What should I ask about a dry cleaner’s supplier of hangers, bags and chemicals?
Ask who supplies each item, on what terms, and what happens if they stop. Hangers and bags are easy to replace, but cleaning chemicals may come with delivery rules, storage requirements and a supplier who knows the plant. Request invoices and see whether any item depends on a single source or the owner’s personal account.
Collect the last invoices for each category and list the suppliers. Notice who provides the most, how often orders are placed and whether prices have moved. Ask whether any agreement sets minimum orders, delivery schedules or exclusivity, and who signed it.
Chemicals deserve closer attention. Ask how they are delivered, stored and disposed of, and whether the supplier provides safety documents and handling advice. Find out who takes away used material and whether that arrangement is written down. If a supplier also services equipment, ask whether the two are linked. Ask your lawyer to read anything that binds a new owner.
Then test resilience. What would the plant do if its main supplier were late for a week? Is there a second source for each item? Check the stock on the shelves against the ordering pattern, since a thin store room can hide a supply problem. Ask whether trade credit is extended and whether any invoices remain unpaid. Meet the main supplier if the seller allows it, and ask about their history with the plant. Finally, ask about ordering habits. Does the plant buy in large lots to save on delivery, or little and often? The pattern tells you about cash needs, storage space and how steady the plant’s volume really is.
Key takeaways
- List suppliers by category and check for minimum orders or exclusivity.
- Look closely at chemical delivery, storage and removal of used material.
- Ask whether a second source exists and meet the main supplier.
Related reading
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentHow to diversify your supply chain
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