Don’t Let Them Cheat You: Getting the Most from Suppliers

Many businesses work with their suppliers but don’t realize that they aren’t getting the most from them. Finding valuable and reliable suppliers is necessary for a successful business. In order for this to happen, there are necessary steps you must take.

Build Relationships with Suppliers  

You need to figure out exactly what you want from your suppliers. After you have done this, it will be easier to create a relationship with them. With a good relationship comes certain perks, like better payment terms or discounts. It would be good to go and see the business first hand. Figure out how they operate so you know exactly how to negotiate.

Service Level Agreements with Suppliers

Make sure that you check on your suppliers so that there aren’t any problems. It is worth it to get your contract checked by a professional adviser.

You should also include a Service Level Agreement (SLA) in the contract.  Use it to define benchmarks for most of the responsibilities in your relationship. Don’t forget about confidentiality!

SLA is supposed to be a guideline to make sure everything runs smoothly. It creates the criteria that the suppliers are expected to follow. If they fail then most SLAs provide compensation.

Review your Supplier’s Performance

It is always good to constantly review how your suppliers are doing. Most businesses feel that a monthly check is adequate.

You need to determine whether or not you are satisfied with their work, and if their work is worth whatever price you are paying. Everything is done to benefit your business so make sure that they are doing what you are comfortable with. Look into what your supplier’s competitors are doing, so that you can see that you are getting the best deal.

Even in a long term business relationship, you need to continue to check on both your supplier and their competitors. Everything constantly changes and after a certain amount of time your supplier may not be as top notch as you remember.

If you think that your suppliers aren’t living up to your SLA then demand changes. If they refuse then it may be time to rethink who you are doing business with.

For More Information skedaddle over to the full article: http://www.icaew.com/en/archive/library/subject-gateways/business-management/supply-chain-management/purchasing/small-business-update/how-to-get-the-most-from-your-suppliers

Factoring Receivables

An important part of running a business is understanding how to factor receivables. In order for you to be successful, you have to know what to avoid and certain tips.

Avoid  

1.       Long term contracts – you don’t want to get trapped in a long term contract because as a business, you may end up in the wrong business contract. It’s better to keep your options open while still trying to figure out what direction your business is going

2.       Hidden rates – You should be careful, not to get caught up in introductory rates that come with hidden fees. You should never spend more money than necessary or expected. Many low rates have monthly minimums or inactivity rates, so make sure you research and find what works best for you.

3.       Deception – Keep a copy of your contract and any addendums in a secure place so that if an issue or dispute comes up, you have a reference to go back to.

Remember

1.       Keep track of when customer checks are being applied to your invoices, so that you know when to expect payments.

2.       Get a factor that offer 24/7 secure online reporting. Be sure to look at these at least once a week. You need to make sure that everything is in order and makes sense.

3.       Watch your aging receivables carefully because the faster your collections come in and get posted, the lower your invoice factoring fees will be over time

Many businesses are pulled into the deception that comes with factoring receivables. Don’t let yourself be led astray and stick to a set budget and plan. If you have a goal in mind then it will be easier to choose a contract beneficial to you and avoid scams.

This is your business. Don’t let someone ruin it for you.

For complete words of wisdom take a peek at the full article: http://www.mpstarfinancial.com/tips-for-factoring-receivables/

Lower Your Business’s Energy Costs

Nowadays one of the most expensive costs for small businesses is energy. Of course any business would like to cut spending as much as possible. In order for this to be possible, one would have to make couple changes to the business but what changes should you make. That’s what we are here for.

Here are a few tips to lowering small business energy costs

1.       Turn off computers at night. Leaving a computer on overnight can be costly. Ensure that at night it is completely shut down.

2.       DIY insulation. Improving a building’s insulation and air leaks is a good way to prevent a waste of energy. This will help you make the most of what you are currently paying.

3.       Fees. Whenever employees want to charge their phone or something electronic that is non works related then charge a fee. This will deter employees from using energy unnecessarily.

4.       Work From Home. If the office isn’t in use then of course you will save energy. Encourage people to work from home once a week. Better yet, set a day for everyone to work from home so that the office can be shut down.

5.       Make it a Competition. You could make saving energy a competition between employees. You could get a cheap energy monitor and give the person who saved the most a prize. It would be beneficial to buy an energy monitor anyway so that you can monitor your energy use better.

6.       Clean light fixtures regularly. Cleaning lights and such increases light output
7.       Turn the thermostat down. Reducing your thermostat by just a little could save you more than 10%.

 

For more information see the full article at: http://www.flyingsolo.com.au/marketing/business-marketing/spending-too-much-on-small-business-marketing