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Distributors are a crucial link in the commercialization of products. For manufacturers, they are strategic pieces in market layout; for retail outlets, they are indicators of product popularity. For distributors themselves, whether they can develop rapidly, adapt to market dynamics, and operate in a standardized manner is the foundation, or even the key, to becoming bigger and stronger.

In my view, for distributors to achieve standardized operations, internal management is the most fundamental aspect. This is the first step in standardized operations, apart from strategic planning.

We often see that distributors are quick, even efficient, in external business development. The key here is the rapid grasp of information and quick decision-making. However, when it comes to internal management, most distributors may only focus on whether employees collect payments on time and the quantity and quality of developed customers. They pay little attention to detailed management, thinking that as long as things look generally acceptable, it's fine. I believe that if distributors can start with internal management and gradually form a habit of standardization, their small shops may develop into enterprises more quickly.

Let's analyze the internal relationships of distributors. Early-stage distributors are mostly family-run, such as husband-and-wife teams or siblings, and internal management and decision-making rely largely on customary rules. The advantage is faster decision-making because most people are family members. However, as the business grows, outsiders may be brought in to assist, such as sales staff, administrative staff, or even managers. At this point, establishing a standardized internal management system is crucial to avoid interference from family members and to enable rapid development. Why? Because without institutional constraints, employees will consider interpersonal relationships when doing things. If they follow the rules, they might offend family members, leading to a mentality of "avoid trouble if possible." This creates a vicious cycle where balancing relationships becomes more important than doing work. How can a company develop under such circumstances? Therefore, having systems and rules in place reduces such psychological burdens and enhances employee motivation.

So, what does internal management mainly include? I believe there are two main aspects:

First: Establishment of Systems

As a small economic entity, a distributor doesn't need to establish grand systems, but they must have some. A widely circulated story is that when Zhang Ruimin went to Haier, he established about ten rules, one of which was "no urinating in inappropriate places." We can imagine the situation then, but these simple rules were probably most suitable for the company's development needs at that time. For a distributor, systems should be established gradually based on actual conditions. Adhering to the principle of high efficiency, I think the following four areas need to be standardized:

  1. Behavioral Norms

Although distributors start small, how many large enterprises didn't start small? The key is that distributors must have the ambition to grow. The behavioral norms of people within a company can indicate whether it is professional or has development prospects. Behavioral norms help everyone gradually form habits, such as warmly welcoming visiting clients, using polite language, and demonstrating professionalism when visiting downstream customers. In general, behavioral norms can be approached from the following aspects: language, demeanor (clothing, attitude, expressions, etc.), safeguarding company interests, and complying with company rules. Of course, these are general contents. When formulating your own behavioral norms, you should start from reality and avoid being too broad or empty.

  1. Reward and Punishment System

The establishment of a reward and punishment system is actually to strengthen incentive measures for distributor enterprises. We all know that the result of egalitarianism is that everyone is unwilling to work hard, as working more or less yields the same outcome. Therefore, for current distributor enterprises, a reward and punishment system helps stimulate employees' drive and meets the development needs of distributors under realistic conditions. Of course, rewards and punishments should be strategic. I think it can be done from two levels: first, material rewards, such as bonuses and sales commissions; second, spiritual incentives, such as monthly evaluations where winners receive not only material rewards but also spiritual encouragement, like a training opportunity, a few days of paid leave, or even a certificate of honor. Combining both wins employees' hearts.

The main contents of a reward and punishment system include: first, the overall reward principle, i.e., what is encouraged and what is opposed; second, detailed reward items and requirements, including forms and amounts of rewards; third, punishment principles and contents, mainly constraints on behaviors that may harm company interests.

  1. Attendance System

Attendance is also one of the constraint systems, aiming to ensure employees complete their work on time, with quality and quantity. For sales-oriented distributor enterprises, attendance is just a time management tool, not the primary means. Its purpose is to remind employees to arrive on time and ensure working hours.

  1. Business Standards

This is an important part of system establishment and a key factor in ensuring the competitiveness of distributor enterprises in the market. I think business standards mainly include the following:

  • Product Selection: To develop, distributors must choose suitable products. Distributors themselves need to have such judgment. If they can communicate with core employees, new products will face less resistance during promotion, mainly because employees participate in the product selection process.
  • Market Development Principles: This includes choosing which downstream customers to operate products with, how to win their recognition, which region to start with, which channel to start with, etc. There should be detailed standards and requirements. Of course, different products have different market development principles, so decisions should be based on actual conditions.
  • Market Management Principles: This includes delivery, returns and exchanges, and management of cross-regional sales (channel conflict).
  • Behavioral Standards for Sales Staff: This is fundamental. Only when you do well yourself can you influence others. This mainly includes work standards, daily operations, and management processes for sales personnel.
  • Internal Affairs Management: This mainly includes the management of support departments such as administration, warehouse, and finance. During the process of business standardization, it may be necessary to break their conventional thinking patterns, with the central purpose of meeting business development needs.

Business standards start from product selection, extend to market operations, and include company logistical support. Through this process, standardizing business ensures that all employee actions have a basis, gradually forming habits and then becoming standards, thus forming a unique internal management system for distributor enterprises.

The above four aspects basically set requirements and standards for employee behavior and actions. This is the foundation. However, having these rules alone cannot truly solve problems. Therefore, the execution of systems is what determines whether they are suitable and beneficial to the development of distributor enterprises.

Second: Execution and Management of Systems

The execution of systems ensures the normal operation of the organization. Without rules, nothing can be accomplished. Whether they can be executed depends on management. In any organization, people are always the first priority, and managing people is the most difficult task. In my opinion, people management is mainly emotional management because systems are rigid, but people are emotional. This is very important in the development of distributors because you are not yet strong. Rules and regulations are just a lever and a measuring standard. Emotional management of personnel facilitates communication and helps employees identify with the company from the bottom of their hearts. This identification reduces the rigidity in the management process and encourages employees to consciously uphold the "dignity" of the system.

Of course, during the execution and management of systems, you cannot blindly follow past practices. You should revise these rules according to market changes and even the company's development needs, aiming to keep pace with enterprise development. Management is not an end but a means for sustainable development. Overdoing it is as bad as not doing enough; it should be moderate.