As an entrepreneur, especially a first-time entrepreneur, you will face numerous issues and challenges in the early stages of your career. The first issue discovered is how to find products and suppliers.
Here are 10 common questions startups have when sourcing suppliers:
1. How do I find and evaluate potential suppliers?
Look at industry associations, trade shows, online directories, referrals to find options. Vet suppliers on quality, reliability, capacity, costs, certifications, etc.
2. What should I look for in a supplier agreement?
Clearly define terms like pricing, payment terms, delivery timelines, quality control, intellectual property rights, and termination clauses.
3. How much inventory should I order upfront?
Balance having enough stock versus overordering and tying up too much capital. Start small while gauging demand.
4. Should I use a local or overseas supplier?
Local suppliers allow faster fulfillment and easier communication. Overseas can have lower costs but longer lead times. Evaluate pros and cons.
5. How can I get the best pricing from suppliers?
Build long-term relationships. Offer volume orders and steady business. Pay quickly. Have multiple suppliers compete.
6. Should I use a manufacturer or distributor?
Manufacturers make products directly. Distributors buy and resell products in bulk. Choose based on needs.
7. What compliance issues do I need to consider?
Product safety, restricted materials, labeling laws, import/export regulations, etc. Vet suppliers thoroughly.
8. How do I resolve disputes with suppliers?
Use contracts, maintain communication, gather evidence, and negotiate a compromise. Have alternative suppliers as a backup.
9. How do I evaluate prototypes before placing large orders?
Review carefully for quality issues. Conduct field testing with target customers. Provide feedback for modifications.
10. When should I switch to a new supplier?
If quality declines, costs increase, they can’t scale with you, better options emerge, they become unreliable, etc.
Of course, you can also contact us. Our Feisourcing team is very professional in sourcing products and suppliers, and we have over 10 years of experience working with suppliers. Leave your contact information, and we will contact you as soon as possible.
