Finding Reliable Suppliers for Your Products

So you've picked what kind of business you want to run, performed market research and discovered that there's an entire world of customers who are just waiting to buy your products. You've decided on a business structure, chosen your name, and decided if your storefront will be brick-and-mortar or online. That's great!

But where will you get your products?

Too many new business owners find themselves with the perfect business plan and no products to show for it. The places you have seen aren't an option because their prices are just too high for you to make a profit. Well, finding a supplier isn't as difficult as you might think - you may just need some help.

Trade shows are usually a good source to find a new supplier. They offer spectacular networking opportunities, and a way to seek out suppliers willing to work with you. Just by attending a trade show establishes you as a businessman and merchant in your industry, someone who is serious about the field and a potential client. Trade shows also give you the chance to compare the price range of the products you're interested in purchasing. If you don't have the time or money to attend a trade show, a less expensive alternative is to read trade journals and magazines to find potential suppliers. Some will advertise the products they sell or tell you where they're going to be exhibiting.

Another resource readily available are the trade organizations in your industry and associations that relate to the products you're going to be selling. They can also provide you with contacts, including international companies. As such trade organizations were created for the purpose of connecting suppliers and buyers, you may find yourself in luck. Look for the National Trade and Professional Associations of the United States or Gale's Encyclopedia of Associations at your library for more information regarding trade organizations relating to your industry or product.

So now you've found suppliers you're willing to do business with. That doesn't necessarily mean they're willing to do business with you. The next step in this dance is to impress them enough so they'll agree to be your supplier. The best way to do this is to prove that you're a serious company and not just a Joe Schmo with your shingle in front of a store that will vanish tomorrow. Present yourself professionally as someone who plans on building your business. You don't have to be incorporated, but it helps - a corporation has a much better chance of sticking around and growing than a sole proprietorship does. Be prepared to ask the supplier how to become a registered wholesaler of their products, because some suppliers (especially if you're dealing overseas) will require it. This process will include references, credit checks and banking history, among other factors. You may sometimes wonder why you're even bothering, but purchasing at wholesale rates will boost your profit margin significantly (not to mention the higher probability of selling items you don't have to drastically markup to offset your original high cost.)

It helps to tell the supplier what kind of business you are, why you're interested in their products, and why they should sell to you. If you can, obtain a letter of credit from your bank and references from people who can say you're trustworthy. It may be best to start with a local supplier and go from there, so when you start knocking on England's door you'll already have an arsenal of these letters and a proven track record.

If you have one or more suppliers interested in selling to you, you're well on your way. Ask them to send samples of their products so you can determine that they're the types of products you really do want to sell. Some suppliers will gladly offer samples for free, but don't be shocked if others charge. Have at least two regular suppliers, in case the deal ever falls through with one of them. Too many business owners think one regular supplier is enough, but if that supplier doesn't come through for one reason or another, your company can easily be set back by weeks or months - a tragedy many companies don't come back from.

Lastly, don't forget that the bottom line for your product ends not with you (hopefully), but your customer. Every product you decide to stock should be carefully considered with your target consumers in mind. You could have the most fantastic widget in the world from a supplier who's selling it to you for pennies on the dollar, but it means nothing if it isn't something your consumer will like. When purchasing your products, think of what the benefits will be to the customer and decide if it's something they want or need. Even if your decision is wrong, nine times out of ten an educated guess is better than a blind one.