Are you looking to start a new business venture, and need some guidance on the steps to follow when choosing an international supplier for your business? If yes, then you’ve definitely come to the right place. In this article we’ll tackle the necessary basics to cover before you finally put your signature down with an international contractor.
Startups are all the rage these days, and this shines a positive tight on the millennial generation as independent, creative and driven. However, when starting a business resources are not usually at our disposal, and we’re left to outsource either domestically and often times internationally. Outsourcing internationally has a lot of perks such as cheaper rates, and easier access to resources, but they also have their downsides too. Disadvantages such as sleepless nights wondering whether the supplier will live up to the agreement, or if the product will be up to the standard your business demands. We’re here to help reduce your worries by offering some very helpful tips.
Top Tips to Keep In Mind
When starting a new business, especially a startup quality is one of the key factors that you just cannot afford to compromise on. You’re introducing a product/service that is new to the market, and people are experiencing for the first time, therefore you have to ensure that the quality is topnotch. Find out about the quality of the goods the supplier provides from businesses that make use of their services. You can also request a sample/test batch to ascertain that what you’re being offered meets up to the quality threshold you’re setting up for your business.
This is when your own personal research comes in. Contact other businesses around, or find someone that has worked with that supplier before, and ask how they operate and if their mode of operation will be beneficial to you and your business. Most importantly, ask if they are reliable and they are a company that you will not regret doing business with. Find out their success rate, and their customer satisfaction rate. You do not want to go into business with an international supplier that is not reliable, and won’t provide you with the goods you need when you need them. Or is willing to compromise on the quality or volume of the products you ordered for your business.
As a new business you have to have a business plan, and budget for any expense you make to make sure your ends meet. Have a sensible budget when it comes to hiring a supplier. If the supplier meets up with the criteria listed above, then you can come to an agreement about price. Try to get the best market price for the quantity you’re ordering at that point, but don’t be ignorant of production and risks cost the supplier has to cover. Never pay upfront, especially if you’re working with a company you never had a prior relationship with. However, if someone you trust has vouched for the supplier’s credibility, you can agree to part payment upfront, to improve your relationship with the supplier.
Just as you’re entering the world of business and getting into competition with other companies for customers, it is important that you understand that you’re also in competition to maintain your supplier. Suppliers can’t provide their services to a large number of companies at a time, which is why they are very careful before offering their services to a certain company. If they do not see growth or any improvement in your company and a different company comes along offering a better rate, they are likely to drop your business for the next. So, ensure you develop a good relationship with your supplier, maintain that relationship and make the best decisions to help your business grow.
Giovanni’s passion and interest in global sourcing and trade gives him insight and understanding that most would miss. His love of research mixed with his background in business makes for an interesting read.