Starting A Distribution Business From Scratch In Under 5 Months (with Kevin Finley) | Ep. 20

Most entrepreneurs believe the distribution market is a "solved game" dominated by giants like McKesson and Medline. Kevin Finley disagrees. In less than five months, he launched Keystone Supply Group and is already profitable by doing exactly what the legacy players refuse to do. This episode is a masterclass in supply chain resilience and aggressive, scrappy sales tactics for new distributors.Kevin reveals how he leverages public government data to build prospect lists from zero and why he purposefully avoids net-30 terms to secure unbeatable pricing. He explains the critical role of "secondary distributors" when Tier 1 supply chains break down, citing the recent Baxter manufacturing crisis as a prime example. If you believe the market is too crowded for a new player, this conversation proves that agility, cash flow, and direct manufacturer relationships still beat massive scale.ㅤAbout the Guest: Kevin FinleyKevin Finley is the Founder and CEO of Keystone Supply Group, a rapidly growing distribution firm based in Wayzata, Minnesota. With a background forged in the high-stakes pressure of COVID-19 procurement, Kevin specializes in bypassing traditional supply chain bottlenecks to serve healthcare and industrial clients directly. He champions a "Partner in Preparedness" philosophy, emphasizing transparency, speed, and the elimination of unnecessary intermediaries to deliver essential supplies when Tier 1 distributors fail.ㅤInside the Episode: The Knowledge MapThe COVID Wake-Up Call: Kevin explains how the pandemic exposed massive lapses in the traditional supply chain. He realized that when the "big guys" run out of stock, the entire market breaks down, creating a significant opportunity for agile secondary distributors.Capitalizing on Crisis: The conversation shifts to the recent impact of Hurricane Helene on the Baxter manufacturing plant. Kevin details how smaller distributors can step in to support downstream clients, such as surgery centers, when national supply lines are severed.The "Ripple Effect" Sales Method: Starting with zero customers requires scrappy tactics. Kevin describes how he dissects a single win—such as selling gloves to a New Jersey wholesaler—to immediately identify and pitch similar businesses in the same region.Hacking Government Data: You do not need to buy expensive lists to find leads. Kevin explains how he uses tools like BidNet and BidPrime to find public bid requests, using specific keywords to identify exactly who is buying which products right now.State vs. Federal Bidding: If you want to enter the government market, do not start with federal contracts. Kevin advises focusing on state and local bids first, where the paperwork is manageable (5-10 pages) compared to the 100-page complexity of federal RFPs.Building Systems to Scale: Kevin discusses the importance of documenting every process before hiring. He shares his strategy of recording screen captures for invoicing and shipping to ensure new hires can replicate his work without constant supervision.Profitability Over Revenue: While most distributors chase growth through credit terms, Keystone prioritizes immediate cash flow. Kevin explains that prepaying manufacturers allows him to negotiate a lower cost of goods sold (COGS) than competitors on net-30 terms can match.ㅤResources & MentionsTools: BidNet Direct, BidPrime, LinkedIn Sales Navigator, GovSpendBook: Buy Back Your Time by Dan Martel