Whether you’re running a “business empire” or a mom-and-pop shop, all companies have one main focus in common- the customer. All businesses strive to build loyalty, brand equity, and satisfaction with their customers so that they continue to come back for more. One way to achieve customer satisfaction is by choosing the right distribution channel, which can be a game changer for any business size, especially for smaller businesses. Small businesses need to find a strategy to attend to their customers wherever they are located. The right distribution channel is essential because it establishes that no matter where the customer is, they can purchase your products and receive a high degree of service from your business. When deciding on your distribution channel there are some factors to consider, including location, skills, and degree of control. So, how are you going to reach your customers?
The Right Location
Whichever channel you select for your business, it is important to consider how accessible it will be for your potential and existing customers. If you are selling your products locally, it is a good idea to choose a local retailer or distributor who is well informed about your market. On the flip side, you might want to start selling and expanding your small business across the country or even globally. Be sure to select a distribution network that offers coverage of your chosen markets and target location.
The Right Skills
Delivering high quality customer service is essential for all business ventures, which can be accomplished with the right distribution channel. It can be difficult to choose a third party distribution network- depending on what your product is, there are a variety of options for skillful distributors. For example, sales people could be the best decision if your product is intricate or highly priced. Another method is a direct sales team, which may be another option for your business if your consumer base is on the smaller side.
The Right Control
Control in any business venture is vital, but especially with the distribution channel you choose. It is a smart idea to initially check if the distribution network is selling products that will compete with yours. If this is true, then you should attempt to persuade the channel to give an advantage to your products over your competitors, or there is a possibility that there is a distribution channel that your competitors have missed out on. An additional factor to keep in mind is if the distribution network you choose provides the same level of high quality service. To ensure that your distribution network is up to your standards, have someone from your business supervise, conduct, and administer the production of the distribution channel. This is a major decision for your business because those in the distribution channel ultimately control your relationship with your customers.
Build Your Business with Lendr
The distribution channel you select for your small business dictates how your products are handled and the speed with which they are delivered to your customers. If you’ve found the right distribution channel for your company, but do not have the funds to afford it yet, Lendr can help! We can help transform your small business into a success by determining the correct funding for the right distribution channel needed to propel your business forward. Learn how your company can flourish by applying for funding now to take the next steps towards expanding your business growth. If you have any questions about our small business funding options, don’t hesitate to contact us today.