Wondering how to start a wholesale yarn business? We take you step-by-step from start to success.
Customer Profiles for Wholesale Yarn Startups
A lot of people associate yarn as a retail product of a bygone era when in fact, yarn has a major stake in the $30+ billion per year U.S. craft industry. When you combine that number with the commercial demand for yarn products, it's not hard to see how entrepreneurs can make a good living in yarn wholesaling.
Wholesale yarn customers range from large retail chains to small, independent hobbyists. Some wholesalers focus on selling exclusively B2B while others expand their customer base by offering attractive pricing to individuals.
The wholesale yarn industry is further segmented by yarn type. There will always be a market for high quality yarn used in the production of commercial fabric and clothing, but many modern buyers are expressing an interest in yarn that is made from recycled and environmentally friendly materials.
Strictly Wholesale or Wholesale/Retail Yarn Combination?
The decision to pursue a strictly wholesale or combined wholesale/retail startup depends largely on your personal preferences and business goals. Both approaches require the development of manufacturer relationships, but a strictly wholesale business model will also hinge on your ability to forge relationships with yarn retailers.
In a combined wholesale/retail approach, you gain the ability to sell directly to consumers. However, that ability has a price, namely the creation of first-rate ecommerce website and backend processes capable of handling a high volume of customer orders in addition to your normal wholesale customer load.
Revenue Optimization Tips for Yarn Wholesalers
Revenue optimization is a strategic goal for all yarn wholesale startups. But bringing additional money through the door can be a lot harder than it seems. One method for increasing revenues is to offer value-added services to your wholesale and retail customers. For example, by creating and distributing free project patterns to your customers, you can increase demand for your products and offer a useful resource to your B2B customers.
Another revenue optimization strategy for yarn wholesalers is to host special events that invite B2B customers and/or consumers to learn more about your products and the yarn industry in general. Arranging factory tours, sponsoring craft seminars and holding other special events have a positive impact on customer loyalty – which in turn, can result in higher sales volumes.
Creating Business Plans for a Wholesale Yarn Business
Does your wholesale yarn business have a business plan? If not, your company is lacking a critical business tool. If it's sound, your business plan will keep you new venture on course and help you avoid the pitfalls that plague other startup entrepreneurs.
To assist your efforts, you may want to consider enlisting the aid of a professional business plan writer.
Professional business plans can often be more effective than plans that are created in-house. Even so, we caution new business owners against removing themselves entirely from the business plan creation process.
Startup entrepreneurs are well advised to materially participate in the writing process, even after they have engaged a proven professional.
Assess the Competition
Before you open a wholesale yarn business in your area, it's essential to determine how you will fit in the competitive landscape. Try our link below to find competitors near you. Simply enter your city, state and zip code to get a list of wholesale yarn businesses in your town.
Before you open up shop, make sure you know what you will offer to your customers that provides a significant advantage over your competition's offering.
Learning More About the Industry
If you want to open a wholesale yarn business it's a smart move to learn as much as you can from somebody who is already in the business. If you think your local competitors will give you advice, you're being overoptimistic. What's in it for them?
On the other hand, an individual who has a wholesale yarn business in a different city may be willing to share their entrepreneurial wisdom with you, once they realize that you are not going to directly compete with them in their community. Indeed, many experienced entrepreneurs enjoy offering advice to startup entrepreneurs. In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.
How would you find somebody who runs a wholesale yarn business in a different locale who can assist you?
Simply, try our helpful link below, type in a random city/state or zipcode, and start calling.
Is It Easier to Buy an Existing Wholesale Yarn Business?
Tough decisions are what business ownership is all about. And one of the first decisions you'll have to make is whether to start a business from scratch or buy an existing wholesale yarn business.
Despite the appeal of a new business launch, the scales consistently tip in favor of buying a proven business enterprise. When you buy an established wholesale yarn business, you gain access to a functional business operation with a customer base and a steady revenue stream.
Entrepreneurs who are committed to a highly unique value proposition may need to pursue a startup approach. However, in today's business-for-sale marketplace, there is an abundance of wholesale yarn businesses worth considering.
Franchising May Be a Better Way to Go
Your chances of achieving the entrepreneurial goal of achieving your top business goals go up significantly when you franchise instead of doing it all on your own.
Prior to starting a wholesale yarn business, a smart move is to check out whether there are good franchise opportunities available that might alleviate your startup process.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding starting a business may be of interest to you.
If you currently own a wholesale yarn business, these resources will come in handy:
If you sell to wholesale yarn businesses, we've got better information for you elsewhere on our site. These resources are more appropriate for you:
If you are interested in starting a different kind of business, please browse our directory of guides below.