GREAT 53 IDEA: Expand Your Vendor Network

Is your business overly dependent on one or two suppliers for the things you need on a regular basis? What would happen if your primary supplier called today and said he or she unexpectedly ran out of the materials you need? What would your employees do if the delivery truck broke down in Ohio, and your raw materials were sitting on the side of the highway for three days?

Although most small business owners prefer to establish stable, long-term relationships with vendors and suppliers, savvy entrepreneurs always find alternative sources for key products. Being loyal to vendors is important, especially if what you need is in short supply. But things change. You have to protect yourself and your workers by having alternative sources on tap.

Seek new sources of supplies and raw materials:

• Google companies selling what you need. Download catalogs and price lists from competing companies.
• Keep track of all the information even if you don't think you'll need it.

When you start comparing prices from suppliers, you might find you are paying too much. If you do find a better deal, there's nothing wrong with going back to your primary suppliers and asking them to meet or beat the prices you found. Of course, your current suppliers don't want to lose your business, so, they may propose a discount or extended payment terms to maintain the relationship.

Remember, the quickest way to expand your business horizons is to attend an industry trade show or professional meeting. You'll get up to speed on all the new products, suppliers, and gossip—all in one place.