Your approach to suppliers needs to be part of your strategic plan since almost every company, whether product- or service-oriented, is dependent on suppliers. Many business owners seem to get this supplier issue backwards. They think that because they write the order, they’re in the dominant position and can exploit it with unreasonable demands, including personal perks.
Let’s get this right–you need good and reliable suppliers. When you find them, treat them like gold. Work as hard on building a good supplier relationship as you do building a relationship with your
customers. And be loyal to your good suppliers. They are essential to your business’s good health and growth. They are a nuanced bootstrapping
strategy.
Let’s briefly look at all the ways suppliers can impact your company.
- Quality: Supplier components can positively or negatively affect the quality of your product. Higher quality increases customer satisfaction and decreases returns, which adds cash to your
bottom line.
This article was written for entrepreneur.com April 6, 2010
Bob Reiss is the author of Bootstrapping 101--Tips to Build Your Business with Limited Cash and Free Outside Help. He has been involved in 16 start-ups, is a three time INC 500 winner, a graduate of Columbia University and Harvard Business School and the subject of two Harvard case studies. He is a frequent speaker at University Entrepreneurial classes."
