Nibletz Staff
When you are just starting out in business, you might have the idea that your big idea is all you need to succeed. But the truth is a little different. Whether you have a product or are selling a service, the quality of that offering will be primarily dependent on the quality of your suppliers. Developing a good relationship with suppliers of raw materials or services is essential for any business, but for newcomers, it can be incredibly difficult. Here are some of the issues you will face – and how to solve them.
Finding the right suppliers
First and foremost, when you have no experience of ordering raw materials or services, how do you know which supplier to choose? Finding high-quality partners can be tricky when you are just starting out, but you can ease the pain somewhat by asking your business network for help. Trial and error will also come into play, of course, but make no mistake about it – finding the right partner can have a seriously positive impact on your products and services.
Communication issues
Hen you start to work with new partners and suppliers, it’s vital to get everything down in writing. Everyone needs to understand their responsibilities from the outset, or you can expect some level of communication breakdown. You also need to lay the necessary infrastructure to share information and discuss when and where each party will be available to talk and discuss issues.
Organization and management
As you develop relationships with more suppliers, things can quickly get to an unmanageable state. There are solutions available – the easier management of any type of contract with Exari’s integrated software suite might be suitable for your business, for example. Ultimately, the more straightforward you can make your contract arrangements, so they are easily accessible, the better.
Finding consistency
Nothing will make you happier than finding a supplier that always delivers in the consistency stakes. But it isn’t as uncommon to find one of these great companies as you might think. The trick as a startup company is to make sure you find them as soon as possible. Ask around for evidence of previous customers and talk to them, to help you get a better indication of the supplier’s consistency levels. And always ensure you are making regular checks on quality control. Don’t forget, if a vendor’s product quality goes down, so will your product quality – but your customers will put the blame solely on you.
Cost
The cost of finding new suppliers can be enormous, especially if you are just starting out in a new relationship. However, if you find the right partners, it’s worth it. Over time, you will become a loyal customer, and offered more trust. And inevitably, that gives you a lot more buying power than you will enjoy at the outset of your relationship. You will find that suppliers will be happier to offer you better deals and discounts, and you may even be able to start discussing exclusivity terms – which will help you prevent the competition from stealing a march on your market share. Good luck!
