What new business owners should know about vendors

Before beginning a new business in Minnesota, an entrepreneur will need to find vendors. Because the right suppliers are essential to business success, this process should not be taken lightly.

According to StartupBizHub.com, a new business owner can make use of resources such as the Chamber of Commerce and the Yellow Pages to identify local vendors. In addition, a new business owner should use online databases to find and research vendors. 

Entrepreneur magazine warns that while price is an important factor in choosing a vendor, there are many others to consider, as well. For example, if the price is right, but a vendor occasionally sends the wrong product or the wrong amount of product, or the deliveries are often late, it could cause delays in sales and service that upset business function. Location may also be a factor in receiving orders on time, and a local supplier may make deliveries that save considerably over shipping costs. 

Vendors may do more for a company than simply supply product. They may also function as business partners in some ways, alerting the owner to new opportunities and offering advice on new products and services as they become available. A vendor may even become a source of funding for a business owner who requires more capital.

Relationships with vendors must be reconsidered occasionally to evaluate whether they are working well for the company’s purposes. Even when issues such as unreliability and uncompetitive pricing become apparent, it may be worthwhile to contact the vendor and see what the source of the problem is. It may be possible to salvage the relationship with a new contract and better terms. However, an owner should be ready to find a replacement if there is a more favorable situation available.

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