The following parameters have to be looked into prior to taking up dealership of cement.
1) Location of Bussiness - place- This makes sense while initiating bussiness in respect of cement. One has to investigate the town, localities and cities where there is ongoing building construction activities and more the activities, more will be consumption of materials.
2) Choosing the branded product - In the cement- segment, there are a number of established brands such as ACC, Ambuja Cement, JK Cement, Reliance, Jaypee, Ultratech etc. You will have to look around the dealerships operating in your chosen areas in the sense with which products they are dealing with. You need to choose a different products if the same product is being used by other dealers. This is momerundum of understanding of the company - policy.
You may choose Ultra Tech or ACC in case of absence of such dealership.
3) Make contact with the rap ported contractors - In case, you are having close relations with the contractors, you will be approached to deliver the goods indicating the number of bags to be supplied to the customers.
4) Registration- This will be the foremost step while taking up dealership. You will have to secure Tax Identification No with the Income - tax authorities.
5) Rapport with the Bank - You must be sound in terms of financial transactions and in no case, you should be a defaulter while paying EMI or any other instalment taken from the Bank.
6) Make a buffer stock - This would be essential so that the work of the contractor does not suffer on that account. Shortage of material might tarnish your image.
7) Investment in your bussiness must be sound - You need to infuse around 10 lakhs of Rupees in you bussiness to take care of hiring a godown, investment securities with the companies and other liabilities.
In case of taking dealership in steel, more or less same efforts is to be applied by selecting any one of the following companies SAIL, Tata Steel, Electro - steel, JSW etc. You have to negotiate with any one of such companies for securing the dealership.