Finding a supplier when starting your own business

1. Find a supplier that suits you

The search for a supplier is often a combination of research and talking to many people. Think about what kind of supplier you need: a wholesaler where you buy things for your business? Or a manufacturer? Because if you are developing a product yourself, then you might be looking for a factory that can make it for you.

You can search online, for example on marketplaces and platforms for businesses (b2b). Or websites like Europages and Kompass. This will give you an idea of which businesses are of interest to you. And talk to as many people as possible about your plans. Preferably with entrepreneurs from the same field. That way you can find out, for example, what relevant trade fairs are available. That is where businesses present their products. Perhaps you can go along to one of them. This will make it easier to talk to the right people.

Can you not find a supplier close to home? Then you can also look outside the country.

2. Make sure suppliers take you seriously

Suppliers are often not waiting for entrepreneurs who are just starting out, because the success of the business still has to be proven. So, make sure the supplier has confidence in you. One way of doing this is with a long-term plan: you describe how you want to grow your business over the next 3 years, for example. Research the supplier and ask critical questions. This shows that you have taken the effort to prepare and that you are serious and know what you are talking about.

Are you getting support from a financier? Tell the supplier about this, because the confidence of your financier gives the supplier confidence as well. Make sure you know everything about the product and the latest developments in the market.

Sometimes suppliers want you to place multiple orders at once. Or that you place a larger order than you intended. Clearly state your limits, often you can then place a single or smaller order.

3. Find out if the supplier is reliable

A supplier who does not fulfil their agreements can get you into a lot of trouble. For example, you receive the products too late or they sent the wrong products. Or even worse, you are doing business with a supplier who has financial problems. In case of bankruptcy, you could lose your deposit or products. So always check out the supplier before you place your first order. Then there is a better chance that everything will go well.

Do not just trust what you see online. The reviews and website may look good, but visit the business too. That way you can see for yourself whether what the supplier tells you is true. Also request annual figures from the business and check their KVK registration. Ask the supplier for details of customers and relations, get in touch with them and ask about their experiences. Also find out whether the supplier is a member of a sector organisation (in Dutch).

Ask for a sample of the product. This way you can check the quality before ordering.

4. Make agreements and put them on paper

Finally, record the agreements with the supplier in a contract. Put the agreements on paper. Do you do business with a manufacturer? Then add technical descriptions, an overview of all parts of the product, drawings, and 3D models to the contract.

Also state in the contract what the supplier must do if it delivers the products too late or of poor quality. Before signing, have the contract checked by a lawyer or have an experienced entrepreneur read it.

Negotiate

The supplier will probably want you to pay part of the amount in advance. Dare to negotiate about the amount. Also negotiate the delivery time and agree on quantity discounts: the more you order, the higher the discount.

Request a quotation from several businesses. That way, you can find out whether the price the supplier is asking is reasonable. Is their price higher? Then you have a good reason to negotiate.