Picking good suppliers and partners is critical to your company’s success, especially a smaller, growing business. Pick a vendor that is difficult to work with, doesn’t provide a service as promised, isn’t there when you need help and/or hits you with hidden fees, and your company could be in serious trouble.
So what steps can you take to help ensure you don’t wind up in a bad business relationship? Here are 12 strategies for selecting the right business partners and suppliers.
1. Make a list of your requirements and expectations. “One of the most important parts of creating and maintaining vendor/partner relationships is to have very clearly spelled out expectations at the onset,” says Diane Helbig of Seize This Day. “Establish an understanding of what each party will bring to the relationship, when and how. That gives you something to measure the relationship against and let’s your partner/vendor know not only what you want from them, but what you will be bringing to the relationship.”
“Create a grid with your most important supplier requirements and assign a weight to each. Then evaluate each supplier you interview on each of those criteria,” says Sheri Tate, senior vice president, Product Strategy, ChargeItSpot, a provider of phone charging stations for retailers. “This takes the emotion out of the decision process and allows you to analyze each independent attribute such as price, attention to detail, prior relevant experience, etc., to see where they fall. Ultimately, the decision is based on more than just the grid, but it is one more tool in your toolkit to use during the selection process.”
And remember, “project success is contingent upon your provider having a clear understanding of requirements upfront,” says Vinnie Schoenfelder, CTO, CapTech, a management consulting firm. “Without it, you run the risk of encountering project delays.”
2. Seek out vendors who are familiar with your space – and have the necessary expertise/personnel. “A vendor that is already tailored to your type of business will offer immediate value,” says Kean Graham, CEO, MonetizeMore, an ad tech firm. “They will already know your pain points and how to solve them because they already [understand] your industry.”
“The most desirable vendor [for an SMB should] have proven expertise in the small and midsized markets, understands today’s pressing budget and security challenges and will work diligently with you to resolve these issues, while also factoring in your baseline budget and the need to [provide a positive] return on investment,” says Brenda Hudson, vice president, Inside Sales, Insight Enterprises, a provider of hardware, software, cloud and service solutions.
But “do not assume that just because a third-party provider offers a particular service that it has the expertise that maps to your specific needs,” says Schoenfelder. “No two projects are alike. A good partner should not only have qualified personnel with the skills needed to execute your project, it [should] have experience in your industry and an awareness of how that may affect the design and execution of the project.”
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