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Defining the Distribution Channels for Your Business Startup

Whether you are still developing your business idea or already know exactly what you want to do, it is important to define the best distribution channels for your product, for your customers, and for you. The distribution channel is the way your product gets to your customer. Traditionally, businesses relied on a single distribution channel. These days, the most successful startups use multiple routes to reach a broader customer base.

For some products, the route to getting it into customers' hands is self-evident. For specialized, service-only ventures, you or your employees will personally deliver to the client, either on-site or at your place of business. Selling retail products, on the other hand, allows multiple options for distribution -- online sales, brick-and-mortar storefront, direct sales through sales reps, etc. Consider the distribution routes used by your closest competitors. Are they using the most effective channels? Is there any way to modify or improve on the standard methods that will still be appropriate for your product?

Your target customers also play an important role in the distribution channels you select. If you are selling directly to the end user, you probably have more options than if you are targeting distributors to market your product. Think about it from your target market's perspective. What is the easiest way for them to access your product? Under what circumstances are they most likely to be looking for what you offer? If it is easier for your customers to buy from you than your competitors, they will come.

Your own work style and personality are also relevant in considering distribution channels for your product. If the idea of spending your days chatting up strangers is distressing to you, then a brick and mortar storefront is probably not the best option. If spending countless hours in front of your computer sounds agonizing, avoid any wholly web-based options. Be honest about your preferences -- one of the greatest advantages of starting your own business is the freedom to choose how you get work done. Don't sabotage yourself by choosing a business that requires you to be out of your comfort zone for every sale.

Many modern startups have a broad range of choices about how to distribution their products. Consider all three factors -- your product, your customers, and yourself -- before deciding the best routes for your business. If possible, consider developing multiple distribution channels within your startup, even if you only start with one initially. The more ways your product can get to your customers, the bigger your potential market.

About the Author

LaunchX.com is dedicated to training entrepreneurs to turn their good ideas into great companies. The LaunchX System provides step-by-step education in the mindset and skill set entrepreneurs need to succeed. Our program includes intensive seminar training, key business software, and specialized workbooks that teach you the fundamental skills you need to achieve your financial and worklife goals through entrepreneurship. Register today for our introductory course and see what LaunchX can do for you!