Thank you John! I meant to clarify this - I have product "XYZ" that I plan to import to the US. I want to approach a potential Customer and say, " I am from "ABC, Inc" based in Philadelphia, PA, we import Product "XYZ" to the US and I would like to speak to your Purchasing department for a demo and present our samples."
Wouldn't the above approach add more credibility than approaching the customer - " I am John Doe, I have "XYZ" product that I import……etc"
***Credibility to what end? What credibility do you need to sell twenty four retail packs (one case) of 16 oz curried nuts to one store? How much credibility do you need to ask " I am John Doe, I have "XYZ" product that I import……etc" ? You need no credibility in this case because no one is depending on you to any degree. They want new ideas to test. They place a test order. If you screw up a test order, then you know, then they know, and there is no problem.
Now, if you want to sell 1000 cases of 16 oz nuts to a store, then you will need some credibility. Do you think the fact you are incorporated will give you the necessary credibility?
In the scenario of 1000 cases you need credibility for one of two reasons: 1. can you deliver a product on time to specification that will not cause the retailer problems, such as lawsuits, QC issues, etc. 2. In the case where you are selling a commodity, and therefore someone else also sells your item, the retailer wants you to have enough credibility to talk their regular supplier down in price.
Incorporation will not answer those concerns. In fact, no legal structure or name will answer those concerns.
One more thing, there is no legitimate reason a retailer would buy 1000 cases of 16 oz nuts to a store from a start-up company. Retailers do not take risks. The only plausible reason would be if they have no intention of ever paying you, then 1000 cases of 16 oz nuts to a store makes sense. Any effort to protect yourself from theft in this scenario will not work. If you ship, you will lose.***
In my case, I am about 100% sure about what I want to import which is a nut and it is always in demand in regular stores and Specialty store and Online only stores. Am I jumping the gun?
***You are jumping the gun only if you do not first test your hypothesis. The goal in testing your hypothesis is to find out why they would work with you. Why are you better than anyone else in what you propose to sell. (Plan A is because it isnew, the qtys are no risk, and you are the only one.)***
My idea of incorporating a company is to create a platform for me to work on and test my hypothesis.
***The platform is the product, not the legal form.***
I also plan to add more products down the line. Regarding the name for the company I was thinking more in the lines of " XYZ Enterprises, LLC" or " XYZ Trading Group, LLC" etc... I would appreciate your comment on that as well.
***Why not just your name and nothing else? ****
Feel free to forward this by email to three of your friends.
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