How to Become a Reseller of Interiors

Interior resellers are not limited to one manufacturer.

A reseller is a business which buys a product directly from the manufacturer and sells it without altering it in any way. Resellers that do alter products bought from a manufacturer -- such as a computer store that adds a operating system -- are referred to as "value-added resellers" or VARs. Generally, resellers buy at a wholesale price and sell the products at a retail price to make a profit. Reselling interiors can be lucrative because of the diversity of manufacturers.

Instructions

1. Identify interiors manufacturers offering reseller programs. They can be found in trade magazines, by speaking with interiors retailers or through the American Furniture Manufacturers Association (AFMA). You may also contact local interior designers to find manufacturers with resale programs.

2. Estimate your start-up costs. Having identified manufacturers with reseller programs, calculate your initial buy-in of inventory. Add to the estimate the cost of leasing a retail space and having the space built-out or customized to sell interiors.

3. Get a business plan. Hire a certified public accountant to write a business plan, using your estimates as a guide. A business plan is generally required to obtain a business loan and states start-up costs, as well as to revenue projections for the first five years of the business.

4. Visit the Small Business Administration's website. Choose an approved lender in your area. Schedule a meeting with the branch manager or commercial loan manager in person. Provide a copy of your business plan and complete a business loan application. Return it to the manager and receive your loan.

5. Lease a suitable retail space. Find a retail space with ample room to display the interiors and accommodate large vehicles to deliver inventory.

6. Buy inventory. Complete the reseller applications from the various manufacturers. Wait for approval to begin ordering inventory.

Tips & Warnings

• Check with your local and state governments to determine if you'll need a business license.

• Apply for an Employer Identification Number with the IRS to open a business bank account.

• Typically, business loan providers will require the borrower to sign a personal guarantee and commit a down payment and/or collateral.

References

• "Bargain City, USA: A Reference Guide for the Collector, the Reseller, and the Bargain Hunter"; Debbie Lang; 2005
• Tribal Monsoon: Reseller Information

Resources

• American Furniture Manufacturers Association (AFMA)