I thought my wholesale business was unique. Turns out it’s really no different than any other and after teaching everything we know here at Vendrive, we realized there are some fairly common patterns – phases that each business must go through.

Going through these phases is a requirement and really doesn’t take any action from you. It’s just a natural progression of growth.

 

Phase One – Some capital, but not enough inventory

Every person I’ve come in contact with thus far has proven this to be true. Now, they can either have a lot of capital or very little. What makes them similar is the fact that they haven’t fully begun to source profitable inventory.

This isn’t a lack of knowledge (especially if you’re reading this blog!), but a lack of either action or commitment.

One of the biggest issues early on for sellers is not understanding HOW to source, but actually doing the work. It isn’t easy, although it’s simple and it’s quite boring, making you feel like you aren’t actually making any progress, although you are.

Once sellers break through this hurdle by committing to sourcing each and every day until they are increasingly good at it, they’re eventually moved into the next phase.

 

Phase Two – Maximizing capital

If you’ve made it this far, you’re kind of a pro. You’ve successfully implemented sourcing strategies and can consistently add new products/accounts to your business each and every month with relative ease.

Shifting from Phase One to Phase Two is the hardest, making finding success a very daunting task. Break into Phase Two, life seems to lighten a bit, streamlining takes hold and things seem to pull into organic momentum, although you’re making and have been making that momentum a reality.

Although this is a great place, we don’t want to stay here long and most won’t. Phase Two is the briefest phase as you quickly shift into Phase Three and are faced with your next hurdle to overcome – capital.

Note – Phase Two is a minor milestone that is a primer for the next phase. You probably will notice you’re in phase two for maybe a month at most.

 

Phase Three – Too much inventory not enough capital

An even better problem to have and one we all eventually end up facing. By successfully going through phases one and two, you’ve become incredibly good at adding profitable accounts, but at a rate that outpaces your spending abilities.

This is the exact opposite of the problem faced in Phase One – some capital but not enough inventory.

So by solving the problem in Phase One, you’ve essentially created the problem in Phase Three (you little devil you…). Depending on how much capital you were able to start with, this phase could come sooner or much later. The smaller amount of capital you have, the quicker you’ll hit this problem and vice-versa.

So how do we overcome Phase Three and break free from these phases all together? Two options – take less capital out of your business or add more in. Basically, do what I suggested here or find more money.

Finding more money is a different skill set and somewhat uncomfortable for many, but ultimately it’s an easy process and there are plenty of options.

Imagine having $50,000 worth of profitable inventory that you can’t purchase because you’re already spending all of the $30,000 a month you currently have available. By finding another $50,000 to bring into the business and assuming a 30% margin, that would mean another $15,000 a month for your business, or $30,000 if you read our 7-Figure Blueprint 😉

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