How to Start Fertilizer Distribution Business
Entrepreneurs can initiate fertilizer distribution business
with a proper selection of products from any location.
Research and Plan for Fertilizer Distribution Business:
In starting fertilizer distribution business do some research.
Try to find out the major cash crops of your location. What are
the problems farmers are facing? What are the specific products
that have already an existing market demand? In addition, what
products and services they are lacking from the existing fertilizer
distributors. This research will help you to craft a business
plan more confidently.
A well-written plan will help you to convince investors that your
company is worth putting money into. What kind of fertilizer do
you want to choose such as chemical or organic fertilizer or both?
What will be your geographic region you want to cover? What will
be your promotional strategy?
Legal Compliance for Fertilizer Distribution Business:
Register your firm. Apply for a license from the states or local
authority. West Bengal state, for example, requires a marketing
license to do business in the entire state from the Directorate
of agriculture govt. of West Bengal.
To get a marketing license you should have a trade license from the
local body of your store and go down. Apply for a “certificate of
source” means a certificate given by the manufacturer, importer.
Consult with a small business attorney to craft a legal ‘Dealership
Agreement’. Joining a business association like www.faidelhi.org
will provide you the necessary information for business growth.
Operations of Fertilizer Distribution Business:
Find suppliers willing. Obtain quality products at a reasonable
price. You can go for import also in the case of bulk purchase.
Store fertilizers separate from any other component in dry
conditions. Provide pallets to keep the drums or bags off
the floor. Extra care needs to keep the floor damp proof.
How you distribute your products and services can affect your cost
and client satisfaction. Choosing the correct mode of transport,
striking a balance between time and budget constraints. Arrange
appropriate transport facility.
Promotion of Fertilizer Distribution Business:
Define your customer base. You can sell fertilizers to farmers,
nurseries, garden stores and Krishi Samiti groups directly from
Concentrate on field trials for the products. Focus on organizing
farmers meeting frequently. Farmers confidence and trust towards
your products are the main criteria for getting success in fertilizer
Requires a strong dealer network. Contact the dealers and retailers
in your area. You can start with capital of 5 lakh rupees onwards.
The minimum period needed to achieve in this business is 5 months
and expected gross profit is 30 percent.
Wishing you all the best,