Potential members of your distribution channel may vary depending on whether your product is Business Goods or Consumer Goods. (Please check diagrams on the web site of University of Dayton; Consumer Goods Channels, Business Goods Channels.)

A small company usually has to work harder to focus limited resources, especially with distribution and sales force options. Sometimes, especially at the early stage of development, the only sales force option can be for the owner to do it himself or herself. But its distribution channels and accompanying sales force should be matched against company marketing objectives. If a company wants to sell a high-quality product to upscale customers, the company should distribute the product through upscale channels that cater to the exclusive target group. If a company is aiming at foreign countries, the company should use a distribution channel which covers those geographical areas.

Further, it may be wise to prioritize the orderly development and attack each distribution channel in order of easiest entry and least competitive resistance. The SOHO guidebook provides the following key factors to prioritize your distribution channel.

• financial resources and risks ("How much money do we have to risk against our objectives and marketing programs?")
• competitors' strengths and market share ("Are they big enough and mean enough to hurt us, and what are their objectives?")
• management experience by channel ("What do we know about each channel's opportunities and threats?")
• product positioning to target buyers ("Will the strengths of our product uniqueness help sell it to interested buyers and can we communicate our uniqueness effectively?")