As your trading company grows, you may soon find yourself having to set up a warehouse for it. This is where you’d be storing extra inventory – that which is too much to be displayed in the company’s showrooms. With a warehouse, it will be possible for you to keep several weeks’ (or even several months’) inventory. This way, even if there are disruptions in the supply chain, you’d be in a position to keep your trading company running (selling whatever was in the warehouses) even as you wait for the supply issues to be sorted out. Conversely, if you have no warehouse, and you only order for new stock when the old stock starts running low, you could be very badly affected if there are supply disruptions.
Contrary to what one may imagine, you don’t necessarily need to have lots of money while setting up a warehouse for a trading company. Yes, if you are building a new warehouse, or purchasing a new warehouse in cash, you will need to have lots of it. But there is also the option of renting the warehouse or acquiring one on mortgage. Renting is particularly cheap. You can afford it, even if you are relying on your personal resources to keep your business running. Like, for instance, if you work at USPS, and you are relying on your liteblue eretire 401(k) funds to keep your trading company afloat, you can still afford to rent warehouse space. In that case, you only need to visit the liteblue epayroll login page, sign in there, and proceed to see how rich your retirement fund is. Then you can ‘borrow’ some money from the retirement fund, and use it to improve your trading company, by way of renting some warehouse space.
In the final analysis, while setting up a warehouse for a trading company, you need to:
- Figure out how much warehouse space you actually need.
- Identify a ready-built warehouse with that much space (or otherwise acquire a piece of land where you can build a warehouse with that much space).
- Acquire the funds necessary to build or rent the warehouse.
- Make the necessary payments for the warehouse.
- Prepare the warehouse, by installing the necessary furniture – including wood pallets for the floor, ventilations (if these weren’t provided in the original plan), shelves… and so on.
- Move stuff into the warehouse.
- Consider installing inventory management software, to track the stuff that is stored in the warehouse, lest it be pilfered.
If you want your trading company to do well, you will need to ensure that you consistently pay your suppliers on time. Sometimes (and rather unfortunately), it is easy to get the impression that the suppliers need you more than you need them. This feeling arises out of the fact that you are the one who pays them. And money has a way of making one feel powerful. Yet when you come to think of it carefully, you realize that you need your suppliers just as much as they need you. For if you have no supplies, your business is bound to close shop. Once you come to terms with these realities, the reasons as to why you need to pay your suppliers on time become obvious. And for you to be in a position to pay your suppliers on time, you need to:
- Create reasonable expectations at the outset: how soon can you (realistically) manage to pay your suppliers, after delivery? This is the question you need to ask yourself, before engaging the suppliers. Then, while engaging them, you need to tell them that that is how long they will be waiting for their payments. And that within that time frame, they will be (for sure) getting their money. If, for instance, you tell the suppliers that you will be paying them after a month, and you indeed pay them after a month, they will regard it as a ‘timely’ payment. But if you tell the suppliers that you will be paying them after a week, and you end up paying them after 10 days, they will regard it as a ‘delayed’ payment! So it is important to manage expectations right from the outset.
- Manage your cash-flow properly: the idea here is to ensure that you always have enough money (from your sales revenues and so on) to pay the suppliers on time, consistently.
- If necessary, borrow to pay the suppliers: you can take a bank overdraft, or a short-term loan to pay the suppliers. You can even use your own private funds — just to ensure that you pay your suppliers on time. Like if, for instance, you also work at a company like PepsiCo (on top of running the trading company) you can use part of your paycheck to pay the suppliers. So you just visit the Mypepsico website, to check the said paycheck. That is essentially a question of proceeding to the Mypepsico login page, signing in, and checking if your paycheck has been credited to your direct deposit account. You then use the money to pay the suppliers. And then you use the money you get from the sale of the merchandise you paid for to reimburse yourself.