Perfecting Your Procurement on a Budget
Any small business owner knows the stress of trying to keep all your fingers in the pies when it comes to work. However, business procurement Manchester knows that it can get stressful trying to keep on top of everything, especially your finances.
A result of this stress means that procurement can be placed to the side and viewed as a lower priority over other issues. The truth is though, this is a big mistake many small businesses make, especially as many small to medium business spend around 50 percent of their sales revenue on procurement of various services and materials.
Because of this, business procurement Manchester are giving you four ways on how to keep your procurement budget friendly.
Stick to the Rule of Three
For the best financial management, always stick to the rule of three. When you need a quote for any service or product – from stationary to new flooring – always get three quotes for the job.
It means that you can help evaluate the fairer price for the job and also means that you can double check the average price for the job that you’ve been quoted for. Sometimes we might have doubts on whether the prices given are the correct or average pricing, so getting a second opinion is the best option for keeping finances low.
Haggling is a serious issue us brits struggle with – we are more likely to settle for the price originally given to us than trying to sway the price in your favour. The fact of the matter is that a start-up company or a newer business with have a tight cash flow, so pushing for that lower price is an important step in the procurement process.
Business procurement Manchester know that suppliers are working for the profit, so asking for a lower price won’t deter them from the sale. Either way, they want to make money and you want a cheaper product, so they should see it as a win-win scenario.
Keep Your Suppliers Close
Building relationships with your suppliers is an imperative step to your procurement process, especially for start-ups. For starters, you have the advantage of being far more flexible than a larger company. One way of building a good rapport with your supplier is paying them within 30 days – the sooner you pay them, the happier they will be!
As well as building these important relationships with your suppliers, business transformation Manchester suggests to always have a back-up supplier. Working exclusively with one supplier could case supply and demand issues down the road, so always have a back-up option in case of unfortunate situations.
Outsource Your Procurement
Running your own start-up business can be a hectic and even stressful ordeal. Completing a successful procurement initiative, an entrepreneur would do well to consider outsourcing the work to specialists, saving the company money and other savings.
On the other hand, trying to organise with a buying consortium won’t go to plan If you haven’t considered the company’s own requirements. Knowing your budget and your requirements is an important step to consider greatly before working with an outsourced specialist.
Contact Tailor Train Today for Business Procurement Manchester Solutions
Now you know the basics on how to keep your procurement stuck to a budget, it’s time to consider if outsourcing a specialist is the best road to take for you and your company. At Tailor Train, we offer a quality procurement service to help your company manage their finances appropriately in order to flourish. Call us at 07795 387 519 for more details.