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- iHaveNet.com: Small Business Guide
Real Small Business
A good relationship with a supplier can be profitable for you and them. Strong links with your vendors provides strategic benefits ranging from better prices to access to important business information and resources. This kind of partnership doesn't come easily. It needs to be nurtured over time.
First off, you must choose suppliers that best match your company's needs and culture. Next, you have to hold up your end of the deal by being a loyal and trustworthy customer.
These tips below can help you through this process.
Go beyond price
No company wants to overspend, but building a successful supplier relationship requires thinking about more than just price.
The value of a vendor includes how well it is able to serve your company's needs, as well as the needs of your customers. When assessing potential vendors, consider a full range of factors, including:
- What does the company charge?
- How will it ship its products, and how much will that cost?
- Does it offer discounts or other incentives?
- How quickly can I expect my order?
- How will it manage my account?
- How does it handle returns or other problems?
- Is it willing to customize orders or handle other special needs?
Fully investigate supplier finances
It is common for suppliers to investigate the financial health of their customers, but it pays for your business to investigate a supplier's financial condition too.
By getting a credit report on a supplier, you will have a clearer picture of its potential as a long-term strategic partner. For example, a supplier with credit problems may have trouble meeting its obligations, which can have an impact on its ability to ship orders in timely manner.
Check supplier references
Gain a first hand account of life with a potential supplier by contacting a supplier's current customers.
Start with standard concerns such as price, delivery, and other issues that relate to your business. Also be sure to ask out how the vendor handles problems, since even the best relationships have their occasional glitches.
Maintain good faith
Your ability to strike a long-term partnership with your suppliers depends a great deal on how you manage your end of the relationship.
Strive for a business relationship of mutual trust and respect. Start by paying your bills on time, which can go a long way to fostering good will and can help you out when you need your supplier to go the extra mile for you. Avoid quibbling over every bill, or trying to get a better price on everything they sell -- remember, your suppliers also need to make money. Also try to keep your expectations in line. As a new customer, don't expect to immediately get the same kind of attention that a long-standing customer receives -- that's a privilege you may have to earn over time.
Be clear with your needs
Keep the lines of communication open between you and your suppliers. Clearly indicate any special needs you may have.
For example, if you need a certain order to be rushed, ask the supplier what delivery options are available to you based on your specific deadline. Don't expect to get something for nothing -- again, you should anticipate having to pay for both the products and value-added services you receive.
Preserve confidentiality
Your company can benefit over time through the open exchange of information with your key suppliers.
Be sure to treat all strategic information confidentially, and expect the same of your suppliers. If asked, be willing to sign a non-disclosure agreement, and abide by its terms. This is often not so much a matter of trust, but a legal way to ensure that proprietary data stays that way.
Check out these articles intended to help you out with your business purchases:
Small Business Guide
- Starting Up Your Business
- Coming Up With a Winning Business Idea
- Common Startup Mistakes
- The New Rules for Startups
- Business Incubator FAQs
- Naming Your Business
- Researching Your Business
- Your Personal Savings
- Registration, Licenses, and Permits
- Getting a Tax ID Number
- Fast-Growth Startup Resources
- Structuring Your Business
- Overview: Corporations
- State Offices of Incorporation
- Incorporate Out of State?
- Writing a Partnership Agreement
- Choosing a Board of Directors
- Basics of a C Corporation
- Basics of an S Corporation
- Basics of an LLC
- Basics of a Sole Proprietorship
- Basics of a Non-Profit Corporation
- Basics of a Professional Corporation
- Basics of a General Partnership
- Basics of a Limited Partnership
- Your Company's Public Relations
- Elements of a Successful Public Relations Campaign
- How to Use Your Press Coverage Effectively
- Press Releases
- How to Write a Successful Press Release
- Sample Product/Service Press Release
- Sample Commentary Press Release
- Sample Event Press Release
- Sample Tips Press Release
- Sample Personnel Press Release
- Effective Competitive Analysis
- Managing Purchasing to Maximize Cash Flow
- Top Six Pricing Mistakes Businesses Make
- How to Avoid Lowering Your Prices
- Bidding Basics
- Hiring Staff
- Creating an Effective Job Description
- Do You Know How to Pick Them?
- Little-Known Hiring Resources
- Classifying Contract Workers
- Tips for Successful Interviewing
- What You Can't Ask in a Job Interview
- New Hire Paperwork
- Small Business Insurance
- Types of Insurance for Small Businesses
- Small Business Insurance FAQs
- Insurance Resources for Small Businesses
- Home Office Insurance: Myths & Realities
- Small Business Resources
- Government Resources for Small Business on the Web
- Resources for Women Entrepreneurs
- Fast-Growth Startup Resources
- Small Business Security Resources
- Taking Time Off
- Your Pre-Vacation Checklist
- How to Take a Vacation
- Learning to Delegate
- Getting Away When You Can't Get Away
- Preparing for Tax Season
- Year-End Planning Tax Savers
- 10 Ways to Pay Less in Tax
- 25 Common Business Deductions and Expenses
- Avoid These Common Errors and Audit Triggers
- Understanding the Home Office Deduction
- Corporate Income Taxes Primer
- Employment Taxes Primer
- Sales Tax Primer
- Sole Proprietorships and Partnerships Tax Primer
- How to Get a Filing Extension
- Year-End Reconciliation
- Getting the Most from Your Accountant
- Developing Accurate Financial Projections
- Cash Flow
- 10 Ways to Help Increase Your Cash Flow
- Cash vs Accrual Accounting
- Bookkeeping and Record Keeping Basics
- Quick Ways to Get Through a Cash Crunch
- Projecting Cash Flow
- Cash Flow Triage
- Getting Funding
- Cash Flow Through Factoring
- Small Business Investment Corporations (SBIC)
- Traditional Funding Sources
- Non-Traditional Funding Sources
- Your Company's Credit
- How to Read a Business Credit Report
- Credit Terms Glossary for Your Small Business
- How to Protect and Improve Your Business Credit Rating
- Give Your Business the Financing Edge
- Employee Compensation
- Employee Benefits
- Bonuses: How To Be Fair
- Workers' Compensation Q&A
- Keeping Workers' Compensation Costs Down
- Payroll Management Choices
- Key Elements of Payroll
- Working with a Payroll Service Provider
- How to Create a Business Plan
Starting Your Own Business - Building Successful Supplier Relationships
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