STARTUP MANUAL

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34 CASE STUDY: JODIE FOX, CO-FOUNDER OF SHOES OF PREY How to Find Suppliers When we started Shoes of Prey, we departed from how things were typically done in the retail industry. We wanted to create custom-made shoes on-demand and so, we needed to find the right suppliers to make it work. Depending on your situation, and what you want to create, there are several ways to find suppliers. And there are some things you should keep in mind when you do. If your product already exists If you are looking to make something that already exists, you can search using Alibaba or Google. If you need to learn about the industry Trade fairs are a great way to learn about different products as well as speak to manufacturers and suppliers. We attended the Canton trade fair, which is held in Hong Kong each year. It’s broken up into a series of weekends, each themed to a different set of industries. Even if you don’t meet your supplier at the fair, you may be directed to someone else who can help. If you are doing something that has not been done before If your product does not exist, you will need to get on the ground and speak to suppliers who are creating products in the vicinity of what you are doing. We approached suppliers who were already customising shoes on demand but on a small scale, for example. Talk to them about your idea and how they might work on executing that vision. When visiting factories, look out for the following: Identify how much they can produce every single day (including weekends) - can they do every step of the process in their factory or do they outsource? Look for small things as an indicator of bigger things - for example, fire and safety equipment, happy staff, machinery in good repair and a purpose-built facility. Speak with the decision maker in the factory - it’s difficult otherwise to advance negotiations or change something down the track. Ask questions and watch their body language (for example, "where’s your office?"). Assess the quality of the product and avoid subcontracting - what other brands do they work with? Seek references from those brands. Don’t just look at samples, assess the quality of the items at the end of the production line. Finally, don't underestimate the importance of fashioning a brand, so suppliers will take you seriously and buy into your vision. 34
35 DISPUTES WITH CUSTOMERS AND SUPPLIERS Unfortunately, even if your startup has a great product which customers love, there may come a time when you find yourself in a dispute with someone that you are working with or someone that you are working for. These types of disputes are tricky for a number of reasons: • you can lose a customer and all of the revenue that the relationship might have generated going forward • there are reputational risks, which are a particular issue if your startup has a social media presence • if the dispute is with a supplier, you may need to find a new organisation to work with, which can have significant cost implications • if the dispute is very serious, you could get sued or find yourself needing to sue someone • a dispute will take time away from the most important thing for any founder - running your business Disputes commonly arise because of a difference in expectations between you and your customers. A customer may be upset because what they thought your business would provide, the quality of the product or the delivery speed differed to their expectations. In this context, disputes will unlikely begin with a letter threatening legal proceedings. It’s much more likely that you will get a call or an email from the person who is unhappy asking for you to fix whatever the problem is or to refund their money. providing isn’t available to customers when they want it, is operating too slowly or has glitches. If you provide a print on demand business, it may be because the quality of the physical products that you produced aren't up to scratch. Quick Tip Ensure your business terms and conditions include suitable limitations of liability and warranties as to the level of service or quality of product you provide to limit your risk. Doing this can provide you with some measure of protection if a customer tries to sue you for damages they claim to have suffered as a result of a failure in the product/service you have provided. The reasons that a dispute with a customer may arise will depend on what your business does. If you have a SaaS business, disputes may arise where the service you are 35
Page 1 and 2: STARTUP MANUAL: A LEGAL HANDBOOK FO
Page 3 and 4: 3 Building a Team Employee or Contr
Page 5 and 6: 5 ABOUT THE STARTUP MANUAL Over the
Page 7 and 8: 7 BENEFITS OF DISCRETIONARY TRUSTS
Page 9 and 10: 9 RAISING CAPITAL One of the most c
Page 11 and 12: 11 TYPES OF INVESTORS AND WHAT THEY
Page 13 and 14: 13 INVESTMENT PHILOSOPHIES FROM LEA
Page 15 and 16: 15 HOW MUCH CAPITAL DO YOU NEED TO
Page 17 and 18: 17 CASE STUDY: MATT SCHILLER, CEO O
Page 19 and 20: 19 While using a convertible note m
Page 21 and 22: 21 Term Explanation Round terms How
Page 23 and 24: 23 LEGAL DOCUMENTS What is the poin
Page 25 and 26: 25 SHAREHOLDERS AGREEMENT Your shar
Page 27 and 28: 27 You can download the cap table t
Page 29 and 30: 29 INTERN OR EMPLOYEE Startups may
Page 31 and 32: 31 CASE STUDY: CLIFF OBRECHT, COO A
Page 33: 33 DEALING WITH CUSTOMERS AND SUPPL
Page 37 and 38: 37 A CUSTOMER CENTRIC APPROACH TO R
Page 39 and 40: 39 CASE STUDY: GILLIAN FINDLAY, COO
Page 41 and 42: 41 CASE STUDY: EVAN TAIT-STYLES, CT
Page 43 and 44: 43 CASE STUDY: ELIZABETH KAELIN, FO
Page 45 and 46: 45 Importantly, lodging an Australi
Page 47 and 48: 47 PROTECTING YOUR TRADE MARKS In a
Page 49 and 50: 49 FINAL WORD Australia’s startup
Page 51 and 52: 51 Board of Directors A group of pe
Page 53 and 54: 53 External Capital/ Investment Mon
Page 55 and 56: 55 Pay to Play A clause which accom
Page 57 and 58: 57 ABOUT LEGALVISION LegalVision is
Page 59: 59 OUR AWARDS 2016 Innovator of the

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