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7 Things to Consider Before Starting a Distribution Business

By Jason Lewis

Starting a distribution business in the combat sports and fitness industry can be a great opportunity for entrepreneurs who are passionate about these sports and want to make a profit. However, like any other business, starting a distribution business comes with its own set of challenges and considerations.

In this blog, we will discuss seven things you should consider before starting a distribution business in the combat sports and fitness industry.

7 Considerations for Starting a Distribution Business

  1. Conduct Market Research
  2. Get Past Legal Hurdles
  3. Choose the Right Distribution Channel
  4. Secure Funding
  5. Choose the Right Suppliers
  6. Create a Reasonable Pricing Structure
  7. Invest in Marketing and Sales

1. Conduct Market Research

Conducting market research is an important step for any business, including wholesale distributors. It is the process of gathering and analyzing information about the market, such as the needs and preferences of customers, the latest trends, and the activities of competitors.

Following are some pros and cons of becoming a Fitness and Combat Sports Distributor you may want to consider:

Pros Cons
Growing Industry - a significant opportunity for distributors to tap into this expanding market Seasonal Demand – seasonal demand can make maintaining a steady flow of business throughout the year challenging
High Demand - a high demand creates a steady stream of potential customers for distributors Inventory Management - Distributors need to maintain adequate inventory levels to meet the demand
Repeat Business - customers frequently need to replace or upgrade their equipment and gear High Competition - With the rise of e-commerce and online marketplaces the market has become highly competitive
Niche Market - distributors can specialize and focus on a particular area, becoming experts in that field Logistics and Shipping - If distributors are dealing with large, heavy products like fitness equipment it can become challenging


The next thing to ask is that “Is the right fit?” Whether the fitness and combat sports wholesale distribution business is the right fit for someone depends on their interests, skills, and experience. The wholesale distribution industry requires hard work, dedication, and strong business acumen.

Someone who enjoys negotiating, managing logistics, and building relationships with clients and suppliers may find it a rewarding career. However, someone who prefers working independently has a low tolerance for risk, or lacks the necessary business skills may find it challenging to succeed in the industry.

Ultimately, conducting thorough research and assessing one's strengths and weaknesses can help determine if a wholesale distribution is the right career path.

2. Get Past Legal Hurdles

Starting a distribution business comes with a variety of legal considerations. Before launching your business, make sure you obtain all necessary licenses and permits, register your business with the state, and develop contracts that protect your interests.

Consult with legal professionals who specialize in distribution to ensure your business complies with all legal requirements. Permits and licenses can include business operating licenses, zoning permits, sales tax permits, health and licenses permits and fire permits.

As a wholesale distributor in the fitness and combat sports industry, there may be several licenses and permits you need to obtain before launching your business. The specific licenses and permits you need will vary based on your location and the types of products you plan to distribute.

For example, if you plan to distribute dietary supplements or other health or fitness-related products, you may need to obtain specific certifications or licenses from the Food and Drug Administration (FDA) or other regulatory bodies.

Additionally, you may need to obtain a sales tax permit to collect sales tax on your transactions, and a business license to operate in your city or state.

legalities to look after in a distribution business

It's important to research the specific licenses and permits required for your location and industry and to obtain them before launching your business to avoid any legal complications or fines down the road. Consulting with legal professionals who specialize in distribution can also be helpful in navigating the complex world of licenses and permits.

3. Choose the Right Distribution Channel

Choosing the right distribution channel is a crucial decision for a fitness and combat sports wholesale distributor. It's important to consider the nature of your products, your target market, and your business goals when deciding on a distribution channel.

For instance, if you sell specialized fitness equipment and gear to gyms and fitness centers, you might want to consider using a wholesale distribution channel to reach a large number of potential customers. If you have a unique product that is highly sought-after by individual customers, you might consider using an e-commerce platform to reach customers worldwide.

Each distribution channel has its advantages and disadvantages. For example, retail stores can provide a physical space for customers to see and test products before making a purchase. However, the overhead costs of retail space can be high, and you may need to build relationships with individual retailers to get your products into stores.

On the other hand, e-commerce platforms provide a broad reach, but it may be more challenging to stand out among the competition. In addition, e-commerce platforms have lower overhead costs but may require a significant investment in online marketing and advertising to reach customers.

Ultimately, the choice of distribution channel will depend on a variety of factors, including the nature of your products, your target market, and your business goals. As a fitness and combat sports wholesale distributor, you may need to experiment with different channels to find the right one for your business.

Related Article: How To Secure Your Distribution Business By Overcoming The Threat Of Disintermediation?

4. Secure Funding

Securing funding is an important step in starting any business, including a fitness and combat sports wholesale distribution business. As a distributor, you will need capital to purchase inventory, cover operating expenses, and manage cash flow until you start generating revenue.

One way to secure funding is through small business loans. These loans can be obtained from banks or other financial institutions and typically require collateral or a strong credit score. Small business loans often come with competitive interest rates and fixed repayment schedules, which can be helpful for distributors.

Another option for securing funding is through crowdfunding, where a group of individuals contribute small amounts of money to fund your business. Crowdfunding is a popular option for distributors in the fitness and combat sports industry, as it allows them to reach a wider audience and build a community around their brand.

Finally, angel investors can provide funding to start-up businesses in exchange for an equity stake in the company. These investors typically look for high-growth potential and a solid business plan before investing but can provide significant capital for distributors looking to scale quickly.

Ultimately, the best way to secure funding for your distribution business will depend on your specific needs and goals. It's important to research all options and choose the one that aligns with your vision for your business.

Securing funds for your distribution business

5. Choose the Right Suppliers

As a fitness and combat sports wholesale distributor, it is important to carefully choose the right suppliers that meet your business needs. For example, a distributor of boxing and MMA equipment needs to have a reliable supplier who can provide high-quality and durable equipment at a competitive price.

If the supplier is not reliable and doesn't provide quality products, it could lead to lost sales and damage to the distributor's reputation.
To choose the right suppliers, the distributor can start by researching potential suppliers and comparing the prices and the quality of their products. They can also check reviews from other distributors and customers to determine the supplier's reputation.

Once the distributor has narrowed down the list of potential suppliers, they can negotiate the terms of the agreement, including payment terms, shipping options, and return policies.

It's important for distributors to establish strong relationships with their suppliers, as this can lead to long-term partnerships and benefits such as discounts and preferential treatment. Choosing the right suppliers can ultimately impact the success and profitability of the distribution business.

6. Create a Reasonable Pricing Structure

Creating a reasonable pricing structure is an important aspect to consider before starting a distribution business. Your pricing structure should be competitive with other distributors in your industry, while also allowing you to make a profit.

To create a pricing structure, you need to consider your costs, such as the cost of inventory, storage, shipping, and marketing. You also need to factor in your profit margin and your target market's willingness to pay for the products you offer.

For example, if you are a wholesale distributor of combat sports equipment, you may have to consider the cost of importing the products from overseas, storage and shipping costs, and marketing expenses. You need to set a price that covers these costs while also allowing you to make a reasonable profit.

It's also essential to conduct market research to understand what prices your competitors are charging for similar products. This will help you create a pricing structure that is competitive with other distributors in your industry.

7. Invest in Marketing and Sales

Investing in marketing and sales is an important factor for the success of a fitness and combat sports wholesale distribution business. Marketing and sales strategies help distributors to promote their products and services, attract new customers, and increase their sales revenue.

For example, a fitness and combat sports wholesale distributor can use social media platforms to promote their products by creating engaging and interactive posts, running ads, and collaborating with fitness influencers to showcase their products.

They can also invest in email marketing by sending newsletters and product updates to their subscribers. Attending trade shows can also be an effective marketing and sales strategy as it allows distributors to showcase their products to a large audience, network with potential customers, and gather valuable market insights.

Developing a marketing and sales plan that is tailored to the target market and distribution channels is crucial. It helps distributors to create a cohesive message that resonates with their target audience, choose the right marketing channels, and allocate resources effectively.

investing in marketing and sales

A well-planned marketing and sales strategy can help distributors to increase their brand awareness, build customer loyalty, and ultimately drive sales.

Related Article: How Predictive Analytics Impacts Your Distribution Business?


Starting a distribution business in the combat sports and fitness industry can be a challenging but rewarding experience. By following the above-mentioned seven key considerations, you can increase your chances of success and create a profitable distribution business.

Tags: Distributors

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