How to make money trading
You will need
- - initial capital.
Analyze the market of your region. Find areas in which demand is high enough and possible supply does not meet the needs of the population.
Select the scope of trade, groups of goods that you will implement. When choosing the direction of trade, follow the analysis of the consumer market in your region.
Make a business plan for your commercial enterprise. It should reflect all major questions about the activities of the trade organization, calculations of costs, profits, profitability, analysis of competitiveness.
Register with the tax office as a trade organization. Engaged in trade can be both a legal entity and an individual entrepreneur. Choose the optimal form of organization of a commercial enterprise, based on data such as estimated sales, assets of the future company, etc.
Find potential suppliers and conduct preliminary negotiations with them about the conditions of cooperation. After you receive information about the conditions for the provision of goods, purchase prices, select suppliers that offer delivery of goods on the most favorable conditions for you.
Select retail space for activities. Try to choose premises with a low-cost rental if you plan to rent premises or purchase premises at a favorable price in places where your potential buyers are concentrated.
Increase the profitability of your commercial enterprise. This can be achieved both by reducing the purchase price of the product, and by conducting all kinds of promotions, sales, and the introduction of bonus systems. Constantly look for new sources of supply of goods in order to expand the range.
Analyze the demand, make the volume of purchases in such a way as to ensure a sufficient amount of goods in stock until the next purchase.
Remember that in order to trade in certain types of goods, you may have to obtain additional permits and state licenses. Do not forget to include the cost of their receipt in the business plan of the trading company.Otherwise, profitability indicators, expenses and incomes in this document will be distorted, which may lead to an incorrect assessment of trade profitability.
If some part of the goods sells poorly, is not in demand by the buyer, reduce the price, sell it as part of promotions or discount programs. In this way, you will be free from slow entry positions and free up assets for new purchases.