How to choose a right vendor for your business

Monday, August 17, 2009

How to choose a right vendor for your business

You give every ounce of your energy and effort to start a new business. What you require now is a terrific start. 

Your new business requires many things to boost your start. 

You perhaps need  proper visibility, a fresh marketing approach and above all a right vendor among many other things that you may need to provide a perfect start for your business

How will you choose the right vendor for your business? 

There are various factors that come into consideration when you choose a vendor. 

To pick the right vendor, involves observation of vendors while you interview them, never choose a vendor without looking at his past record. Always be careful in selecting a suitable vendor for your business.

Here are few ways to select the right vendor for your business.
  • Figure out the financial standing of a vendor. A vendor may be dealing with more than two firms. Will he be able to transact bills on time? Lack of funds may delay the trade, which could again affect the relationship between a vendor and the one who owns a business. Always choose a vendor with a sound financial background, so that you won’t have to worry about cash on time.
  • You should also inquire a vendor’s service record. There are few vendors who promise a lot but never deliver what they promise. They never deliver money on time. A vendor’s poor service record could nail your business. Therefore, try and gather information from the vendor’s earlier dealers to know more about his dealings.
  • Try and understand the vendor’s business tenure. Before selecting the right vendor, you must collect information about the vendor’s business track record. His years in business and few key business achievements.
  • It’s also important to know more about a vendor’s office set up – whether he has a proper business office set up. Does he have someone who picks the call immediately? Proper communication is a must. A look at his office will, probably, say a lot about the vendor’s business ways.
  •  You should also make sure that a vendor’s sales outlet is located at a proper location. It may not be a prime location, but it should be a decent location.
  • As a business owner, you should inquire about the vendor’s clients. Do they belong to the type who will buy your goods or services? If not, try and look for some other vendor. There is no use of selecting a supplier who doesn’t have a ready market base of your goods or services.
Finally, if you are satisfied with the above conditions, finalize an agreement that has all the clauses. Show it to the vendor and give him some time to decide on the future course of action.

1 comment:

nabanita said...

Hi Rajiv,

Long time. How have you been? Good to see you online.

Regards, n.

Related Posts Plugin for WordPress, Blogger...