![]() “Your supplier may have a lot of orders before and after the holiday,” Grenier says. For example, the Chinese New Year break can last as long as a month for many suppliers. Holiday dates may change from year to year. Some holidays may involve extended work breaks when production shuts down. Keep on top of important dates in your suppliers’ country. It’s also useful to make in-person visits each year to touch base with suppliers and check out any new products. “They may take your needs more seriously if you show up and make your case in person,” Grenier says. In the event of a serious delay, a trip to visit the supplier can help speed things along. If you don’t follow up regularly, you may not learn about a delay early enough.” “You need to be very disciplined about following up on dates and asking a lot of questions when red flags come up. “Delays for overseas imports can be long, and there can be disruption in delivery schedules,” Grenier says. It’s important to contact suppliers regularly to see how production is going, especially with time-sensitive orders. In this way, you won’t have to pay while the merchandise is in transit. You can also negotiate with the supplier so they accept final payment when the shipment arrives in Canada. Especially with a new supplier, it’s a good idea to make a trip to inspect goods in person before releasing final payment. Suppliers often ask for partial payment upfront when an order is first made-30% is typical-then require the balance to be paid before products are shipped. You can hedge your risk with the help of a currency broker or your bank. Both currencies can fluctuate significantly against the Canadian dollar, with major impacts on your margins. Payment for imports is usually made in U.S. Also make sure product packaging meets Canadian labeling rules, and look into what taxes and duties you’ll have to pay on imported items. “You want to make sure that when it lands in Canada, you’re going to be able to sell it,” Grenier says. Research Canadian taxes, fees and product requirementsīefore signing an agreement with a supplier, be sure to check whether their products meet Canadian regulatory requirements. “Then you’re not a hostage of any one company.”ĭiversifying your supply routes and shippers also helps control the risk of interruption. “Let them know they’re not your only supplier,” Grenier says. Diversifying helps ensure continued supply in case of interruption with one of your partners. How they handle product quality issues that may arise after a shipment arrives. ![]() How the business treats its workers, including whether they use child labour.Issues that are crucial to verify include: You can use a checklist to rate potential partners and help you make a final choice. If you don’t go in person, you’d never know.” “They might have the best website in the world, but maybe it’s just a student in someone’s basement or a middleman with no factory of their own. “It’s important to visit a partner in person,” Grenier says. Scratch off those that don’t meet your requirements, and then arrange on-site visits to meet the most promising ones. Research these companies in-depth by asking for samples, evaluating their team and getting a sense of what they’d be like to work with. Visit potential suppliers in personīased on your initial contacts, make a short list of companies that seem like good potential suppliers or partners. “You’ll come back with 1,000 ideas to start a business.” 2. “It’s very inspirational-a real eye-opener,” says Grenier. An excellent place to start is at various trade shows where foreign companies show off their wares.įor example, the Canton Fair, held twice a year in China, boasts over 60,000 company booths featuring a massive range of products over three weeks. Your first step is to find reliable suppliers. ![]() Grenier offers these eight tips for entrepreneurs thinking about starting an importing business. Growth & Transition Capital financing solutions Kauffman Fellows Program Partial Scholarship Venture Capital Catalyst Initiative (VCCI) ![]() Industrial, Clean and Energy Technology (ICE) Venture Fund
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