Start Up Business Advice

[22]

The initial message was deleted from this topic on 26 June 2024 at 17:28

[PBDirector]

Yes, you're right to be thinking these things through. I'd be extremely nervous in the same situation.

If this guy really has your best intentions at heart, what's to stop him selling to you as a customer at £Xk and then you resell it at £Yk?

He benefits from increased sales, you benefit from being a middleman, and it's got nothing to do with the rest of the family. Other than they should be delighted at increased sales!

I suspect the answer to that question will reveal true colours.

EDIT: Would he get the family board to sign off on a supply agreement that they will supply you X units on demand by you at Y price? Then you can crack on and sell them risk free... If not then you've uncovered the family problem!

Edited by PBDirector on Thursday 10th March 17:49

[Steve H]

I can't see why you need to be involved with VAT straight away, you'd need to be well above the current number of items to worry about the thresholds for that and won't it be zero VAT as a food sale anyway (?).

Is there any reason why you can't buy this stuff and sell it on, you'd be able to keep control of the situation that way.........

I'm kinda curious as to what food product is £2k a go and could be more than double that!

[Frimley111R]

Steve H said:

I'm kinda curious as to what food product is £2k a go and could be more than double that!

A cooker?

[Charlie1986]

is it whale vomit?

[Adz The Heeb]

Giant panda semen?

[southendpier]

I don't want to burst your bubble...but you have become his customer ( he sells to you).

He then takea 50% of the profit you make selling to your customers

Step back. Think.

There are no friends in business.

[Steve H]

TBH I'm struggling to see a good way of protecting you with the way you'd want to do this, there may be contractual agreements that you could try but as soon as it goes legal they will start looking more closely than they will at your casual agreement with your friend.

It would probably work for a while as it is but at some point you've go to assume the "family business" will want to stop paying you thousands for doing very little. They didn't get wealthy by giving it away.

[DSLiverpool]

Op your describing being a commercial agent and these contracts are straightforward to implement but can get messy in execution.

You've nothing to lose sell a few see what happens ?!?

Now - what the fk is it !

[trickywoo]

Are the current buyers using the product themselves or are they in turn selling it on?

[andy-xr]

I've done something similar for a company, I set it up as they invoice the customer, I just find them, make the intro and do everything leading up to the sale and then send the company a bill. The company invoices the customer directly and the customer has a relationship with the company.

[DSLiverpool]

andy-xr said:

I've done something similar for a company, I set it up as they invoice the customer, I just find them, make the intro and do everything leading up to the sale and then send the company a bill. The company invoices the customer directly and the customer has a relationship with the company.

And for any subsequent orders are you reliant on them telling you or is it a one off type thing ?

[snobetter]

Truffles?

[andy-xr]

DSLiverpool said:

andy-xr said:

I've done something similar for a company, I set it up as they invoice the customer, I just find them, make the intro and do everything leading up to the sale and then send the company a bill. The company invoices the customer directly and the customer has a relationship with the company.

And for any subsequent orders are you reliant on them telling you or is it a one off type thing ?

In the case I referred to it was more of a one time purchase and follow on account management