As a new business, it can be challenging to navigate the market and make the right decisions for your brand. An investment that goes awry could permanently impact the success of your company, so you need to be savvy when it comes to who and what you choose to invest in.
Therefore, it’s worth taking the time and making an effort to research into each step you take during the first tentative year of your brand. The following are some tips and ideas for those who need to consider where their money is heading, and when they should avoid spending altogether.
In the early stages of producing your products; you need to ensure that you build on successful and trustworthy relationships with your suppliers and manufacturers. If your items are of decent quality, made on time, and will give you enough of a margin to profit; you’ll be off to a great start.
Poor relationships with a supplier that you know little about can result in a major waste of time and money, and you don’t want to learn the hard way, so make sure you do some investigating beforehand. See what other brands and businesses your potential suppliers have worked with; look at the success of those brands and speak with them if you’re able for some inside knowledge.
If you’re impressed with a company, who can supply you with your relevant materials, tools, or equipment; ask them questions and make sure that you’re happy with the terms and costings before investment. It’s always worth paying a little extra to maintain high quality and timely results; you can look into short term financing options to ensure that your supply chain gets off to a successful start.
The same goes for your manufacturer; if you are outsourcing the production of your items, always invest on a reputable business who you’re comfortable working alongside. You don’t need to micromanage; however, part of the process will be regular contact and feedback between one another, so bear that in mind before you spend anything.
If you’ve done your research; you should be able to decipher who and where would be a negative investment for your startup. Poor feedback and association to unsuccessful or shoddy brands are tell-tale signs that a supplier, manufacturer, or buyer should be avoided.
As a startup company; larger corporations, stockists, and businesses may try to take advantage. Don’t be intimidated or swayed by empty promises; make sure you invest in legal advice whenever possible and get the margins, prices, and profit that you expect and want.
Be particularly wary of overseas companies; if you can’t find access to much information about a company, it’s worth avoiding them. Communication and time are both keys to the success of your startup, so make sure that these are straightforward elements of your relationship with each of the businesses you choose to invest with.
If you find it difficult to get hold of and communicate, with a potential supplier or business in the early stages; avoid using them in the future. Often, if something feels wrong or right; that’s what it is, so trust your gut with decisions and don’t be tempted by lower prices and false advertising.