As you start your business, you likely spent a great deal of time deciding who you wanted to bring in as a partner or for some other role that you would work with closely. This type of approach is a wise one as you do not want to cause unnecessary issues by hastily entering into business relationships. This care should also be taken when you consider the suppliers your company may work with.
Even if you have a considerably small business, you will likely need to work with vendors or manufacturers in some way. Therefore, you will want to make sure that you do not get duped into a business relationship that ends up more harmful than beneficial. Fortunately, many factors could point to a strong potential candidate.
What to look for
As you review your supplier or manufacturer options, those available to you may depend on the exact services you need. Still, you may want to take the following aspects into consideration when determining who you may want to work with:
- Look for companies that show stability by having been in business for a long time.
- Evaluate reliability by assessing which options fulfill orders on time and in full.
- Determine which companies offer the best prices for their services.
- Consider the location of the suppliers or manufacturers to possibly save on delivery time and freight charges.
- Assess which suppliers may offer the latest and best products and services.
- Pay attention to their willingness and ability to work with you and your needs.
While you may not find every aspect you are looking for with a single supplier, that may not be a con. It may actually benefit your company to work with multiple suppliers who could provide your company with its needs in a timely manner.
While you may think that you have found the perfect suppliers or manufacturers, you may not want to simply take their word that they will perform their duties as you believe. Instead, it may be in your best interests and those of your company to create contracts to better solidify the business relationship. These agreements can help each party understand their roles and the expectations that need meeting.
As with any type of contract, you will want to make sure that the terms are legally binding. Therefore, you may want to consult with your legal counsel on drafting these and other business agreements.