Are Your Channels of Distribution In Line With Your Business?

Your channels of distribution create the main connection between the value proposition of your products and your customers. Hence, your distribution channels are integral to your business model and marketing position.

Young companies focus on their first 5-10 direct customers. Your next task, how to reach 100 or 1,000 customers. Will it always be direct? Do you need to find a distribution partner?

Key Questions to ask yourself:

What role does your channels of distribution play in your business? If you only have one channel, does that meet your business model? Does having competing channels better serve your markets? Are you failing to reach all of your customer segments and thus leaving potential revenue streams untapped? New geographically areas can be reached with new channels. New vertical markets usually require new channels.

By forming a strategic alliance with several companies, revenue and customer base grow. Finding these key partners requires some research. Research how competitive products reach customers. Discover how your potential clients purchase their products. Can you use the same channels?

Next Steps:

Your business model describes your customers in specific vertical markets, and geographic targets. The distribution channels must overlap these targeted customers.

First step, talk with your current customers. Before you started supplying them products, how did they buy? Customers are a fountain of information.

Next, interview your current channels of distributions. Can they expand their operations? Why are they restricted? Research current partners and their competitors in different geographic markets.

Need help? If this sounds like a project that can add to your business model, and with which you would like help, then please contact us.  Our company has 30 years of experience in helping companies navigate the waters of forming strategic alliances.  We have been there, done that, and have the tee shirts to prove it.  We would like to help you be there, do that, and help you get the tee shirt, too.


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