Source Materials and Supplies
Determine what supplies and materials you will require to create your product or service, and sources for each. This will be a critical step toward completing the Financial Section of your business plan.
View the Example: Materials and Supplies
Action
If you have set up a working copy of your business plan using the Shell™, this information will be entered under section 4 “Operations” under the heading 4.23 “Materials and Supplies.”
Download the Materials and Supplies Worksheet.
To complete this Element you will need to gather all information from different suppliers and compare their literature and terms, then:
- Consider your financial ability and how it fits with the supplier terms.
- Ensure that you can meet your customer obligations and stay on top of inventory costs.
- In the case of human resource suppliers, consider subcontracting and establishing a 15 or 30-day payment policy to give yourself room to collect from clients before having to pay your resources.
- Decide which suppliers you will use. If possible, get a letter of commitment from them or complete their credit application and open an account.
- Using the Materials and Supplies Worksheet Make a list of your materials, supplies and sources.