Business Information for Entrepreneurs by an Entrepreneur

How to Choose a Vendor for Your Small Business

If you're a small business owner, you have probably had to choose at least one vendor. Some make the mistake of selecting the first vendor that they talk to while others always go for the lowest price.

There are other factors to consider, however, and choosing the best vendors can prove to be vital to the overall health and growth of your business.

Here are some things to consider.

Ease of Contact

If you can't get the vendor to call you back even before the sale is closed, forget reaching them once you've signed on the dotted line.

Instead, find a vendor that has time for you and that clearly is going to value your business.

Remember, a good price means nothing if you can't get in touch with someone when you need them.

Price

While price shouldn't necessarily be the most important consideration, it certainly is a factor in your decision. If the price seems too good to be true, it probably is.

A vendor who is bidding way above or way below the average should raise a red flag.

That doesn't mean there may not be a good reason for the difference in pricing, but you should definitely get an explanation.

Experience

Working with a new company can be a great way to save some money. Sometimes, however, you need to work with someone who has experience.

For example, a start up printer may work out fine, but you'll probably want someone with experience when it comes to marketing and advertising.

References

Check the Better Business Bureau, professional organizations and personal references before deciding on a vendor.

If the vendor has had problems in the past, you'll be able to save yourself a lot of trouble by learning from other's mistakes.

Choosing a vendor is as important as any other decisions you'll make - so choose wisely.

Easy Ways to Trim Your Small Business Budget

There are many challenges involved in running a small business. One of those is finding ways to meet the financial needs of your business before the revenue stream has been fully established.

While some expenses are absolutely necessary, there are areas in which you can trim your budget without hurting the growth of your small business.

Here are a few tips for painless budget cuts.

Office Supplies

This is one area in which many small businesses overspend.

Obviously, some supplies are needed to run the office, but do you really need the most expensive pens and the name brand supplies?

Depending on the size of your office, you can save hundreds of dollars a month by choosing the store brand or the less expensive pens.

Also, stress to your employees the importance of only using the company office supplies for company business. Pilfering office supplies is a common - and costly - problem.

Business Meals

If you are barely able to make ends meet, then this is one expense that you should stop immediately.

Unless it is to entertain clients, put business lunches and dinners on hold until the revenue picks up.

Employees would much rather lose the occasional expensed lunch than be laid off from their jobs.

Office Furnishings

This is a biggie. You can save thousands of dollars by choosing used office furniture rather than buying new.

Check online sites, such as Craigslist, or your local yellow pages for used office furniture suppliers.

Printing

If you can do some of your printing in-house without sacrificing quality, then you should.

For projects that you can't do yourself, such as those requiring offset printing, be sure to shop around. Printing prices vary widely between vendors, so be sure to get quotes from at least four vendors before making a decision.

Those are just a few ways you can trim your business budget. As your business grows, you can make different decisions. For now, however, be smart with your money so your business can flourish.

Customer Retention Tips

One of the first principles learned in business school is that it is much less expensive to keep an existing customer than it is to win a new one.

Still, many businesses are sorely lacking when it comes to customer service, and this shows as customer loyalty seems to be at an all-time low.

Call many businesses and you'll be greeted by a recorded message. If you press the button for new sales, you're likely to be speaking to a live person almost instantly.

Handle With Care

If, however, you press the button for customer service you're likely to be on hold for several minutes. This is a mistake many businesses make, and it's a costly one.

Your existing customers should be treated with even more care than those who are not yet your clients.

Of course it's important to win new customers, but it's equally important to keep the existing ones happy.

Keep Mistakes in Check

While some customers are going to make unreasonable requests, most just want to be treated fairly. If a customer has a complaint, it's important to address it and work to correct it as soon as possible.

Even in situations where a mistake cannot be fixed, just acknowledging the error and showing how sorry you are can go a long way in keeping a customer.

It's important to instill the value of exceptional customer service to every employee. You must demand nothing less than the best treatment of every customer by every employee.

It's a good idea to make sure that your email address and/or phone number is available to customers. Let them know that they can contact you directly if their issues are not resolved to their satisfaction.

Sometimes there is a cost involved in keeping a customer happy - but that cost is worth it if it keeps your customers loyal.