@H4run
Most small business owners know very little about business. They usually enter the commercial world with a slice of knowledge related to one or maybe two of these:
They are missing multiple key elements of starting a successful business: marketing, accounting, planning, operations, financing
They do not understand their customers
They often think revenue equals profit
They slavishly copy some business model they don't understand such as "under the competition on price to grow market share."
As a small business owner, you need to choose your suppliers carefully, perhaps educate them in your expectations and what that means for them. Your goals and their goals need to be somewhat aligned. If you anticipate needing 50 of product X a month for your sales and your supplier can only create 25 of them in a month, you will have a problem. You need to understand how your suppliers do business and create products and they need to know how your business works and the delivery schedules you will need. There can be lots of guess work in all this so the better you and your suppliers know one another the smoother things will go. The more you know about your business and your customers, the better you will be at selecting suppliers.
Most small business owners know very little about business. They usually enter the commercial world with a slice of knowledge related to one or maybe two of these:
- Product knowledge from a previous job
- Service knowledge from a previous job
- A narrow skill set learned previously
- They heard or read about a "hot" opportunity
- A family member or relative encouraged them to do this business for some not clear reason
- They lost their job and think they can compete with their previous employer
They are missing multiple key elements of starting a successful business: marketing, accounting, planning, operations, financing
They do not understand their customers
They often think revenue equals profit
They slavishly copy some business model they don't understand such as "under the competition on price to grow market share."
As a small business owner, you need to choose your suppliers carefully, perhaps educate them in your expectations and what that means for them. Your goals and their goals need to be somewhat aligned. If you anticipate needing 50 of product X a month for your sales and your supplier can only create 25 of them in a month, you will have a problem. You need to understand how your suppliers do business and create products and they need to know how your business works and the delivery schedules you will need. There can be lots of guess work in all this so the better you and your suppliers know one another the smoother things will go. The more you know about your business and your customers, the better you will be at selecting suppliers.