You want to build a successful business, right? Of course, you do. Who doesn’t?

You may have the best intentions to build a successful business, but the odds are unfortunately against to survive beyond five years.

There are a lot of reasons why businesses fail. Owners get burned out, lack of cash flow and unhappy customers can all contribute to a business’s downfall. Looking for vendors that don’t serve your business or your customers well.

The only way to combat that is to know what you control and do it well. That starts with choosing the right vendors to partner with. They’re a major part of your success so you need to get it right.

What Do You Need?

Believe it or not, you have to know what you need before you can start looking for vendors. That seems painfully obvious, but you’d be surprised to learn how many people skip this part.

They kinda have an idea as to what they’re looking for. They’ll pick someone who seems like a good fit and sign a contract with them.

When it comes time to deliver, the vendor is missing in action or providing horrible service. That can impact your staff, your customers, and your bottom line.

These are the questions you need to ask yourself when choosing a vendor for your business.

What’s Your Business?

A lot that goes into choosing a vendor depends on you and your type of business. Businesses in different industries will have different needs. We cover some of the main vendors that you would need to consider for your business.

Dropshipping Partners

Are you starting an e-commerce or FBA business? Finding the right drop shipping partner is going to be a huge piece of your business. They’re responsible for supplying the product, packaging, and shipping the product to your customers.

Software Vendors

Software vendors will provide services like accounting, sales & marketing tools, or a customer relationship management database. There are also vendors who provide phone systems, which can be a big help when you have a big customer service team.

Payment Vendors

If you plan on taking payments online or at a retail location, you’ll need to set up a payment gateway system. There are a lot of vendors in this world that you have to sift through. Some will offer nice perks, like a loyalty program to encourage your customers to spend more at your store.

Product & Parts Suppliers

If you’re selling a product, you need to have someone manufacture that product for you. Product and parts suppliers can make or break your business if they can’t produce a quality version of your product.

What’s Important to You?

You have to lay your values and vision on the table so you can find a vendor to match them. Is price more important to you or the level of service they provide? Hopefully, you’ll find a vendor that provides excellent service at a good value.

You also need to know what your brand is about and how you can meet your client’s expectations. No other type of business needs to know this more than dropshipping.

In the case of a drop shipping business, you’re depending on your drop shipping partner to be the face of your company. Yes, customers will interact with your brand and purchase on your website, but it’s the drop shipper who has to deliver.

You customer is unlikely to be impressed with your brand or service if your product is delivered late or the packaging shows some damage.

Start Looking for a Vendor

You have a great understanding as to what your needs are. Now, where do you start looking for a vendor?

Depending on your needs, you have a few options. The first place is online. You can try a few different searches and see what you find. You’ll probably come across a number of companies that invested heavily in SEO to get at the top of search results.

You want to make sure that you find the right vendor, so go beyond the first page of search results. Go through a handful of websites and see if anything looks interesting.

Another place to look for vendors is through industry groups. There are tons of groups on Facebook and LinkedIn where you can ask for any recommendations.

Keep in mind that some people might view you as competition and may not be inclined to share who their suppliers are.

You’re likely to find a handful of names come up over and over again. These are the vendors that should be added to your list.

Interview Potential Vendors

Once you have your list, pick up the phone and call these vendors up. You want to know right away what kind of service they provide.

Calling a vendor that seems like they’re too bothered to answer your questions is a sign that’s how they treat everyone. It’s a sign to move on to the next one.

Out of the process, there will be one or two vendors that you’re comfortable working with. You can then start negotiating a contract with them.

Negotiate and Sign the Contract

The main thing to remember when you negotiate a contract with potential vendors is that you can always walk away. They probably need your business more than you need them unless they’re a world-class company.

Hire the Best Vendors for Your Business

If you want to stay in business for a long time, it’s important to keep your staff and your customers happy. By not doing so, you’re inviting high turnover rates for both staff and customers. That will cost your business a lot in money and brand reputation in the long run.

One thing you can do is hire the right vendors who will serve your business with excellence. When you’re looking for vendors, it’s important to understand what you need and take your time finding the right vendor.

It’s a choice that has a massive impact on your business.

Do you want more business tips? Check out this article that shows you how you can benefit from a fulfillment center.