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Develop relationships with potential suppliers and equipment vendors.
Now that you have begun to develop a network, through your associations,
your mentor and your accountant, it is time to see what credit and
discount relationships you can build among prospective suppliers and
vendors.
If your business requires
frequent or extensive use of equipment, introduce yourself to
prospective equipment vendors you meet in your network (you can go
to the Yellow Pages, too, but some common bond like membership in
an association will speed development of the relationships). Many
equipment vendors are open to financing what they sell. You may
establish a lease relationship that at some point allows you to
purchase the equipment. Explore options, develop an Excel
spreadsheet of various vendors’ offers and review them with your
accountant and mentor.
Materials suppliers may be willing to
extend credit based on your financials. Typically these vary from 30 to
90 days. They are taking a risk on you – and they too often get burned –
so patiently develop your relationships with these suppliers and build
the trust they require.
Once again, your fellow association
members will provide valuable introductions and whispered hints on who
is most reliable and easy to deal with. Also, if you have been working
in the industry for several years, you have undoubtedly built personal
relationships with the people who work for vendors and suppliers. Build
on these personal relationships in establishing your business
relationships.
These start-up
commitments with vendors and suppliers will help you more accurately
estimate costs when you start to bid projects, and they can go a long
way in setting up future bonding relationships.
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