Start A Telecom Products Distribution Business - Business Ideas

Updated: September 15th, 2022
Start A Telecom Products Distribution Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Interested in starting a telecommunication-related business? Consider becoming a telecom products distributor.

Telecommunication equipment includes public switching, transmission, and customer premises equipment. To become a telecommunication products distributor, identify the in-demand telecom equipment, and find a reliable manufacturer.

Starting a telecom products distribution business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell telecom products, or selling telecom products online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$60B
starting costs
$30.1K
gross margin
30%
time to build
720 days
growth
Organic social media
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$6,900

Employee & Freelancer Expenses

$151

$352

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$63

$700

Inventory Expenses

$350

$14,750

Vehicle Expenses

$2

$10,004

Training & Education Expenses

$0

$2,000

Website Costs

$13

$215

Food Business Expenses

$25

$500

Retail Business Expenses

$0

$950

Advertising & Marketing Costs

$75

$2,486

Successful Businesses

Business URL Rank

du

du.ae

21,457

Telecom News

fiercetelecom.com

46,073

TDS

tds.net

70,571

ethiotelecom

ethiotelecom.et

81,177

Hubbell

hubbell.com

81,422

WESCO International, Inc.

wesco.com

129,465

Sonic Gigabit Fiber Internet & Phone

sonic.com

132,502

Panduit

panduit.com

152,230

Total Telecom

totaltele.com

157,936

Mauritius Telecom

telecom.mu

177,095

Iridium Satellite Communications

iridium.com

183,316

Pros & Cons

Pros Description

Rewarding work

Starting a telecom products distribution business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a telecom products distribution business. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Telecom Products Distribution Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Unlimited income potential

With starting a telecom products distribution business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Cons Description

Crowded Space

Competition is high when it comes to your telecom products distribution business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A telecom products distribution business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Low margins

The gross margins for your telecom products distribution business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the telecom products distribution business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Work can be inconsistent

As a telecom products distribution business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.