Congratulations, you have already actualized your concept and turned it into a business. You even found the perfect niche market that could bring you incredible profit margins if all goes well. You are through with the most critical first step of running a business. But there’s one tiny problem. You don’t have the foggiest idea of where to source materials for your business to run. How do you solve this?
Develop a Long-term Relationship with Manufacturers
For most retailers, you need a finished product to keep your business alive. You could approach the manufacturers directly and request for a contract that ensures you are in business all through. This method eliminates middlemen who could be trimming a significant part of your profits. Unfortunately, most manufacturers require that you order a certain minimum order quantity in their contracts. Consider looking for innovative ways that keep products on the move to purchase products in bulk from the manufacturer and establish a trustworthy relationship.
Do It Yourself
Under this category, you are probably capable of making your own products and act as the lead on the supply chain. It’s however rare for a large and medium-sized business to make their own products since the demand for products is always high. Most people who decide to make their own products are often in the art and craft industry. If you choose to make your own products consider looking for an easily accessible source of raw materials. Also, work out how much time you need to work on a product to measure how you will meet demand.
Negotiate the Best Deal
While researching, you have probably found out multiple sources that could supply your products. Getting the best deal is vital in creating decent profits for your business. Consider negotiating the pricing, delivery terms, your return options, and the minimum number of units to order. Ensure that the products are of good quality before entering into a contract with the sole provider.
Visit Trade Shows
Trade shows expose you to numerous potential options of holes that can source your products. You are also provided with a forum to interact with a variety of suppliers, compare their terms and conditions, and gauge if the deals are worth the take. You could even purchase the same material; for instance, a milling machine coolant from different suppliers, test it and gauge which one provides better service.
Sourcing is arguably a sensitive part of the production process. Do it carefully to protect your business, product, and reputation.
Emma is a freelance writer based out of Boston, MA. She writes most often on health and education. When not writing, she enjoys reading and watching film noir. Say hi on Twitter @EmmaSturgis2