Suppliers won't supply me???

[Knight]

I am starting a business and I intend to get my products out to people through party plan, however after a fantastic start to getting suppliers I have now hit a brick wall with some of the 'bigger' suppliers I wish to secure!!

As my business is party plan and I don't have a premise (I work from home) I don't pay business rates. This is a neccessity for some of the suppliers I want.

Is there any way around this? Can I class my home as a business premise and pay the necessary rates?

I really need some of these supplier to help make my business a success!!

Thanks
K

[Subbynet]

Even if your business is "Party Plan" it must have a base - somewhere you store stock and have letters sent too... Well this is your business address.

The business rates part isn't really important, but would you supply someone who can't even give an address?

[Knight]

Even if your business is "Party Plan" it must have a base - somewhere you store stock and have letters sent too... Well this is your business address.

The business rates part isn't really important, but would you supply someone who can't even give an address?

I have given them an address and I have given them a landline telephone number a fax numbers an e-mail and a web address.

I have been told by numerous companies I have to pay business rates or own a shop premises.

[Subbynet]

How about setting a room aside and paying business rates on it?

Under the law tho, if the room is multi-use, say your living room, you shouldn't need to pay, but a companies policy is a companies policy, and this might be the easiest thing to do.

[Network Yorkshire]

A member of ours came across this problem when he wanted to start selling surfboards on ebay....

The established brands wanted there stuff to be retailed via regular outlets instead of having it sold in mannaer that might suggest it was a discount brand etc....

Might be worth taking the time to go through your business model with potential suppliers in order to show them how what you do enhances not damages their brand etc

[Humphrey]

To avoid other possible issues, if you use your home for business purposes check that there are no local restrictions, such as restrictive covenants on your property, that say you cannot run a business from there.

My home is my business address for administration purposes which is fine, however my deeds have a restrictive covenant that prevents me from carrying out business operations that would necessitate visiting customers / clients, regular deliveries and manufacturing. One of my neighbours was forced to stop using his home for his accountancy book keeping business following complaints regarding increased traffic from clients visiting.

[Ashley_Price]

Another thing is to offer business references from your other suppliers/customers to show that you are legit.

[alphanumeric]

Quite a few companies at distribution level are now asking for shop premises, this is to stop low margin ebay people buying stock and driving the shops out of business.

[Mister B]

I think that the problem that you face is that your prospective suppliers are failing to take you seriously. Lots of large manufacturers are inundated by individuals who are keen to make a quick buck by selling on ebay. Accordingly, In order to protect their existing customers, they put in place stringent procedures which must be followed before new accounts are opened.

If you try and arrange a meeting with the local reps and go through your business plan in detail, they may see the matter differently and decide to supply you.

Mister B

[Knight]

Thanks for all your advise guys!

I don't have a business plan as I haven't needed one thus far! What so you think I should put together to try and convince the suppliers that I have absolutely no intention on selling E-Bay??

What would they want to see?

Thanks
K

[Burden]

Failure to plan, plan to fail!

I wouldnt do much without even a small / rough business guide..

In the music/fashion areas alot of suppliers work with certain premises and companies.. ie.. not in 5 miles radius to another supplier at present etc. This might be part of the reasons but if you ask they should be able to tell you.

Id imagine if its not something like that if you can prove your a serious company it shouldnt be a problem (from experience) although maybe worth getting a 50 sq ft tiny unit to store stock anyway if you can find something cheap? I found so much more happened when i moved stuff from home to a unit.

[accountancyextra]

How about setting a room aside and paying business rates on it?

Under the law tho, if the room is multi-use, say your living room, you shouldn't need to pay, but a companies policy is a companies policy, and this might be the easiest thing to do.

Sorry Subbynet, but you really should not do this. If you do, that part of the house may be subject to capital gains tax when you come to sell it. That's why accountants always advise you to keep the room multi use. The minute you start paying business rates, that part of the property becomes a business property, if you see what I mean

[silvermusic]

I really need some of these supplier to help make my business a success!!


Perhaps a re-think on the business plan may be in order. Sure it would be nice if you could get on board all the suppliers you want from day one, but realistically it's not going to happen. Work with what you have already, everyone has to start somewhere.


Another thing is to offer business references from your other suppliers/customers to show that you are legit.


Exactly, when you become established you wont have the same problems, show you have what it takes and have a solid track record first. I spent four or five years building up a supplier base on my original business and over the years have made many contacts in the industry, a lot of it is who you know. This in turn has opened up all sorts of doors I would have not got past at the begining. As with other aspects of your business with time this will grow if you put in the effort.

[JGOffshore]

In all honesty I can't say I blame your (potential) suppliers. If you can't pay them up front you are asking them to finance your (unproven) business.

Why should they?

[lesliedocherty]

JG, who mentioned finance, she wants stock, no mention of wanting credit, all new customers will be pro-forma anyway

[Steve Cool]

What would they want to see?

Thanks
K

Your business rates payment card :| .........as you previously stated:|

Steve

[Lasting Designs]

Sorry Subbynet, but you really should not do this. If you do, that part of the house may be subject to capital gains tax when you come to sell it. That's why accountants always advise you to keep the room multi use. The minute you start paying business rates, that part of the property becomes a business property, if you see what I mean


And I have been advised to store some tools (to stop them going rusty ;)) in my Garden Office for the same reason. I also have a sewing machine in there to, as the area is clean and has plenty of room to work in.

[Mattonella Tile Studio]

I think some suppliers also want to know they're dealing with a 'business'. If you're at a home they may think you haven't got the committment, in the sense that you can just stop; you may try and sell a few of their products off cheaply and quickly, for a quick bit of money; you may just be a consumer trying to pick up some of their products at retailer price.

[Network Yorkshire]

Make sure you have a comprehensive business plan

be able to show sustainable growth

let them know how you will enhance rather than damage their brand

get testimonials from other suppliers who you have good relations with

lastly, if you have to, use different suppliers even if you have to pay a little more until you have the power and credibility to work with the big boys...

[Subbynet]

Sorry Subbynet, but you really should not do this. If you do, that part of the house may be subject to capital gains tax when you come to sell it. That's why accountants always advise you to keep the room multi use. The minute you start paying business rates, that part of the property becomes a business property, if you see what I mean

I agree Stuart, but how does that help him in this situation?

It looks to me that you pay this tax (and rates), or you don't take this path of expansion any further....

[Network Yorkshire]

if you think that this IS the only way forward then your right.......

I'm of the opinion that it isn't the only way forward...

Just my opinion though