Zero to Sales: The First Steps for Tech Reseller Startups
- LMSPortals
- 10 minutes ago
- 5 min read
Breaking into the tech reseller business sounds appealing. The margins can be strong, demand is high, and you don’t have to manufacture products yourself. But going from zero to actual sales takes more than just flipping hardware or software licenses. It requires strategic planning, niche targeting, and execution.
If you're starting a tech reseller business, here’s how to move from idea to your first sales.
1. Understand the Reseller Model
Before you dive in, know what you're signing up for. A tech reseller buys products (hardware, software, services) from vendors or distributors and sells them to customers, usually with some value-added services like installation, support, or bundling.
Types of Tech Resellers
Hardware Resellers: Sell physical products like laptops, servers, networking equipment.
Software Resellers: Sell licenses for software solutions, often on a subscription basis.
Value-Added Resellers (VARs): Bundle products with consulting, integration, or support.
Cloud Services Resellers: Focus on SaaS, cloud infrastructure, and managed services.
Each model comes with its own dynamics, partners, and customer expectations. Choose one based on your expertise, capital, and access to vendors.
2. Choose a Profitable Niche
Trying to sell everything to everyone is a quick way to fail. Narrow down to a specific market where you can compete and grow.
Questions to Guide Your Niche
What industries do you understand well (e.g., healthcare, education, finance)?
Do you have existing contacts or experience in any sector?
Which vendors have programs suitable for small resellers?
Are there underserved markets with low competition?
Examples of viable niches:
Microsoft 365 and Teams integration for small law firms.
Cybersecurity software for schools.
Refurbished laptops for remote workers.
Pick a space where you can speak the customer’s language and offer tailored solutions.
3. Register Your Business and Handle Legalities
This isn’t the fun part, but it’s critical. You need to establish your business legally before vendors or customers will take you seriously.
Key Steps
Business Registration: Register your company and choose a structure (LLC, corporation, etc.).
Tax ID: Get an EIN from the IRS.
Reseller Certificate: Required to buy products tax-free and resell them.
Vendor Contracts: Understand terms before signing. Some may have volume requirements or upfront costs.
Consider working with a small business attorney to get your bases covered early.
4. Build Relationships with Distributors and Vendors
Resellers don't exist in a vacuum. You’ll need relationships with vendors (like Microsoft, HP, Cisco) or distributors (like Ingram Micro, Tech Data, Synnex) to access products.
Start Small
Big distributors can be intimidating and may not support brand-new resellers. Look for:
Distributor programs for startups (some offer onboarding support)
Vendor partner portals for entry-level tiers (e.g., Microsoft Partner Network, Dell PartnerDirect)
Niche vendors who want help penetrating local markets
Build credibility by making small but consistent purchases, communicating well, and following through.
5. Create a Value Proposition
Customers don’t just want products — they want outcomes. What makes your offer better than buying directly from a big box store or Amazon?
Define Your Edge
Do you offer configuration or installation support?
Do you provide industry-specific expertise?
Do you offer financing, leasing, or subscription options?
Can you offer ongoing service or support packages?
Put it into one or two clear sentences. Example:“We help small clinics in the Midwest upgrade their network security with bundled hardware, installation, and 24/7 monitoring.”
6. Set Up the Right Tools
Even if you’re solo right now, you’ll need basic infrastructure to run your business efficiently and professionally.
Must-Have Tools
CRM (like HubSpot or Zoho) to track leads and clients.
Quoting Tools to generate fast, clean quotes.
Accounting Software (QuickBooks, Xero) to manage invoices and taxes.
Help Desk System (Freshdesk, Zendesk) if you offer tech support.
Also, get a professional website and email setup — no @gmail.com for business communications.
7. Price Strategically
New resellers often make two mistakes: pricing too high (to make quick profit) or too low (to beat the market). Both are dangerous without a strategy.
Factors to Consider
Your Cost: Include shipping, taxes, and credit card fees.
Vendor MAP (Minimum Advertised Price): Don’t violate it.
Competitor Pricing: Know what others charge.
Your Value-Add: Don’t underprice your services.
Instead of racing to the bottom, justify your price with service, support, or speed.
8. Get Your First Customers
Here’s where the rubber meets the road. Don’t wait until everything is “perfect” — start talking to prospects early.
Tactics to Find Customers
Leverage Existing Networks: Reach out to contacts in your chosen niche.
Cold Outreach: Use LinkedIn, email, and phone calls to target businesses.
Partner with MSPs: Many Managed Service Providers want resellers to handle hardware/software.
Local Events: Attend or sponsor local business meetups or tech workshops.
Offer Pilots or Discounts: Consider a low-cost first engagement to build trust.
Focus on delivering an amazing experience for the first 3–5 customers. Testimonials
and referrals will follow.
9. Learn to Sell Consultatively
In tech reselling, you're not just taking orders — you're diagnosing problems and recommending solutions.
Consultative Sales 101
Ask about their current pain points.
Don’t pitch before you understand their setup.
Educate, don’t hard-sell.
Offer options, not ultimatums.
Follow up consistently.
Even if a lead doesn’t buy immediately, stay on their radar. Trust takes time.
10. Manage Inventory Smartly
Many new resellers tie up too much cash in inventory. Avoid this unless you’re in a high-volume game.
Tips
Dropshipping: Work with distributors who ship directly to your customers.
Just-In-Time Ordering: Only order when a client confirms.
Refurbished Equipment: Can offer high margins with low upfront cost.
Bundled Services: Sell “packages” instead of raw products.
Cash is king. Don’t let it sit in a storage room.
11. Track Metrics That Matter
Sales are just the start. To grow, you need to understand what’s working and what’s not.
Key Metrics
Sales Volume and Profit Margin
Customer Acquisition Cost (CAC)
Average Deal Size
Sales Cycle Length
Customer Lifetime Value (CLV)
Use your CRM and accounting tools to track these. Don’t make decisions based on gut — use data.
12. Reinforce with Support and Service
You’ll stand out by what happens after the sale. Set up reliable support even if it’s basic at first.
How to Deliver Post-Sale Value
Respond quickly to issues.
Offer ongoing maintenance or training.
Follow up periodically.
Offer upgrades or renewals.
Repeat business is far easier than new business. Treat every customer like a long-term partner.
Final Thoughts
Starting a tech reseller business isn’t easy, but it’s achievable with the right focus. Get clear on your niche, build vendor relationships, and focus on early sales and service. Don’t wait for perfection — start with what you have, deliver real value, and scale smart.
The first steps matter most. Nail the basics, and you’ll build a business that lasts.
About LMS Portals
At LMS Portals, we provide our clients and partners with a mobile-responsive, SaaS-based, multi-tenant learning management system that allows you to launch a dedicated training environment (a portal) for each of your unique audiences.
The system includes built-in, SCORM-compliant rapid course development software that provides a drag and drop engine to enable most anyone to build engaging courses quickly and easily.
We also offer a complete library of ready-made courses, covering most every aspect of corporate training and employee development.
If you choose to, you can create Learning Paths to deliver courses in a logical progression and add structure to your training program. The system also supports Virtual Instructor-Led Training (VILT) and provides tools for social learning.
Together, these features make LMS Portals the ideal SaaS-based eLearning platform for our clients and our Reseller partners.
Contact us today to get started or visit our Partner Program pages