Depending on the nature of your entrepreneurial business, you may decide to distribute your product through a wholesaler, or distributor, to reach customers. Distributors typically buy product in bulk from producers and then locate outlets for those products, freeing up the manufacturers for other tasks. In addition, distributors may provide services such as warehousing, special displays, transportation, and restocking services for your goods. But choosing a good distributor is still your job.

Talking with your customers, suppliers, business consultants, and bankers who work with distributors can make the chore of finding a good distributor easier. Getting a referral from a knowledgeable source enhances your chances of making a good decision and selecting a company that is trustworthy, reliable, and interested in seeing your company succeed.