As a small business owner, you have to maximize your company’s resources to reduce costs while raising profits. A supplier that offers good value is a must because they can positively or negatively affect your business’ cash flow. Some get lucky with their choice of suppliers while others are prudent enough to change or re-negotiate the terms of their contract.
Learn how to find suppliers for your small business with these tips.
Determine the Needs and Cash Flow of Your Company
Some small businesses fall into the trap of excess inventory for a variety of reasons. This ties up important cash they could’ve used. When you look for suppliers, determine the resources your company has and the needs you have to address. Review your business’ sales history to determine supply and demand. This can be for the entire year or the past few months’ sales cycle. Factor in storage space when you calculate the amount of inventory you need from a supplier.
Use Your Networks
Networking is an effective way to find suppliers within your budget and amenable to your terms. Reach out to competitors in your niche. Some would be willing to talk about suppliers and offer help. Approach your local chamber of commerce for sources or community groups online or in your neighborhood. Social media also provides you with opportunities to meet suppliers or other businesses that can recommend you through their networks. Create a win-win situation for all parties involved.
Participate in Events
You can find small business suppliers by participating in old-fashioned events. Choose ones that are specific to your industry needs. Avoid just showing up and thinking you’ll get a good supplier immediately. Have a plan in mind; join panel discussions, trade business cards, get contact details and set up meetings. Have a structure of how the meeting will go and objectives you want to achieve so that it’s a product endeavor that gets you the supplier you want.
Learn more about Your Distribution Channels
Study the supply chain of your inventory and if you can’t get goods directly from manufacturers, an alternative is to source from their distributors. These different channels provide you with options that are within your budget. Some would have better delivery prices because of their proximity to your warehouse or store. Look for one that has terms that are favorable to your small business.
These tips on how to find suppliers enable your small business to grow and generate profits. If you need help with updating your books, you can reach out to us here at Robookkeeper via [email protected]. Review our affordable bookkeeping services to learn more about what we can do for you.