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When you’re getting ready to launch a business, you’re naturally going to be focussed on the more exciting aspects of it; researching the market, brainstorming branding materials, benchmarking your closest competitors, and so on. Other things, such as searching for manufacturers and establishing contact, can easily by the wayside. It may not be exhilarating, but getting a great start with manufacturers is essential for your future success. Here are some tips to go about it…
Establish a Mutually Beneficial Partnership
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As a small business owner, it can unfortunately be a little tricky to make sure big, successful manufacturers take you seriously. With this in mind, it’s absolutely imperative that you present them with some kind of incentive for the manufacturer to work with you. Getting the supplier you want, no matter why you want to work with them, can take some tough negotiation, but will ultimately be worth it in the end. Let’s say you’ve got your sights on a fairly large manufacturer, who definitely has the capacity necessary to build your product, but doesn’t have experience building products in your particular category. In this situation, it’s your job to highlight the benefits of them expanding into a new area, and why the partnership would be beneficial for the both of you.
Research, Research, Research!
Any big business decision needs to be backed up by a massive amount of research, and this is especially true when it comes to setting up your manufacturing. Whether you’re sourcing simple, template products like the shoe soles from Soltrack, or something more complex and unique, there’s a number of universal variables tied to the manufacturing process which you need to take into account. Trade conventions and fairs are usually a good place to stake out prospective suppliers. Just make sure that you’re selective about who you hand out business cards to, or your inbox will be flooded overnight! Possibly the best way to find out what you can expect from a partnership with a specific business is networking with non-competitors who have bought from the company in the past. This will give you an objective look into what you can expect, and can also point you towards some great suppliers who you never considered before.
Don’t Put All Your Eggs in One Basket
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If it’s possible and practical, you should try to establish and maintain a number of reliable relationships, rather than narrowing down on a single vendor and snuffing out all your flexibility. Have a list of versatile vendors on hand, and keep up communications with all of them. This will allow you to diversify your risk, and will also give you access to more competitive pricing. Once a bigger customer comes along, your primary manufacturer may suddenly start ignoring you. In some cases, a freak accident can put your main supplier out of business for months on end, grinding your cash flow to a halt. These kinds of crisis can both be avoided by spreading out your risk, and keeping close with a number of different vendors.