I need some advise with safeguarding my new venture.
We are busy with a proposal to penetrate the retail market with a combination of niche products, FMC, fast moving consumables, and SMI, slow moving inventory. I need some advise with regards to the agreements between the manufacturer, A, the IA(independent agent), B, and the retailer, C.
Some background and where I need some advise:
We have challange of setting up a warehouse, aquiring stock and marketing the products, to support the supply chain of the sought after retail market. We currently market and sell products direct to the consumer/user with minimal stock, based on active clients and current orders only, limtiting the risk and cost of dead stock.
We have found a sertain retailer which we can use to support this challenge, where the retailer stocks the products, wholesale, with our agents marketing the products independently, but through the retailer so to say, where agents support the sales of the area retailer.
AND this is where I need the advise and only a idea at the moment, I am proposing that the retailer be supplied and invoiced directly form the manufacturer with the suggested retail price negotiated between A & B, creating a direct supply chain between them, until we have grown big enough to support the demand.
The informal relation between all A's and B are great, before and after the retail suggestion, but I need some type of agreement to legally bound me with all the sales made through the marketing of B. At the moment we have full control as we are supplied and supply, but have no formal business model of this new type of venture to base negotiations and agreements on. As all business models flow into new markets, new opportunities arises and I need to safe guard us for the duration of the relationship between A and C.
Is there a type of agreement you lay down before even pitching, what would stop A of saying no to B and walking into C's office the next day?
Will appreciate any advise regarding the above mentioned AND?OR on any other/future challenges that comes to mind.
This is my first thread, hope it makes sense!!