How to Start an Industrial Supplies Business Online
Welcome to the Business Ideas section. Watch this video, I’m going to give you a quick start guide on how to start an industrial supplies business online. Over the last decade, the industrial supplies industry has experienced phenomenal growth. If you’re looking to make some money and make a difference in business, you should consider starting an industrial supplies business.
Industrial supplies companies have benefited from increased demand for equipment and supplies needed to manufacture medical devices. The Industrial Supplies industry, which sells a range of general-use products for manufacturing and repair processes, depends on demand from a variety of sectors. Therefore, industry performance is tied to overall macroeconomic conditions. The industry has seen a small but steady growth year over year average about 5.2%.
Your company will be selling general-use supplies for manufacturing and warehousing industries. Supplies include abrasives, barrels, boxes and crates, industrial containers, industrial diamonds, packaging material, printing ink, power transmission supplies, mechanical rubber goods, ropes, valves and welding supplies.
Market Size: $95bn
Number of Businesses: 12,410
This Industry Employs: 116,518 people
So, here’s what you’ll need to get started:
Step 1 - Get a Business Plan
If you have no idea how an online business is supposed to operate or maybe you are a first time online business owner, I'd recommend downloading an eCommerce business plan from BPlans.com. Their plans outline exactly how online businesses work and what you should expect.
Step 2 - Find a Supplier
There are two methods to start this kind of business. You can find drop ship suppliers or buy and warehouse your own inventory. Either way, the supplier research process is still the same.
If you want to get started right away and you don't have a lot of money to buy inventory, you'll want to head over to google and type in these words, "dropship industrial supplies" or "industrial supplies dropship program".
This will give you access to thousands of products to sell in your online store right away, without actually needing to buy any of them. If you do have some money and you want to manage your own inventory and keep products in your own warehouse to ship, just google the words "wholesale industrial supplies". These search results will display companies where you can buy in bulk from.
Once you find and choose your suppliers, proceed to step 3.
Step 3 - Choose a Name & Register Your Business
Now, when you've got that sorted, it's time to officially register your business. You won't be able to buy wholesale products or work with a drop ship supplier until you complete this step. You'll need to register & apply for a federal EIN Number, and form an LLC or Corporation.
Depending on what state you are in, you will likely also need a reseller or retail merchant certificate as well. This allows you to buy products, tax free. I recommend using MyCorporation.com, as they do have a variety of packages to choose from, but their most basic package will get you started right away.
Legally Incorporate Your Business Today
Step 4 - Open a Business Bank Account
Now, since you're going to be getting all this money, you'll need somewhere to put it. It's pretty easy to open a business bank account, but they won't get you setup without having the legal incorporation paperwork and the EIN number that I just spoke about. You can work with a local bank that you already use or you can just choose a new one.
Step 5 - Buy Website Hosting
The next step is to buy web hosting. I always recommend choosing Bluehost because they are the most reliable for e-commerce stores. You also get a free domain name, a free ssl certificate and access to 24/7 tech support. So, you really can't beat it.
Buy eCommerce Webhosting with Bluehost
Step 6 - Work with an E-Commerce Web Designer
Once you pay for a website hosting plan with Bluehost, you'll get your login credentials.
You'll want to save that information and deliver it to the web designer in the next step. If
you don't know about Fiverr, it's a company that sells affordable web development and marketing services that get done really quick.
You just type in what you want in the search bar, and it will reveal tons of people who are willing to help you get a website up in less than 3 days. Once you choose the person you want to work with, give them the Bluehost login details and communicate your vision and plans for the website.
Find a Website Designer on Fiverr
Step 7 - Setup a Merchant Account to get Paid
While they are working on your new website, you'll need to activate a merchant account for your customers to pay you through. Many businesses use paypal, square or stripe. I personally like Square, they make it super easy for me to accept payments online via my website or over the phone. The account with Square is free, so once you signup, give these login details to the web designer to complete the payment integration process.
Signup for a Free Square Payments Account
Step 8 - Get Logo & Online Marketing Materials Designed
Finally, you'll need to start spreading the word about your business. A good place to start is getting a logo, social media graphics and online marketing materials created. For eCommerce branding, I recommend 99designs because the process is quick and painless and you actually get what you want and for marketing materials, I like envato, because they literally have tons of graphics for each and every single kind of business, on demand.
Get an Industrial Supplies Logo and Graphics
Get Industrial Supplies Business Marketing Templates
Step 9 - Create a Money Game Plan
Since you now own an industrial supplies business, you can choose from a variety of items to sell. The most popular and profitable products are safety jackets and helmets, construction tools and test instruments, cleaning and janitorial supplies, metal working and fabrication tools, and lighting and electrical equipment.
You’ll want to diversify your product offerings because this will help expand your customer reach. To maximize your profits, you’ll want to add a healthy mix of products. You can also sell tapes, adhesives and lubricants or material handling equipment.
Step 10 - Be Prepared for Startup Cost
Now, I know you're probably wondering...What's the price tag on this baby? Startup costs for this kind of business, using the drop ship method usually starts at $500-$1500 on average, but if you're planning to fund and warehouse your own inventory, be prepared to drop the big bucks!!! If you liked this video or you know someone who needs to see this today, tag a friend, hit like or give it a share. Until next time guys, take care!
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About Adella Pasos
This Entrepreneur and Marketing Expert has shared her passion for growing brands from the ground up. She’s worked with Startups, Small Businesses, Fortune 500 Corporations and Entertainment Talent to help them recognize the value of marketing, and give her clients the ability to access their niche market via online, social media, mobile, merchandising, and events.
She hosts the What's Your Game Plan TV show features: Free Expert Advice, and Growth strategies for Business Owners Across the Globe. Access thousands of FREE Tips, Trends & Tools to Move Your Business Forward!