I’m Rich and I welcome you on my personal space on the Internet. I created this blog with a single purpose – to inspire you to take charge of your money and help you become a financially successful and independent person.
Will Signing on That Dotted Line Make You Millions or Lose You the Lot?
When we start a business, we all dream of achieving THAT one big deal. You know the one. This is the deal which could seal your place in the serious business stakes. Local shops and online selling are all well and good, but when big businesses want to order your stock, you can finally sit back and say you’ve arrived where you need to be.
In fact, it’s likely you’ve been pitching for places in supermarkets and such since your enterprise was but a twinkle in your eye. And finally, FINALLY, that big company have agreed to buy a set amount of monthly units from you. Buckle up baby, because this is where the money really starts rolling.
At least, it could be, if you think things through before you sign. Given how hard you’ve worked, turning a contract like this away would be business suicide. But, as much as that deal stands to earn you money, failure to keep up could lose you just as much. That’s especially the case if you sign a contract for a set period. Which is why you need to consider the following before signing on the dotted line.
Do You Have the Production Power?
The first thing to ask yourself is whether you have the production power. Big businesses are used to dealing with…well, other big businesses. As such, it isn’t unusual for them to place an order which your small enterprise just can’t handle right now. It’s fantastic that this company wants a lot from you, and every bone in your body will tell you to take the deal and deal with it. But, if you sign for an order you know you can’t fulfill, you’re going to face a lot of costs down the line, and a lot of stress to boot. What’s more, you can bet your bottom that a big company like this would never look twice at you again. It would be embarrassing all around, and it could even cost you your business.
So, before you sign, think long and hard about your real capabilities as it stands. Admittedly, it isn’t going to look great if you ask for a reduced order. But, it’s going to look a hell of a lot better than accepting work you can’t cope with. Even if you don’t turn the order down straight away, buckle down to hiring a larger team with the extra money. But, make sure you don’t sign anything until you’re 100% that you can achieve the work without worry.
Do You Have the Storage Facilities?
It’s also worth asking whether you have the storage facilities to cope with this workload. You might have been okay to keep your products in the garden shed when orders were minimal. But, one large order could lead to your needing to buy or rent a much larger storage space like those found on lambertcommercial.com. In this instance, it’s worth asking whether this would even be worth your while. After all, you can guarantee the cost of commercial space will far outstrip the money you’ll get from that order. Of course, you could still stand to benefit from coverage and connections. But, if big bucks were your primary focus, you may be bitterly disappointed about the turnover you see from this deal after all. Yet, you can’t risk thinking you’ll be able to squeeze your big order into a small storage space. The last thing you want is to find that you have nowhere to put those products you’ve made. This would spell a lot of lost money, as well as extra work for your whole team.
Do You Have Reliable Systems in Place to Make This Work?
We’ve all been in the early stages of business. You start out jotting orders on a post-it note, right? And, there’s nothing wrong with that when you only have a few one-off orders to cope with a week. Keeping on top of things is as simple as jotting dispatch dates in your calendar, or putting a reminder on your phone. But, when you’re taking big orders, you need to know that your systems are a little more reliable than that. After all, missing a significant deadline could see you up the creek without a profit paddle.
So, ditch the post its. Instead, turn to companies like dataserv.com who can help you develop systems with a little more sophistication. This way, you can keep on top of important dates, and even ensure that your purchase order with this company automatically updates each month. That way, you’ll never have to miss a delivery day. And, that’s kind of a big deal if you want to keep that big business happy.
Can You Deal with Other Customers at the Same Time?
Above points aside, you also need to ask yourself whether you can deal with this, and other orders which come your way. It’s all well and good deciding that you have the production power to meet these needs, but could you also cope with outside orders? When it comes down to it, that one big deal will not be enough to help you achieve success. It may well be fantastic to get your name out there with the backing of an established brand. But, getting your name out there won’t make a jot of difference if you can’t meet the demand for any more orders. If this is the case, it’s down to you how to proceed. It may be that you take on the order with increased employment in mind. Or, you could again try risking getting those order numbers reduced. Whatever you do, you need to know you can still deal directly with your customers at the same time. After all, they’re the people you really need to impress. Neglect them, and you can kiss goodbye to ever getting this thing off the ground. It’s a tough decision, and there’s no denying it. But, no one ever said that being an entrepreneur would be easy.