In today’s competitive market, getting the most out of your suppliers is more important than ever. By working together and building strong relationships, you can unlock cost savings, improve efficiency, and boost your overall success.

Here at Figured Out Finance, we believe in empowering small businesses. That’s why we’re sharing these key strategies to help you develop win-win partnerships with your suppliers:

1. Choose Your Partners Wisely:

Do your research: Before committing to a supplier, assess their reliability, expertise, and financial stability. Check references, compare pricing, and ensure they can meet your delivery needs. Resources like the Personal Property Securities Register can help you verify their financial health.

2. Offer Incentives for Early Payment:

Larger deposits: Consider offering larger deposits to secure better pricing, faster deliveries, and improve your negotiation leverage. However, weigh the benefits against the upfront costs.

3. Shift Your Mindset: From Buyer to Partner:

Think long-term: View your suppliers as partners, not just vendors. Work collaboratively to identify potential bottlenecks, categorize your purchases based on importance (critical, leverage, etc.), and explore opportunities for joint resource sharing or bulk discounts. Consider partnering with other small businesses for even greater collective bargaining power. Resources like the Small Business Collective Bargaining guide can help.

4. Build Trust and Transparency:

Open communication: Keep your suppliers informed about your business processes, new products, and promotions. Address any concerns they may have and, most importantly, pay invoices on time!

5. Understand Their Business:

Take the time to learn about your suppliers’ goals and challenges. Respect their preferences for order timing and quantities. This builds trust and allows you to anticipate potential supply chain issues.

Still Struggling with Cash Flow?

The Australian Small Business and Family Enterprise Ombudsman is working towards establishing timely payment practices for small businesses. However, you might need additional financial flexibility in the meantime. Figured Out Finance can help. We offer a variety of financing options to help you invest in early payments or new systems that can streamline your supplier relationships.

By implementing these strategies and fostering strong partnerships with your suppliers, you can create a more efficient and successful business for everyone involved.