These days, as a business owner, you are going to have relationships with vendors. This can be a stressful situation to be in, especially when the vendor is taking care of areas that you have minimal knowledge of. Regardless of who you are going to have as your vendor, I have put some common missteps that you should avoid when considering the vendor relationship.
First, you are not just doing business with them; you are doing business with whom they do business with. If they have outside vendors they should have an agreement with them as well. Also, if this affects how they do business with you, you must be aware of that relationship and how it works. Additionally, how they do business will affect your business. If they are handling your data, they should be compliant with the things that your are compliant with.
Second, you are not there to be their friend. Yes it is good to have a amicable relationship with them, but the adage about doing business with friends holds true. If you are acting like they are your friend, “friendship” expectations are at play. (For example the friend discount, friend prioritization, lack of boundaries, etc.) Additionally, sometimes emotions will run high because of a difficult situation and then someone will start to take things personally. Suppose you are going to do business with friends or family. In that case, both parties must understand the risk and have an agreement about how the business relationship will be separate from the personal relationship.
Next, ask as many questions as you like. There is NO stupid question. If the vendor doesn’t know the answer or it isn’t to your liking, you need to ensure they get back to you to answer your question/concern. If they blow you off, they are not for you. If they ignore it, they are not for you. If the vendor can’t accommodate you and your needs, there is someone who will and will work on the relationship that is right for both of you.
Take as long as you need to, but respect the timeline (yours and the vendors’). If you know you take a long time to make a decision, start early with the vendors and let them know how you operate. Again, if they can’t accommodate that and want to rush you, then they are not right for you. If they tell you a timeline to get the work done and give you dependencies for that timeline, take that into account and respect it. Take into account your internal processes (holidays, red tape, key decision makers, etc.) and the dependencies noted by the vendor so that you don’t rush through the planning and implementation once you have purchased the service/product.
Finally, you aren’t just buying a product/service; you are buying the relationship that goes with it. If an implementation is involved, you need to understand how the transition between their teams works and the expectations. Sometimes, the relationships overlap, but generally, the vendor wants a clean hand-off in the different phases so that the other teams can continue their work for other clients. Once the product/service is in operations that is another type of relationship may have a different dynamic.
Be sure to do your part to make that transition smooth for the vendor and for your side. Be sure to determine the following for the vendor for your business:
- What are the phases and expectations for each phase?
- How does transition work between the phases?
- What is the escalation process in each phase?
Remember…
Communication is the spice of life. You must be clear about what you are looking for in a vendor and what you are not looking for. Each vendor relationship will be different, but they should all serve to further your business’s goals and vision.