In most circumstances, incorporating a firm entails issuing shares. Therefore, a business owner must consider how many shares of stock the firm will require both at the time of incorporation and in the future as the business expands and attracts new investors. The articles of formation specify how many shares the firm is permitted to issue. The leadership will decide how many of those will be distributed in reality.
To summarize, the maximum number of shares a business may lawfully issue to investors is known as the “approved shares” or “authorized stock.” The company’s articles of incorporation provide information about the permitted share count. The figure is also displayed in the balance sheet’s capital accounts section.
Why become an authorized dealer?
An individual or business that has been permitted to sell a manufacturer’s goods is known as an authorized dealer. A well-known brand has granted this merchant a franchise to represent and market its goods.
Whether you wish to launch your own business or add reselling to your existing operation, there are various benefits to becoming an authorized dealer.
- it enables you to get expert certification;
- It offers you cash assistance;
- it allows you to sell goods from a well-known company;
- It enables you to employ a famous brand name.
If your business complies with specific conditions, you are permitted to sell goods from well-known brands in bulk to commercial customers online or in physical stores. The criterion you must meet will be disclosed to you by the manufacturer or service provider.
Now that you know the benefits of working for an established brand as an authorized dealer let’s examine the distinction between authorized and unauthorized dealers.
Licensed versus Unlicensed Dealer
Knowing the difference between approved and illegal dealers while purchasing and selling products is crucial.
Gaining authorization as a distributor provides the following benefits:
- a business arrangement with a producer;
- formal rights to sell products bearing the brand;
- acknowledgment from the brand;
- a positive image as the company ensures the authenticity of its products;
- The manufacturer’s warranty covers the goods.
Here are some points to help you start up:
Select an industry.
Choose whether the electronics, food, apparel, or shoe industries best fit you and the industry you wish to enter. There are dealers in practically every retail sector, giving a wide range of options.
Locate the proper place
Distinct distributors employ various tactics which affect how they operate. Even if you can launch your company from home, you’ll still need a warehouse to keep your goods. Choose affordable warehouses that are close to your clients first.
Lastly, get enough inventory.
The quantity of stuff you’ll require depends on the sector you choose. First, calculate the bare minimum amount of merchandise you should keep on hand. Remember that if you acquire too much inventory, you risk not selling it all, or if you need more merchandise when your clients need it, they might use your competitor’s service.
A business that is officially permitted to sell goods from a specific brand is known as an authorized dealer. It enables you to offer clients the goods or services of a reputable company and gain access to their existing clientele. Also, Authorized dealers are preferred by well-known brands because they provide supply chain transparency, consistent pricing, and higher profits.