What should a yarn shop owner document about hand-dyed yarn suppliers before selling?
Record each dyer’s name, what they make for you, how orders and payment work, how long lots take and who at the shop is their contact. Include any informal arrangements, such as colours made just for your store, so the buyer does not lose them by accident.
Independent dyers often work by relationship, not contract. Colours may be made for your shop, new batches may be offered to you first, and delays may be forgiven because you have worked together for years. None of this is visible to a buyer unless you write it down.
Create a profile for each dyer: contact details, product range, typical order size, lead time, how colours or lots are reserved and how payment is handled. Note which items are exclusive to your shop and whether that is written or only understood. Record the dyer’s own capacity, since a small studio can run out of time during a busy season.
Add history. Which dyers have been dependable, and which have had delays? Which skeins sell fast? Show the buyer how you plan orders around the dye schedule. Ask the dyers whether they are comfortable being introduced, and arrange conversations before closing. If an arrangement matters to the sale, ask your lawyer to include it in the agreement. A clear record helps a buyer keep the supply and protects the dyers’ trust in the shop.
Key takeaways
- Write a profile for each dyer, including exclusive colours and informal habits.
- Note each dyer’s capacity and lead time during busy seasons.
- Arrange introductions between dyers and the buyer before closing.
- Ask your lawyer to record any arrangement that matters to the sale.
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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 CanadaGovernmentWhat is inventory
- 03Business Development Bank of CanadaGovernmentHow to diversify your supply chain
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