How to make the most of June: Do suppliers add value?

June is the ideal time to assess just how much value suppliers have added to our business. There is nothing like looking at the bottom line of these expenses for the year to help us decide if our business is better off.

Rather than spend the last month of the financial year up to my armpits in targets, spreadsheets and tax figures, I prefer to leave most number crunching to professionals.

But there is one thing as a business owners I can do with the end of year figures that no one else can do for me: I can assess what value was added to our business by the suppliers and partners engaged throughout the year to do exactly that - add value to my business.

Examples of such suppliers in a typical solo business include IT service providers, bookkeepers, accountants, virtual assistants and coaches.

If I paid $9, 412 for IT support, am I $9, 413 better off? Or has that been an investment in future productivity or efficiency? If the answer is no, and only the soloist signing the cheques can decide for sure, then what changes can be immediately put in place?

I have really made some mistakes in this area. I choose my clients carefully, only agreeing to work with those with whom I am philosophically aligned. I consider this one of the great privileges of flying solo.

But I think I have allowed myself to be at the mercy of the businesses of which I am a client. And I am going to make it a priority to do it differently next financial year.

My 2007 approach was what I called the ‘80 per cent relationship’ which is best described by working together ‘in the spirit’, an expression I overuse reflecting my intention that business can be collaborative and nice. It meant that if 80 per cent of the working relationship was effective, don’t sweat the small stuff and be grateful for what is good.

My 2008 approach will be radically different. I intend to surround myself with businesses whose idea of working ‘in the spirit’ involves them saying ‘sure, we can do that’ (and meaning it) and then being able to do it or saying ‘no that’s not the way to go, here’s what we recommend.’

They will probably also say ‘do you know that if we do X for you, that will save you money/make you money/be cheaper or better in the long run/that there is a new way of doing that since you first set that up and we can help you with the transition. Here is how implementing it will help your business...’

I think I can come to very quickly consider that to be just as collaborative and nice.

The thing most likely to make me giddy with delight is to have someone say ‘I don’t know but I’ll find out and get back to you.’ And then finding out and getting back to me. How much time is wasted by people thinking they always need to have an answer and responding with something whether or not it is true or defendable?

Forget the 80 per cent relationship, I want 100 per cent relationships with people who have expertise I don’t have, want or need and who are absolutely dedicated to being the best at what they do so they can help me to be the best that I can be at what I do.

In 2008, I am going to choose partners and suppliers like I choose clients and June is a great time to start the process of reviewing what is already in place and making plans to find like-minded business people to help me thrive next year and beyond.

Surely another privilege of flying solo.

Karen Morath of M Power consults, trains, speaks and coaches in public relations, personal effectiveness, life balance and all things empowering.

4 comments | Add your own

Hi Karen - spot on! When I was coaching general businesses, one of the key things I used to advise was to rank suppliers by ABCD the same way as ranking customers - why shouldn't our money be good enough for them? I already practice what you are preaching and have a great relationship with my preferred suppliers! Grant Hyman from Sydney | Read my articles
Thanks Grant. It was certainly how I used to work when I first started in business but in putting all of my energy into focussing on my clients, I lost sight of making sure my business was valued by those who support it. But not anymore..... Karen Morath from Melbourne | Read my articles
If only this could be true .I am sorry but the perfect world scenerio does not exist .Whilst you may be at peace with your decision not to deal with like minded people ,different difficult people are those that make us better for the often unpleasant experience . Paul from Melbourne
Hi Paul
Difficult people drag you down, not boost you up. I'm over it but if paying people to treat you badly works for you, that's for you to deal with. I'm sticking with my utopian ideal and I'll report back during the year and let you know how it's working for me. So far, I'm loving it! Karen Morath from Melbourne | Read my articles

4 comments | Add your own

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