One of the biggest challenges for any retail brand is making sure they can scale up manufacturing of their products to meet the demands of their big orders.
That’s the difficulty Yasmin Border is in with her business, The Soak Life, to be able to increase manufacturing capacity to meet demand.
Appearing on The Mentor with Mark Bouris podcast, Mark’s advice to Yasmin is to specify the terms for your orders.
“You go back to your supplier and tell tham that you’ll pay 50% now and then 50% in 90 days, so you don’t have to borrow money and can manage your cash-flow better,” he said.
“Generally speaking, if you’re putting in big orders, most suppliers give terms, and obviously stretch them out as much as you can.”
Mark says to get your cashflow in order if critical.
“You don’t want to get yourself in a position where you pay your retailers straightaway but the ones you supply to don’t pay you for awhile,” he said.
“And the big retailers like Coles and Woolworths have terms like that and there’s no negotiation.”