Another excellent reference source is the Wholesale by Mail Catalog, which lists 1,000's of wholesale sources with discounts of up to 90% off list prices. You can find out more about this valuable reference tool at the back of this book.  

To set yourself up as a business is very simple. All you need to do is contact your local county clerk's office for the details. The regulations vary from state to state, but generally you will be required to register your company with the county clerk and pay some small registration fee. In addition, you'll need to apply with your state's taxation department for a sales tax number, which allows you to collect sales tax from your customers and which allows you to buy merchandise that you are reselling, without paying sales tax yourself. These steps are very simple and will be explained fully by your local county clerk's office. 

After registering your company, the only other thing you need is professional stationery and business cards. This is vital, especially when you are just starting, because it is the main impression that suppliers will have of you. Sometimes, a business card alone is all that you need to enter a trade show. This should be your first investment in your business. (One excellent way to get both stationery and business cards is to take advantage of the special offer by National Wholesale Company for stationery and business cards, which is listed at the end of this book as part of the business executive package.) 

Once you have registered your business and have printed your stationery and business cards, you'll also want to open a separate business bank account, so that all your checks are written on a company account. Again, this goes a long way towards building credibility with suppliers. Another step to take is to install an answering machine, to handle calls while you are gone. The machine can give your company name as part of its message, even if you are starting out with your home phone. Eventually, you'll want to install a separate phone line, but this is not necessary in the beginning. Again, the answering machine can give added credibility to your business, in addition to making sure you don't miss any important calls. (And you can buy your answering machine or any other business supplies at wholesale prices from National Wholesale Company.)  

Now you are really ready to start doing business. You can approach any supplier and start buying samples at wholesale prices--any wholesaler will be happy to sell to you if you tell him you are thinking of marketing his product as part of your product line. 

Another way having your own business helps save you money is in taxes. You can deduct any legitimate business expense from your income. Many expenses you would normally make anyway, such as travel or food, can now be deducted from your income if they are related to your business activities. You need to consult with an accountant for the details, but this can represent significant savings. This gives you an idea of how you can save money by setting up your own business. In our next chapter, we'll discuss more about how to make extra income with all this knowledge about buying at wholesale prices.  

If you have additional questions about setting up a business, National Wholesale Company's free consultation service may be just what you need. You can sign up for their service at the back of this book. 

Tips on Negotiating with Suppliers 

One of the most important elements of increasing profits for you and your business is reducing your costs. This is as important as increasing your revenue. This area of cost reduction should never be overlooked, because it can yield very large profits to you. For your business to really enjoy the maximum profits, you should know some basics on negotiating prices with suppliers. That is the purpose of this chapter. 

Now that you have a list of suppliers for virtually any product you might want to buy or sell, it is time to discuss negotiating prices. All the ideas in this chapter have been gathered from conversations with executives in wholesale firms.