Managing Supplier Relationships as a Start Up
It's always a smart idea for any business owner to keep a tight rein on expenses. If you can do things for yourself and not call anybody else to help, then you should do that if you have the time and the capacity. However, at some point you will still need to start outsourcing tasks.
For example, if you are a delivery company and at first you deliver handmade goods yourself locally, you might then decide to turn to a
freight forwarder when it comes to shipping around the world. Either way, you need to ensure that you are meeting the needs of your customers to be able to keep up with the demand of your business. There are always ways to redress when things happen, but it's always better to be forewarned so you can protect yourself in the case of something going wrong. When you are dealing with supplies for the first time it can help you to learn how to deal with them as a business owner.
With this in mind, here are some of the best ways that you can deal with suppliers when you are a startup business.

- Choose cost effective but not cheap. When you are seeking out your suppliers you need to make sure that you don't blow your budget. As a start up business, it is understandable that you are likely to have a tighter budget and you'll need to stretch this. You shouldn't however be tempted to go for the cheapest option because it's very rarely worth it. Badly designed websites require a lot more money down the line, and badly packaged products mean that you might have to upgrade your warehousing steam. If you are bootstrapping, take a look at other smaller businesses who are also starting up and go into business at the same time.
- Don't forget your due diligence. Researching your supplier is a must. The marketplace can be crowded and it can be difficult to find a supplier on whom you can rely. Take your time and carry out some research, because even if the slightest supplier has been recommended to you, you need to make sure that they are the right person. A recommendation from one business doesn't mean that it's going to be the correct one for your business, so make sure that you choose wisely.
- Speak to more than one person. It's tempting to go with the first supply that gives you a quote, but it's not the smartest idea. If you're making large purchases for your home, it's likely that you would compare two or three different quotes. Instead of allowing your enthusiasm to get the better of you, make sure that you are taking your time to make this decision. The right supplier does matter, and it will say a lot for your business if you are willing to invest properly.
- Always, always have a contract. Protecting yourself and your small business is vital. Make sure that your contract is as specific as possible, including when your pay days are and when your supply should expect a payment from you. Often, contracts are standard things that are drawn up to suit their supplier, so make sure that you have somebody with the legal eye to read through it and ensure that it suits you, to.









