How to Start a Business As a Manufacturer Rep
If you enjoy selling, but would prefer to set your own hours and choose the products and services you represent, then starting a business as a manufacturers' representative may be your best option. However, as with any business, you need to be self-motivated and willing to do the required legwork needed to make your business a success.
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Instructions
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Evaluate your education and background. There are no specific degrees required to be a manufacturers' representative, according to the Bureau of Labor Statistics' Occupational Handbook. But most companies hiring manufactures' representatives seek those who have at least a bachelor's degree.
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Honestly appraise your skills in regard to being able to run a business.
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Choose an industry that you are familiar with; one that you would both enjoy and be proficient in selling the product. While it is possible to be a manufacturers' rep for several different industries, it is not advisable to do so.
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Set up your business. This involves everything from choosing a name for your company to getting state and local licenses. File for a tax ID from the federal government, and purchase basic equipment such as a dedicated phone line, fax machine and accounting software.
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Find potential clients who may use your services. Check guides such as the Thomas Registry or The American Manufacturers Directory. Search online using the industry you want to sell for and the word "manufacturer" as your search parameters.
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Contact the manufacturers. Often they will have information on their websites for prospective representatives to apply. Send a letter of introduction to the company you wish to represent. Your letter should: be addressed to a specific person. Include why you would be a good fit for the company. Follow up with a phone call requesting the manufacturer's information packet for independent sales representatives.
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Execute sales representative agreements. Every manufacturer you choose to work with will require a signed contract that spells out your obligations as well as those of the firm. Go over every agreement carefully as they vary by industry and individual company. Have an attorney review the contract before signing it if you are uncertain about any of the provisions.
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Advertise and sell the products and services you have chosen to represent. Your income will depend upon how well you can sell.
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Tips & Warnings
Choosing an industry where you have previous experience or contacts will make it easier for you to sell.
The Manufacturers' Representatives Education Research Foundation provides job certifications for manufacturers' representatives.
If you want to be taken seriously as a manufacturers' representative, create a website, or at least a web page with a copy of the products and services you represent
Consider joining professional organizations such as the Manufacturers' Agents National Association.
Before signing any agreement, verify that it does not include a non-compete clause preventing you from representing other manufacturers that sell similar products during or after your affiliation with the company making the agreement.
Most manufacturer representative positions are solely commission based. If you are accustomed to drawing a regular paycheck and having a guaranteed income, this will be a big adjustment.
Since you are not an employee, the way you report your taxes will change; contact an accountant.
As an independent contractor you will be responsible for your own health insurance and other incidentals.
