Money is one of the major factors that determine the success or failure of a new business according to Byron Dixon, CEO and founder of biotech firm Micro-Fresh International. Having little or no money in the early days of a business “is tough, and every day is a struggle.”
Farooq Mohammed, CEO of es-p Group, a professional services consultancy, agreed cash flow was a challenge for smaller suppliers and delays to payment could disrupt business. For example a delayed payment could have been intended for staff salaries or to buy supplies.
Entrepreneurs need buyers’ feedback
Sid Narang, CEO and founder of thesqua.re, said that communication and feedback are key to the long-term prosperity of suppliers in order to build their business by winning more contracts.
Worth the risk
Farida Gibbs, CEO of talent management consultancy Gibbs Hybrid said that big companies that consider diverse and small suppliers could get something extra that will pay off.
When Gibbs secured a contract with IBM, she worked hard to give more than her competitors. She made herself available after a lot of her competitors had logged off at five or six o’clock and IBM’s procurement team saw the value of her service.
In return, IBM made efforts to help her firm, she said, and the contract put it on the roadmap. “If we can do business with IBM, then we technically should be able to do business with everyone.”
But it starts with a partnership between the corporation and small business to support one another to ensure that services are able to be rendered at the highest of quality.