How To Start A Wholesale Kitchen Supplies Business?
1. Kitchenware Business Plan
One basic foundation of every business idea is to conclude what product to promote and how to market it. In a country like India, business potential can be found in an endless number of products. The idea of wholesale business is one of the most profit-making ideas in India. In this format of business, the manufacturers sell their products to the wholesalers with a profit margin. Then the wholesalers sell those products to retailers keeping a profit margin as well.
It is the retailer who finally sells it to the consumers. Wholesalers have the advantage of selling their products both to retailers and as well as to the consumers, directly keeping a fair profit margin. This makes a wholesale business idea both successful and profitable.
2. Wholesale Kitchen Supplies Business
We will discuss a detailed overview of how to grow a successful kitchen appliance wholesale business, one of the most profit generating businesses in 2021.
1- Kitchenware Business Plan
It is essential to have a clear business plan to become successful in any business and the kitchen supply business is not an exception. We will cover the most important aspects of how to start a business selling wholesale items like kitchenware in this section of the article.
2- Name and type of Company
Choosing a proper name for your company is important. The name should always have relevance for what it stands for. Type of company can be a sole proprietorship, joint-venture, private limited or public limited, etc. It is also essential to check the availability of the web domain while selecting your business’s name.
3- Start-up and ongoing costs involved
To start this business, one requires a store space, employee, insurance, inventory, laptop or PC with high-speed data, cash registers, a sales system, and proper marketing. The store should have a stock/inventory for everything generally used as kitchenware like pots, spatulas, cookers, pans, convection ovens, bowls, ladles, cups, mugs and so on. The two major costs, among all other expenses that come first into the picture, are the advance amount you have to pay for the space you are taking on rent for the store and inventory cost.
Then from the end of the first month, the other ongoing costs needed to be fulfilled are store rent, salaries of the employees, monthly maintenance charge, insurance EMI, internet and other utility bills like water, electricity, and the monthly cost advertising. It is important how effectively you select your employees so that the amount spent on their monthly salary can substantiate the sales generated. A tip is to hire your employees in such a way so that it can help you to set up a wholesale business. It is beneficial to employ cafeteria managers from local hospitals, colleges, and schools.
3. Wholesale Kitchen Items Business Plan
Their existing network and connections may help you to increase your selling potential. Offer them the right salary they deserve as per the market standard and keep track of their monthly performance by using an app like OkCredit. All the ongoing costs mentioned above directly depend on the location of your store. The cost of the advance amount and monthly rent for the storage space can be avoided if you know how to start a Wholesale Kitchen Supplies business.
The cost of inventory is a fluctuating or variable cost. This is directly proportional to your monthly product sales. Besides, you must also consider an average cost per month for expanding the range of your new products, like including wooden kitchen utensils wholesale with the existing items. The cost of marketing shall depend on your desired amount of exposure for the kitchenware store, and you have to budget accordingly.
Target Market
The perfect customers for this business are the restaurant owners who are planning to buy kitchen utensils and appliances. They are the customers who are ready to spend a lump sum amount. The purchase managers of culinary institutes are also potential customers with a fair amount of buying power as these institutes need a large number of kitchen supplies regularly. Well, it is also advisable not to forget your small buyers who are common people. You must also set the price of your products at a competitive range compared to local markets to get into Wholesale Kitchen Items business.
Register Your Wholesale Kitchen Items Company
Once the name and type of your Company have been finalised, the next important step is to register your company following The Companies Act, 1956 to the concerned regulatory authority. Your company becomes legal only after this process is properly completed.
Tax registration
You must register your company at the office of the Registrar of Companies (ROC) controlled by the Ministry of Corporate Affairs for being able to submit the tax returns of your company. The amount of tax will be decided by the type, size, and turnover of your Company. You can check the different tax slabs mentioned on the websites of government authorities before finalising the type of company.
4. Bank Information For Wholesale Kitchen Supplies Business
After completing the process of company registration, the next step is to apply for a current account in the name of your company in any nationalised or private bank as per your choice. It is also important to apply for a dedicated credit card in the name of your company. These two are essential to protect your personal assets. It is advisable to keep your business account separate from your personal account. This will help you to save your personal assets in case your business fails miserably or your company faces bankruptcy.
Besides, business credit cards offer higher limits of credit and lower rates of interest compared to credit cards offered for personal uses. The current account offers more flexibility in the transaction and allows maintaining a zero balance for a certain period. These facilities are not available in case of personal or savings accounts.
5. Kitchenware Business Plan: Step-By-Step Guide
Business Accounting
Unless you maintain a detailed record of different sources of income and a wide array of business expenses, it is critical to track the actual profit and true performance of your business. It is helpful to use an accounting & ledger app like OkCredit to keep the records updated. This will make the job of filing tax returns a cakewalk.
License & Permits
Always keep your trade license and other permits up to date. Set up a reminder for their timely renewal at the local municipal corporation office. This will make sure that your company is never at fault in case of an audit.
Rent Agreement
You must possess a clear rent agreement mentioning the type of business and all other relevant clauses and NOC from the landlord for space you are occupying for your business store.
Business Insurance
The way permits and licenses are important for any legal business; similarly, it must have business insurance to function safely. There are several policies available depending on the types of businesses and covering risks accordingly. Business insurance protects the financial wellbeing of your company, especially in case of any covered loss.
Brand Definition
Your brand reflects your company, and it determines the popularity as well. A famous and well-marketed brand will help your business to be ahead of competitors. The logo plays an important role in branding, and hence it is required to put the necessary effort while designing the same.
6. Business Website For Wholesale Kitchen Supplies
It is inevitable to have an effective and well-designed website to sell anything in this modern era of the internet. There are more online customers in this post-pandemic situation, and the numbers will increase every day. It is always a good idea to slightly take a detour in business. It can increase your product range and as well as some additional profits.
When you are in the wholesale business of kitchenware, you can think of selling some auxiliary items related to your mainstream business like kitchen islands, cookbooks, cabinets, DVDs with cooking instructions, modern dining furniture. You can also arrange for onsite cooking classes and sell tickets for the same, provided you have ample space to do so. You need to hire an authentic cook for the cuisines you want to give lessons for. Hope this article inspires you to start a kitchen utensils wholesale business and make profits
