You're Asking For The Wrong Deal

Before you negotiate with your supplier, run this by finance. Most founders negotiate blind. They ask for better terms without knowing which terms actually matter most to their business. Finance can tell you. Here's what to model before any supplier negotiation. Payment term extension. What's 30 days extra worth in cash flow? If you're going fast, this could be worth 50K in working capital. Now, next is deposit reduction. What if you paid 30% upfront instead of 50%? How much cash stays in your account. Price discount versus terms. A 3% discount sounds good, but is it better than net 60? Do the math. MOQ reduction. Smaller orders might cost more per unit, but what's the carrying cost of sitting on 6 months of inventory? Finance should model every scenario before you negotiate because the best deal depends on your cash position, your growth rate, and your inventory turns. What's best for a bootstrap brand is different from what's best for a funded one. Send this to your finance person before I negotiate with suppliers, price, terms, or deposit.