support to do business. Obtain a separate work telephone line, fax and work e-mail address. If possible, set aside a separate computer and space in the house for work.
   • On a more serious level, you need to familiarize yourself with the legal side of the case. You need to formalize yourself as a business entity. Investigate any restrictions on the products and services you intend to work with. Learn how to file your tax return correctly by following these rules accurately and on time.
2. 2 Determine the need. Research the market and find a suitable niche that you can fill. The greatest need will be in the industry where the structure of supply and demand is sluggish or does not satisfy consumers and suppliers.
   • It is usually easier for new resellers to get into the market for services or specialty goods. Generic products are abundant in the market and are often sourced directly from manufacturers, and it is almost impossible to convince a retailer to change a stable scheme.
3. 3 Study potential buyers. Identify potential customers for your chosen product or service. Depending on the nature of the planned activity, both local and global buyers can act as consumers.
   • When dealing with merchandise, you need to research the retailers who might be interested in selling the product. Research local distributors using the internet and telephone directory. Explore global retailers using online retailer databases. Focus your efforts on small and medium-sized businesses, not big brands.
   • When you are in the service, you will have to rely on traditional advertising to find businesses and individual consumers of the service. Start with the companies that made you aware of the need for such a service - often it can be your friends or just local companies. Research this source to find other potential buyers with a similar need.
4. 4 Getting in touch. Having compiled a list of potential buyers, you need to call them. Find out their needs and what you need to do to make them want to work with you.
   • You can send an email to test the waters, but a phone call looks more professional, especially when dealing with companies.
   • When contacting distributors, try to speak directly with the purchasing manager. Ask him if he is interested in exploring your list of wholesale prices. If so, promise to provide such a list within a few business days.
5. 5 Research potential suppliers. Find as many potential suppliers of the selected product or service as possible. Examine each item on your list, then narrow it down to the top ten.
   • When dealing with products, always look for manufacturers. If you are not going to work exclusively with a local product, then you should look for foreign manufacturers.
   • When dealing with services, suppliers are usually local companies.
6. 6 Find out the rates. Contact potential suppliers and ask for a quotation for specific products or services of a certain quality. After collecting information on prices, compare them and select the best deals.
   • Consider the overall value of the proposal. The supplier with the lowest price is not always the best if the product it provides is significantly inferior in quality to that of other suppliers. The same goes for service providers.
7. 7 Add your share to the value. As a reseller, you will earn money by earning a certain commission on each sale. The exact amount is not constant, but the commission itself is usually 10-15 percent.
   • Suppliers already working with other intermediaries may have a set commission. You need to know this point before trying to set your own commission.
8. 8 Pass information on to buyers. Reconnect with potential buyers from the list.Provide the final cost of the product or service with your share already included.
   • When communicating the final cost to potential customers, be sure to factor in other costs such as taxes and shipping costs.

Part 2 of 2: Working as a mediator

1. 1 Awareness of the risks. In some industries, middlemen may thrive, while other industries will try to push them out of the picture entirely. If you are not able to prove your own importance to consumers and suppliers, then your business will not last long.
2. 2 Diversification of goods and services. Try not to narrow your business down to one type of product or service. In order not to leave the game, you should diversify the sources and specifics of the goods and services offered.
   • Regardless of whether you are dealing with products or services, it is generally safer to work with multiple suppliers. By working with just one supplier, your business will go down with the first problems with that supplier. Also, the supplier may simply stop working with you.
   • Consumers may also feel that your business is in jeopardy if the supplier abruptly abandons you. This can reduce your credibility or confidence in a successful collaboration.
3. 3 Reward loyal customers. To prevent suppliers from becoming your rivals, you need to ensure that consumers are loyal to you and not to the supplier's brand.
   • One of the solutions to the problem is to work with several suppliers. If you are not dependent on one supplier, then most likely the client will be dependent on you.
   • Another way to reward customer loyalty is to focus on the entire sales structure, including pre-sales and after-sales. Regardless of the product or service provided, you must provide the best customer service.
4. 4 Focus on quality. The quality of the goods or services provided to consumers should be the best, while one should not forget about the quality of all cooperation with suppliers and consumers.
   • To be successful, be the person your buyers and suppliers want to reach out to.
   • It is important for suppliers that you expand your customer base and take on some of the marketing hassle.
   • It is important for customers that you provide the best product or service for a price they can and are willing to pay. Weed out inappropriate offers and evaluate different options before submitting the best offer.
5. 5 Active digital presence. Any activity today will be difficult without an active digital presence. Make your interactions as convenient as possible for consumers and suppliers by making it easier to access your activities on computers and mobile devices.
   • Build your website and social media profiles to interact with customers.
   • Through your website, consumers should be able to research your business, contact you, easily search for products and services, create accounts, and place orders. Information on billing and order status should also be present.
   • Moreover, the digital presence must embrace mobile devices. Your site must have a mobile version for smartphones and other portable devices. If possible, even a specialized mobile application can be developed today.
6. 6 Speeding up the exchange. Today, people are becoming more and more accustomed to the feeling of instant gratification. Intermediaries evoke negative associations with a slowdown in the trading process. Don't let it slow down; instead, use every opportunity to speed it up for all of your customers.
   • If appropriate, you can impose time constraints on the payment and the timing of the provision of goods or services. All parties should be aware of and willing to accept such restrictions.
7. 7 Stay in touch. Consumers and suppliers should be able to contact you seamlessly and receive timely responses to their comments, questions and concerns.
   • Always stay connected by phone, email and fax.
   • If a problem arises in one of the links in the chain, then immediately tackle it and constantly inform the party about each step of the solution. Suppliers and consumers should not be left in the dark.
   • Show consideration and respect for suppliers and consumers.
8. 8 Remain flexible. An idea popping up in your head may not be the best course of action. Respond to feedback and feedback from suppliers and consumers. You should always adapt to the specific needs of your customers.
   • Keep a close eye on all the links in the chain to determine the current state of affairs, as well as points on which additional work needs to be done. You can ask all parties questions about their satisfaction from working with you, presenting this in the form of an assessment or a questionnaire with questions.
9. 9 Your business practices should be transparent. It is good for people to know that they can trust the organization they do business with. Suppliers and consumers should understand how you do business and manage your cash flow.
   • If asked, inform consumers of your sources of supply. Many buyers may express an interest in this kind of information in order to decide for themselves if you are comfortable with them as a business partner.
   • Provide buyers with a cost structure so they understand where their money is going. This way they will not feel cheated if such information becomes available from another source.