Ensuring suppliers and partners are suitable

As you grow you need to be sure that your suppliers and partners can keep pace with you.

Being let down by delays on crucial suppliers, software problems or support networks can be damaging to the growth plan and also devastating to your brand and reputation.

 

As you grow you should benefit from economies of scale.
Use this to negotiate better prices and terms from suppliers. You might want better delivery terms, availability of stock etc.
In start-up phase it is common for suppliers to refuse credit terms but as you scale up you will have established a reputation and track record so you might have a dual negotiating position – lower prices and realistic credit terms.

 

These can be critical – you improve profits and cash flow. See the section on viability.

 

As the scale up progresses these relationships need to be kept under constant review. If you neglect these relationships then key stakeholders may not behave as you would like or expect.

 

Keeping the relationships strong will help the long term growth and sustainability.