You have got the perfect business idea. You have completed the detailed business plan. You have found the ideal market replete with customers. You have accumulated the necessary funds. You have the best store location or the greatest website. You have every detail at hand, except one – the product source. Unless you plan to sell something you manufacture, you need to find a steady supply of the products you plan to sell. This is one challenge many entrepreneurs face when they try to translate their business idea into a concrete venture. Before you take any step in this regard, here are a few things you need to decide first.
One Supplier or More – How Many Does Your Business Need?
When you are starting out, it may seem that getting one product supplier is enough. Finding multiple suppliers and maintaining relationships with each may feel like an extra burden, especially if you are doing everything on your own. The problem is – this is often not a good idea for a small business, and especially a start-up. Find at least two suppliers who you can depend on. This will ensure that you have a steady supply of the products you want to sell in all circumstances. Even if one of the suppliers fails, you can depend on the other for this purpose. With this, you could avoid a situation where your business fails because you don’t have products to sell.
Local or Global – Which Category Works for Your Business?
Ask yourself – does a local or an international supplier fit your business? At times, a local dealer may be a better choice. For example, if you have a business that sells baby furniture, such as cribs, a local manufacturer or dealer could ensure that their products adhere to the safety standards implemented in your country. Again, sometimes an international product supplier may be a more suitable option for your business. This works if you plan to sell various products from different manufacturers, but use only a single source to get them. Make sure your choice corresponds to your business style and goals.
Trade Associations, Magazines and Events – Opportunities to Connect
Where do you look for product suppliers? An online search may be the easiest solution. But use it as a starting point, not as the only source for your search. Another good place to begin your search is the industry-specific print media. You can also find a list of the product suppliers from the national or international trade associations. A good example is the list of product suppliers available from the Australian Trade Commission. Keep in mind, this list is just the beginning of your search. The best way to do this is to attend trade shows and events where they exhibit their products. This gives you the opportunity to connect with the right people and source the right products.
Just a Retailer or a Wholesaler – What Would You Prefer to Be?
You may become a retailer for a manufacturer. But it makes more business sense to become a wholesaler instead. The reason – well, you get the products at wholesale price.
The ultimate goal of every business is to make money. When you can source the goods at wholesale price, it becomes possible to attain this goal.
Whereas there isn’t much you need to do to become a retailer, a manufacturer often has a specific procedure that you need to follow to become a wholesaler. You may require filling out forms and submitting references for this. Don’t fret; once you have completed the processing, you can start reaping the benefits.
Create a Relationship that Works – How Do You Do It?
Finding two or three suppliers who can provide the products you want to sell isn’t a onetime thing. After you have selected the businesses to work with, you need to cultivate the relationship. Begin with the basics; start by creating the right impression, that you are not just another seller, you mean business. Get samples of products from the suppliers you choose. Sometimes, you may get this free, but at times, you may have to pay for them. Keep in mind, your business would only be successful if you choose good quality products to sell. Don’t compromise on this; it could lead to serious trouble for a start-up.
The next task is to discuss the terms of the partnership with the supplier of your choice.
Even if you choose a local manufacturer you know personally, it is essential that you get the details of the business relationship into writing. Though no contract would hold good if the relationship fails, an agreement is always necessary. With adequate attention to details, it is possible to find a supplier who can stock up the shelves of your establishment or fill up the inventory of your online store. All it takes is patience, effort and research. Don’t rush into a decision. Make sure you choose a product supplier who complements your business setup.
