I Want to Start a Small Business

How to Start a Video Tapes & DVD Distribution Business

How hard is it to open a video tapes and DVD distribution business? We walk you through the ins-and-outs of this business opportunity.

Thinking about opening a video tapes and DVD distribution business? We tell you what you need to know to get started.

Video Tapes and DVD Distribution Business

Prospects for Video & DVD Distributors

Reports of the demise of the video and DVD have been greatly exaggerated. Sure, on-line video streaming services like Netflix and Hulu have taken a bite out of the DVD rental and sales marketplace. But even so, demand for DVDs continues to be strong, especially now that retail pricing has become much more competitive than it was in the industry's early days.

Traditionally, DVD and video distribution meant that emerging distributors needed to develop relationships with studios and stake a claim on the early distribution of movie titles. Although early distribution still represents a strong sector of the total market, entrenched competitors make it more difficult for startups to compete in this sector.

For many entrepreneurs, a more viable startup strategy is to specialize in closeout, liquidation and surplus DVDs as well as video games and Blu-Ray. Distributors can acquire these items at rock bottom prices, allowing retailers to market them at extremely attractive price points. Since many of these titles are no longer available through online streaming services, consumers are receptive to impulse purchases of their favorite movies.

Tips for Breaking Into Video & DVD Distribution

Whether you intend to participate in early distribution or catalogued titles, breaking into the video and DVD distribution game won't be easy. Here are a few tips to help your startup gain traction in the industry.

  • Commit to a business model. Entrepreneurs in video and DVD distribution can't afford to take a "wait and see" approach to the marketplace. From the outset, you need to commit to a specific business model based on opportunities in the marketplace and other factors. The ability to identify and execute effective business models is a business leadership skill that you'll need to practice and refine throughout your entrepreneurial career.
  • Online resources. The best video and DVD distributors leverage technology to achieve their sales and marketing goals. Specifically, you will need to create and maintain a high quality business website to compete in today's market. At a minimum, your website will need to feature a virtual catalog and easy-to-navigate ordering procedures.
  • Shipping. Far too many DVD and video distributors suffer the consequences of overlooking shipping requirements. Retailers and wholesalers expect to receive their shipments in a timely and reliable manner - a feat that may be difficult to achieve when your startup experiences rapid growth. Shipping and logistics solutions can help, but in the end, you will need to invest personal attention in your company's order fulfillment routines to ensure your customers' complete satisfaction.

Best Practices: Business Plans for Video Tapes & DVD Distribution Businesses

In a startup video tapes and DVD distribution business, there is no substitute for a high quality business plan. The effort you invest in the creation of your plan now will pay off later in lender responsiveness, investor attention and strategic confidence.

The most effective video tapes and DVD distribution company business plans include a comprehensive chapter on finances. The financial chapter of your business plan is one of the first places investors and lenders look, so it needs to contain forecasts and budgets that are rooted in business realities rather than your personal best case scenario.

Subsequently, a thorough understanding of business plan financial basics is a prerequisite to effective business plan writing for video tapes and DVD distribution businesses.

Evaluate the Competition

Well in advance of opening a video tapes and DVD distribution business in your town, it's worthwhile to see how many competitors you have. Use the link below to generate a list of competitors in your area. Just enter your city, state and zip code to get a list of video tapes and DVD distribution businesses in your community.

If there's too much competition, it may be wise to consider starting the business in a less competitive marketplace.

Finding a Non-Competitive Business Mentor

If you are interested in starting a video tapes and DVD distribution business, it's a wise move to learn as much as you can from somebody who is already in the business. It's very unlikely that the local competition will talk to you. Why would they want to educate a future competitor?

On the other hand, an individual who has a video tapes and DVD distribution business in a different city may be more than happy to give you a few tips, as long as they don't view you as a competitive threat. 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.

Where does one find a video tapes and DVD distribution business founder on the other side of the country to talk to?

Easy. Find them using our link below and start calling until you are successful.

Financial Benefits of Buying a Video Tapes & DVD Distribution Business

Startup video tapes and DVD distribution businesses carry a host of financial risks and concerns. Without an operational history, it's hard to predict how your startup will actually perform in the marketplace.

Financial risk management requires you to at least consider the possibility of setting your startup plans aside to explore acquisition opportunities. Many entrepreneurs buy an existing business for the sole purpose of tapping into the financial benefits of an established customer base.

But most importantly, existing video tapes and DVD distribution businesses have documented financial histories. Although you can create pro forma earnings and financial statements for a startup, a business-for-sale should have a well-documented, multi-year history of financial performance.

Consider Buying a Franchise

Franchising is a smart move for entrepreneurs just getting started in small business ownership. The benefit of joining a franchise network is that you gain access to a proven business model and the resources you need to survive beyond your critical first year of business ownership. Today's franchises offer a range of opportunities for ambitious startups.

For more information about video photography franchise opportunities, click on the link below to explore our franchise directory.

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