Getting Started Overview

Everything you need to know about starting a business in a nutshell from Ventureport.org™—the Online Outfitter for the Entrepreneur’s Journey

Overview: Vendor Relationships

Many of us overlook the critical role played by vendors. For many start-ups, vendors are almost like a partner, in that they will provide products or services critical to your success. Many start-ups do not pay proper attention to their vendor partnerships, selecting friends or referrals without proper due diligence. Unfortunately, even the most well-meaning vendor can let you down if for any reason that is not up to providing the products or services you expected, on the required timeline, and at the required price.

Best advice: treat the selection of vendors as you would employees. Spend time to get to know them. Make sure they have the capacity to meet your needs. Try to find out if they have any pending business that could affect your product quality or service levels or timing at any later date. Try to ascertain that you are neither too big a client or too small to meet their needs, and that what you request falls into their usual type and flow of business.

You will also need to determine if they require credit terms you cannot meet.

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