Tag Archives: starting a direct sales business

Starting your Direct Sales business and How to Finance It

Want to start your own business but do not have the money to do it?  Here are some methods to help finance your startup and get you going.

Direct sales can be a very exciting industry, and when you find the company that suits you, you are ready to jump in with both feet and get started.  Unfortunately, sometimes having the money to get started, even an amount as little as $20 can be difficult to find, but there are some things that you can do to help you with this.

Money cash

Money cash (Photo credit: @Doug88888)

Have a Party – One of the best ways to get started is to host your own party!  If you have found someone to sign up with that is local to you, see if they will come over and do a party for you and give you all the sales.  If your friends know this is going to be your debut party, they will likely come out and support you.  Not only does this get you your kit, but it also gets you started on any new consultant program that your company may offer.  Be prepared to sign on the dotted line the day of your party, or else the consultant that did your party will be within their rights to keep all sales and you won’t get the proceeds to signup.

Odd jobs – Can you do some odd jobs for friends, family or others?  Check your local classifieds for people needing help with various things like house cleaning, dog walking, lawn mowing or anything else you are capable of doing.  Before too long you could have the money raised!

Garage Sale – if the weather is nice, haul any unneeded items you have onto your driveway or lawn and try to sell it.  Once you get started sorting out your house, you will be amazed at much you can find to sell.  Remember that you will never get as much for your items as you think they are worth, for instance, books will sell anywhere from a nickel up to 50 cents (at least where I live).

Borrow – See if you have a relative or friend that might lend you the start up fee or help you in some other method.  Maybe you can ask a few different people to help you out.  In return, you will want to pay them back and you may want to offer them a discount on product or something else as a thank you.

Charge – Do you have a credit card with some room on it?  While it is always best to buy things with cash, you can put your kit on credit.  Make sure you take any money you make at the party to pay it back before you start paying interest on it.

Payment Plan – Does the company you are signing up with have a payment plan?  If so, use that.  Or you may have to choose a lower level kit than what you want, and work on building it up with profits.  There is nothing wrong with doing this.

While direct sales may be cheap to get into, sometimes cheap is still hard for some people, and they are joining a company to make money.   Don’t forget that there are additional costs in direct sales that you will have to have money to pay for, even if all you get are new catalogues.

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Waiting for your Direct Sales Kit

Congratulations on taking the plunge into direct sales.  Chances are you are pretty excited about getting started but have to wait a few days or a week or two in order to get your kit.  But there are some things that you can do to keep yourself busy while it is in transport.

Backoffice – Get comfortable with the computer system your company uses.  Log in, play around.  Enter a fake order to see how that works – just don’t submit it.

Manual – If your company has their manual online, go find it and read it.  While you are there, download the other documents they have available to look at.

Schedule Events – You should be scheduling as many direct sales events as possible in the first month to get your business of to a great start.  This is especially important if there are incentives in the first month or two for a certain amount of sales.  If you are not sure if there are benefits, ask your upline.

Debut Party – If your direct sales company is new to your order, plan a debut party at your house and invite everyone you know to attend.  This way they can see the product and plan their own party or it will cement their commitment.  You will want to be tracking your parcel to determine the best time to do this.

Contact Everyone – Think of everyone you know from all the areas of your life that you could possibly invite over.  People from work, from church, from groups you belong to, groups your spouse or children belong to, people you encounter often, anyone else you can think of.

Watch your Upline – If at all possible, attend an event with your upline to see how things go.  This will likely make you more comfortable when it comes to your own event.

Business Cards – Order your business supplies.  You can buy from your company or a variety of places.

Labels – Create labels for your products and your supplies.  I use a regular address label to put on the back of my catalogues (the catalogues tend to be glossy so stamps don’t work) and I use return address labels for the bottom of my products.

Meetings – Find out if your direct sales upline has meeting you can attend.  If you are not near your upline, you may be able to find other meetings in your area with other teams.  If this isn’t possible, see if there is phone training or other training available.

Money – Open up a separate bank account and credit card for your direct sales business.  This may seem silly, but if you are ever audited, you will be thankful.  Your bank likely has an option for a free bank account and some sort of free credit card that may also have points.

Taxes – Without getting into a lot of detail here, start thinking about taxes.  For the sake of this article, just accumulate everything in a box to deal with a bit later.

Organization – Figure out how you are going to keep organized.  Boxes, filing cabinets, envelops, etc.  All these are helpful. The dollar store can be a great source of supplies and you can put that receipt in your tax box!

While all these things seem cumbersome and a lot of work, several of them will only take a few minutes to figure out and get setup.  This way, once your direct sales kit arrives you will be ready to hit the ground running.

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