Build a Belt & Boot B3

1.) At Nelson’s stage in development, I would consider sourcing the hides that are often used direct to save the money. It seems the hides that are most often used may be able to predicted and allow for the lead-time. It sounds as thought the more exotic skins are not able to purchase direct. He would be able to try sourcing direct and review the cost savings, and if it’s interfering with the boot production. If he is unable to meet the two-week making of the boots ordering direct it would not make sense for the company to order direct.
2.) One way to keep inventory levels in control would be for Nelson to manage his inventory effectively and have a safety net in place for his hides that are always consumed. To have a certain percent like 40% set that inventory may not fall below. That way he should always have sufficient hides available and this would have lead times or possible theft considered especially if ordering direct. He also may want to consider investing in system that monitors his point of sales, therefore monitoring inventory in real time. He may also want to review his logistic network.
3.) If Nelson would like to grow his business faster, get his brand out to other demographic areas where is product would sell and minimize his risk and investment but maximize his opportunity for success he should franchise. Nelson should also be willing to keep an open and collaborative relationship with the franchisee, to help assist in training and better working relationships. Advantages to franchisee: people have acess to known brand name, trademark, assistance in location decision and buying decision, acquiring rights to trade area, lower risk of failing, standardized marketing and operational procedures, access to lower cost of capital.
Advantages to Franchisor: motivate to manage on site, local identification of