Several of our readers have approached us with the idea of getting into the food-distribution business - dry goods and meat - as a wholesaler.

If the idea of opening a wholesale establishment has been lingering on your mind, you should be happy to know that it can be a very profitable business, and one which may be timely - considering the reduced spending power of many Jamaicans.

If executed in the right location and with a good plan, your idea just might fly.

The wholesaler offers packaged/refined food and household products at prices generally below those of similar, single items purchased in the supermarket.

Shoppers will expect to get good discounts for purchasing these items in bulk - or at least three of any one item.

Winsome Armstrong, business development officer with the Jamaica Business Development Corporation (JBDC) in Kingston, points out that those who come to your wholesale will definitely be in search of "value for money".

In order to meet their expectations, you will need to tap into a large-dealer network, which should be properly researched, before you rent space for your wholesale.

In general, to start a small business, you must have enough money to finance start-up costs, like inventory, rent - if building is not owned - employee wages, insurance, etc.

In most cases, this requires a small-business loan.

To acquire a small-business loan, having a solid business plan is crucial.

Armstrong points out that other things to be considered include, but are not limited to:

Knowing your target market needs.

Thinking of products that most people use. This will also assist in determining which brands you want to carry. Sell products that people always buy and products that are always in demand and don't need much maintenance.

Choosing an accessible location. This is a very important determinant in the wholesale's success or failure. Your market/customers must be able to reach you. Ensure as well that there is adequate storage, which allows for safe material handling.

Providing convenient parking.

Ensuring a clean environment that is spacious, comfortable and safe.

Finding distributors that are near to you, hence saving money on transportation. Distributors must be legitimate. Do not accept goods from shady sources. This can ensure your business's security also.

As a wholesaler, you would benefit greatly from buying straight from the source - for example, a soap factory - instead of a middleman.

This also will be another matter to be researched as you seek to provide the best goods at an appealing price to your market.

You should also publicise to friends, family, neighbours, etc, that you have entered the wholesale business, soliciting pointers that could save you time and money by avoiding mistakes they have made.

To help finance the business, seek partners with a competitive credit policy with favourable terms of payment, says Armstrong, and do business with the manufacturers who are willing to offer you the highest credit limit possible, as you seek to satisfy demand.

Email Winsome: winsomea@hotmail.com or info@jbdc.net.

There are also strategies that can be applied in order to gain a competitive edge in the market:

Capitalise on volume purchase - allows for better pricing. Goods can also be re-packed in smaller packages and add convenience and efficiency to your distribution to dealers.

Attend trade shows - sample new products. If you're interested, place your order immediately.

Locate other dealers/distributors for other products you want to carry. If you can buy straight from the manufacturers, do so. If not, find out who distributes their products and see if you can establish wholesale terms with them.

Competitive prices - offer more attractive terms to customers.

Convenient opening hours.

A high standard of customer service.

Speedy and accurate transactions.

Maintain contact with your dealers/distributors personally to ensure a strong and unbroken business relationship.

Practise efficiency and strive constantly for improvements.