st cost the buyers in the auto industry look to cut? The commission paid to the reps.

If you are counting on reps to build your business you better figure another way to go.

If you own a manufacturer’s representative business, your future may be dim.

But wait, I said distribution was key … is it? Yes!

How about convincing companies in the auto industry (that don’t compete) to hire you to exclusively look for new products to serve their specific needs? Find electrical products for one client, fluids management products for another, finish products and application equipment for a third. Create relationships on the other side of the table and get paid from a different party.

Maybe expand vertically. Instead of being a broker of products why not buy the best ones and resell them to the best customers? Make a profit instead of a commission.

I think distribution is fertile ground. Those in it now may not b

In my workshops and presentations I am often asked, “What’s the best business opportunity to go into today?”

My response is pretty much always the same. “It all depends on what you want to do, how you want to spend your time, what resources you have available, your background, and your objectives. These are just a few of the important questions that have to be answered before one can determine the best business opportunity.”

And then I watch the person - and everybody in the room give me the blank stare that says - “So what am I supposed to do with that? I want an answer that points me in the right direction. I want to know what I should do. I want to know what you would be looking to do.”

Okay. From my perspective I say distribution is the key to success. Focus on the distribution of a product or service before you do anything else.

What do I mean by distribution?

Distribution - in this instance - is what gets the product or service in front of the person or business that will buy it.

How do you get your new life preserver in the West Marine stores or all of the boat retailers or all of the marine catalogues? How do you get the veterinarians to buy or recommend your drug (in Canada they act as resellers) and then how do you get their clients to buy it? How do you get Home Shopping Network to buy your product and how do you help HSN get its audience to call up and buy?

Let’s take this question of the “best” business opportunity and my suggestion that distribution is key one step further. Suppose you, or someone you know, is:

a) contemplating buying or investing in an on-going business, or b) ready to spend money to develop an idea into a product or service for the market.

The most important issue to understand is how the product or service gets or will get in front of somebody who will buy it. And if that person is not the consumer or user of the product or service - but is in the middle - how do you get the person who will use it - to take action and buy it? If the answer to this question is not clear, if the method does not result in cash in the checkbook with only acceptable exceptions that are well understood by both parties and if the method does not have a strong likelihood of continuing success, then the business will have problems.

Did you know that in the book selling business, the typical terms of sale between the retailer (bricks and mortar type) and the publisher (the author if they are self publishing) give the retailer the right to return all unsold books for full credit - for an unlimited time? There are stories of publishers getting hit with millions of dollars of returns as long as a year after the book was “sold” to the retailer and because the publisher did not have the cash to cover the returns - it had to declare bankruptcy. Jeff Bezo saw the flaw in the system, realized that there was a lot of money to be made distributing books, and now Amazon has everyone copying it.

Therefore as you or your friend proceeds through the decision making process be certain all the distribution issues are covered.

Who are the key buyers and will they remain the key buyers? The Internet has put many intermediaries out of business or drastically reduced their importance. Stock brokers and travel agents are almost unnecessary, will real estate agents be next to fall? Anybody buying a business or designing a product or service that serves or depends on intermediaries may have a limited future.

Suppose you are considering buying a business or developing a product that serves the auto industry. The typical approach to reaching these customers was through manufacturers’ representatives. With the pressure to reduce costs steadily increasing what’s the first cost the buyers in the auto industry look to cut? The commission paid to the reps.

If you are counting on reps to build your business you better figure another way to go.

If you own a manufacturer’s representative business, your future may be dim.

But wait, I said distribution was key … is it? Yes!

How about convincing companies in the auto industry (that don’t compete) to hire you to exclusively look for new products to serve their specific needs? Find electrical products for one client, fluids management products for another, finish products and application equipment for a third. Create relationships on the other side of the table and get paid from a different party.

Maybe expand vertically. Instead of being a broker of products why not buy the best ones and resell them to the best customers? Make a profit instead of a commission.

I think distribution is fertile ground. Those in it now may not be

gets the product or service in front of the person or business that will buy it.

How do you get your new life preserver in the West Marine stores or all of the boat retailers or all of the marine catalogues? How do you get the veterinarians to buy or recommend your drug (in Canada they act as resellers) and then how do you get their clients to buy it? How do you get Home Shopping Network to buy your product and how do you help HSN get its audience to call up and buy?

Let’s take this question of the “best” business opportunity and my suggestion that distribution is key one step further. Suppose you, or someone you know, is:

a) contemplating buying or investing in an on-going business, or b) ready to spend money to develop an idea into a product or service for the market.

The most important issue to understand is how the product or service gets or will get in front of somebody who will buy it. And if that person is not the consumer or user of the product or service - but is in the middle - how do you get the person who will use it - to take action and buy it? If the answer to this question is not clear, if the method does not result in cash in the checkbook with only acceptable exceptions that are well understood by both parties and if the method does not have a strong likelihood of continuing success, then the business will have problems.

Did you know that in the book selling business, the typical terms of sale between the retailer (bricks and mortar type) and the publisher (the author if they are self publishing) give the retailer the right to return all unsold books for full credit - for an unlimited time? There are stories of publishers getting hit with millions of dollars of returns as long as a year after the book was “sold” to the retailer and because the publisher did not have the cash to cover the returns - it had to declare bankruptcy. Jeff Bezo saw the flaw in the system, realized that there was a lot of money to be made distributing books, and now Amazon has everyone copying it.

Therefore as you or your friend proceeds through the decision making process be certain all the distribution issues are covered.

Who are the key buyers and will they remain the key buyers? The Internet has put many intermediaries out of business or drastically reduced their importance. Stock brokers and travel agents are almost unnecessary, will real estate agents be next to fall? Anybody buying a business or designing a product or service that serves or depends on intermediaries may have a limited future.

Suppose you are considering buying a business or developing a product that serves the auto industry. The typical approach to reaching these customers was through manufacturers’ representatives. With the pressure to reduce costs steadily increasing what’s the first cost the buyers in the auto industry look to cut? The commission paid to the reps.

If you are counting on reps to build your business you better figure another way to go.

If you own a manufacturer’s representative business, your future may be dim.

But wait, I said distribution was key … is it? Yes!

How about convincing companies in the auto industry (that don’t compete) to hire you to exclusively look for new products to serve their specific needs? Find electrical products for one client, fluids management products for another, finish products and application equipment for a third. Create relationships on the other side of the table and get paid from a different party.

Maybe expand vertically. Instead of being a broker of products why not buy the best ones and resell them to the best customers? Make a profit instead of a commission.

I think distribution is fertile ground. Those in it now may not b

is not the consumer or user of the product or service - but is in the middle - how do you get the person who will use it - to take action and buy it? If the answer to this question is not clear, if the method does not result in cash in the checkbook with only acceptable exceptions that are well understood by both parties and if the method does not have a strong likelihood of continuing success, then the business will have problems.

Did you know that in the book selling business, the typical terms of sale between the retailer (bricks and mortar type) and the publisher (the author if they are self publishing) give the retailer the right to return all unsold books for full credit - for an unlimited time? There are stories of publishers getting hit with millions of dollars of returns as long as a year after the book was “sold” to the retailer and because the publisher did not have the cash to cover the returns - it had to declare bankruptcy. Jeff Bezo saw the flaw in the system, realized that there was a lot of money to be made distributing books, and now Amazon has everyone copying it.

Therefore as you or your friend proceeds through the decision making process be certain all the distribution issues are covered.

Who are the key buyers and will they remain the key buyers? The Internet has put many intermediaries out of business or drastically reduced their importance. Stock brokers and travel agents are almost unnecessary, will real estate agents be next to fall? Anybody buying a business or designing a product or service that serves or depends on intermediaries may have a limited future.

Suppose you are considering buying a business or developing a product that serves the auto industry. The typical approach to reaching these customers was through manufacturers’ representatives. With the pressure to reduce costs steadily increasing what’s the first cost the buyers in the auto industry look to cut? The commission paid to the reps.

If you are counting on reps to build your business you better figure another way to go.

If you own a manufacturer’s representative business, your future may be dim.

But wait, I said distribution was key … is it? Yes!

How about convincing companies in the auto industry (that don’t compete) to hire you to exclusively look for new products to serve their specific needs? Find electrical products for one client, fluids management products for another, finish products and application equipment for a third. Create relationships on the other side of the table and get paid from a different party.

Maybe expand vertically. Instead of being a broker of products why not buy the best ones and resell them to the best customers? Make a profit instead of a commission.

I think distribution is fertile ground. Those in it now may not b

ruptcy. Jeff Bezo saw the flaw in the system, realized that there was a lot of money to be made distributing books, and now Amazon has everyone copying it.

Therefore as you or your friend proceeds through the decision making process be certain all the distribution issues are covered.

Who are the key buyers and will they remain the key buyers? The Internet has put many intermediaries out of business or drastically reduced their importance. Stock brokers and travel agents are almost unnecessary, will real estate agents be next to fall? Anybody buying a business or designing a product or service that serves or depends on intermediaries may have a limited future.

Suppose you are considering buying a business or developing a product that serves the auto industry. The typical approach to reaching these customers was through manufacturers’ representatives. With the pressure to reduce costs steadily increasing what’s the first cost the buyers in the auto industry look to cut? The commission paid to the reps.

If you are counting on reps to build your business you better figure another way to go.

If you own a manufacturer’s representative business, your future may be dim.

But wait, I said distribution was key … is it? Yes!

How about convincing companies in the auto industry (that don’t compete) to hire you to exclusively look for new products to serve their specific needs? Find electrical products for one client, fluids management products for another, finish products and application equipment for a third. Create relationships on the other side of the table and get paid from a different party.

Maybe expand vertically. Instead of being a broker of products why not buy the best ones and resell them to the best customers? Make a profit instead of a commission.

I think distribution is fertile ground. Those in it now may not b

st cost the buyers in the auto industry look to cut? The commission paid to the reps.

If you are counting on reps to build your business you better figure another way to go.

If you own a manufacturer’s representative business, your future may be dim.

But wait, I said distribution was key … is it? Yes!

How about convincing companies in the auto industry (that don’t compete) to hire you to exclusively look for new products to serve their specific needs? Find electrical products for one client, fluids management products for another, finish products and application equipment for a third. Create relationships on the other side of the table and get paid from a different party.

Maybe expand vertically. Instead of being a broker of products why not buy the best ones and resell them to the best customers? Make a profit instead of a commission.

I think distribution is fertile ground. Those in it now may not be able to see the opportunities on the flip side and they may be willing to sell all or a part of what they have for less than you can make it worth.