Starting a Buying Group
Starting a Buying Group in your business' sector is a great tool for creating competitive buying power, but it isn't always a clear road as to how to start it. That is where we come in. Using our collective experience of over 100 years dealing with buying groups we have developed a 3 Step Start-Up Process when starting new buying groups. This 3 Step Start-Up Process greatly increases the chances of your group becoming a successful and powerful tool for your Members.
We use a 3 Step Start Up Process when starting new buying groups that greatly increases the chances of your group becoming the group your members need and want to belong to.
Buying Groups are difficult to start, and even more difficult to grow to be large enough to become economically sustainable. For every one group that is successful, there are likely twenty that did not make it.
BGS has developed a “Likely to Succeed Scoring System” that consists of a series of preliminary background questions specific and data-driven to your industry. These preliminary questions are completed by you and or your investment partners for us, and you, to grasp the realistic potential of starting a buying group.
If your group's concept scores well, we will tell you and work with you and move to STEP 2. If it doesn’t – we will also tell you. Our experts have saved clients hundreds of thousands of dollars by simply identifying where buying groups work and where they don’t.
Through experience, we also know that the most successful buying groups began with one or a small group of founders that were passionate about growth for independents in their industry. Above and beyond just their own company's of personal financial gain. Screening for this passion is a key factor in the assessment of this first step in our start up process.
We offer this first step in our process at no fee or cost.
To begin: complete the STEP 1: Opportunity Analysis Form and we will contact you by email.
Development of a Business Plan
After our team conducts a thorough opportunity analysis with you and the opportunity proves to be a true potential, we will work with you and your potential investors to put together a detailed, executable business plan for starting and running your buying group. This business plan document can be taken to other investors and potential members to obtain the final approval to launch a new group. The business plan is an executable plan, which allows our clients to go forward with or without additional assistance from BGS.
The typical business plan would be tailored to each individual situation and would include:
A recommended corporate structure
Five-year financial projections with worst and best-case scenarios
Management and staffing requirements
Technology Platform recommendations
Legal agreement requirements
Brand identity, marketing and communications plans
Supplier program development strategies and priorities
Detailed operational processes and procedures
Projected start-up costs and timelines
Risk identification and minimization strategies
Implementing the Business Plan
We offer a full range of services to help your group execute on its Business Plan. You decide the avenue you want to take with no pressure.
The involvement can be as minimal as simply being there to help answer questions to a complete turn-key solution where Buying Group Services provides becomes the operator for your group, providing all staff and management through a managed services agreement.
BGS believes in long-term relationships. We recognize all groups are unique and their requirements are diverse. We are the ultimate customer-focused business – because we truly match our services to your needs!
Our 3 Step Start Up Process ensures that your group is setup properly and that your group is equipped with best practices moving forward!