[RobertB]

I run a window blind business selling directly to customers. The typical ordering process is visit customer, measure take deposit, return fit blinds and get paid.

I'm now looking at expanding in two areas;

Selling to the window blind trade (wholesale)
Selling on-line to the general public.
Since the expansion is so different from my normal business I've decided to write a business plan (that makes a change )
and I've a number of questions that I'm hoping the good people of A1 will help me with.

First, some key points of this new aspect to the business

1) I intend to specialise only in vertical blinds. (By specialising in one area I can keep prices low)
2) Target small window blind retailers (Large companies will manufacture their own blinds)
3) The market for window blinds is growing in the UK with over 1000 small independent blind retailers
4) I intend to send information packs with samples to 20 - 25 companies per week and follow up with a telephone call.

This is uncharted water for me, I have sold retail for many years but never b2b. So any advice is most gratefully received

Can anyone answer the following;
1) In the window blind industry companies expect credit accounts of typical 28 days. What % of turn over should I estimate for bad debt? Is their any forum members who offer products on account who is willing to share their experience?
2) Is there a low cost method to credit check a company? (sole trader and Ltd)
3) What is the best (ie low cost) accounts software to track customers?

Bad debt is my biggest concern with this expansion as I don't want to lose my business due to people not paying their accounts!!:sad1:
I only joined the forum today so thanks to everyone for the friendly welcome.

Robert

PS I'll start a new thread regarding selling on-line

[RedEvo]

I'd advise using kashflow.co.uk for tracking of invoices. It's very simple and very good IMHO. On the subject of bad debt, it happens but if you look at the whites of your potential clients eyes you can USUALLY tell who's a safe bet and who isn't.

d

[Dotwhack]

For the selling direct online apprach - have a look at these guys;
http://www.blinds-depot.co.uk/
I ordered 3 blinds from them recently - they were cheap and quite fast considering they are made to order. I ordered a vertical blind for french doors and 2 ventian blinds (one small & one large) for £140.

I'd suggest doing so research order to see what other retailers are doing and to match prices etc.

If you need any help on the web side of things, feel free to ask.

[RobertB]

Thanks for the comments about kashflow it’s the package that I think I’ll end up using. I was basically looking around to see what else was on the market.

Dotwhack, thanks for your input regarding prices, the blind market is very competitive which is why I am specialising only vertical blinds.
Out of interst, my price for a French door size blind would be £29 - £39 how does that compare? (Not a sales pitch)

Thanks Guys for your help,

Robert

[Dotwhack]

Think it was about £40-£50 for orange vertical blinds which covered french doors....so you would be cheaper.

no doubt we'll need new ones next year because the dogs stick their heads through them to see the outside world....they're always getting tangled up etc in them

[IP2]

Hi again Robert,

First off make sure you not only get your trade clients to fill in a trade application form, I am sure you are familiar with the general format, but do then chase up their trade references and ask the questions you really need to know. Does this customer pay on time? Have they ever had any problems with the account? And how long they have been trading with that supplier? - On the last, don't just trust the answer your client has given you.

Two things are regularly missed off a Trade Application form, even by large companies and I recommend you do include them...

1/. The potential customer should be made to sign that "I <name> have the appropriate authority to apply for a credit facility on behalf of <company name> and that all information completed in this form is accurate.

2/. The trade references should clearly ask for 2 or 3 trade references that have 'no connection, other than as a supplier, to the business requesting credit' - the customers Uncle's business is hardly an appropriate check, if you follow!

To reduce your risk of bad debt, make at least the first payment pro-forma, I go for the first three payments being paid that way if I am not totally convinced by the credit references, set the credit limit fairly low initially and increase it as your trust grows. If they miss a payment, put the account on stop immediately.

Again too many companies are too lax in continuing to supply a bad paying customer and then wonder why the customer can't pay six months down the road. If they can't pay this month, then stop the account!

Finally, one thing you will have to accept is virtually no company sees 30 days credit as 30 days credit, they see that as "End of following month", ie they buy on the 12th March, they expect to pay on 30th April, make sure you work that into your cash flow.

Hope that helps and shout if you need more clarity on any of that. Good luck with the expansion

[RobertB]

Hi IP2,

Very good advice regarding 'no connection, other than as a supplier' I like!

Thanks,

Robert