Make Corporate America Work for You

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Just like hiring a key employee, finding the right vendor is more art than science. There's no single approach, but a good start is to compose a list of questions that represent your company's "critical criteria," and simply make your way down that list. How long will it take to receive replacement parts? Under what conditions will the vendor increase your line of credit? A quick Internet search or trip to the library can reveal loads. A news story about how your vendor plans to revamp its small-business marketing strategy, for example, would be helpful to know about in advance of your interview. Cain, of MyBenefitsSource Inc., advises entrepreneurs to study a potential vendor's mission statement. "It's very simple," Cain says. "Are they in business to serve customers? Or are they in business to provide service at a price?" In nearly all cases, it makes more sense to opt for the latter. "You want people who will lose sleep over your problems," says Cain.

It may seem easier to conduct some of these discussions over the phone. On the other hand, would you select, say, a new manager on the basis of a few phone calls? Didn't think so. That's why smart entrepreneurs insist on as much face time as possible. If you can't meet with a CEO or other key decision maker, get lots of face-to-face with field sales reps or the reseller who will be servicing your account. After all, in any relationship attitude is everything. Will you be an important customer, or are you simply another small-company account? Who does the vendor send to the meeting? Can you get access to key executives, or are you constantly dealing with junior-level staff? Do they send the same person to each meeting or a different rep each time? That might foreshadow less-than-par service to come or signal problems with turnover.

Nancy Connolly, president and CEO of Lasertone Corp., a 70-employee toner manufacturer in Littleton, Mass., takes the commitment to face time one step further. Before she'll sign a contract with a vendor, she insists upon regular site visits to the supplier's offices. "There has to be a personal meeting between me and the president of the company," Connolly says. "It's got to start at the top, and I've got to have a commitment from them." For example, when she recently interviewed a large new supplier, Connolly demanded a site tour, during which she met not only with the company's president but also with the purchasing manager and other key executives. "If they're not willing to have you there, openly asking questions, what do you think is going to happen down the road?" The question, of course, is rhetorical.

Trust Your First Impressions

Forget everything your mother told you. When negotiating a contract with a potential vendor, you often can -- indeed, should -- judge a book by its cover. After all, everyone is on best behavior at the beginning of a business relationship. So assume that the way your vendor handles you at the start is the best treatment you're ever going to get. Likewise, any badly handled or ignored request at this point should send up a red flag. "If you're in the initial stages, and if you're getting no attention, that problem will continue when the stakes are higher," says Gourmet Garage's Arons. Some early warning signs: no or slow return calls, form letters, any kind of rudeness or impatience. Arons recalls dealing with one very large vendor that gave him the bad vibe immediately. "You try to do any business with them, and they treat you like you're nothing," he complains. "We haven't been able to secure credit with them, and we have credit with 400 vendors. They won't answer our phone calls, I've e-mailed the president of the company and gotten nothing...the whole place has a discombobulated feel to it."

Don't Be Patronized

One of the biggest annoyances business owners encounter is what might be called the "condescending parent syndrome." For all the millions of dollars that Corporate America spends studying the small and medium-size business market (and make no mistake: They spend plenty), the one point that seems to stand out is the most obvious: You're smaller than they are. "Typically, a smaller company doesn't have a support staff. It's the owner that's making decisions, so they're looking for a trusted adviser," says Gary Foner, senior vice president of SMB at SAP America in Newtown Square, Pa. "These companies don't have 16 vice presidents to deal with everything," adds Gerry Golub, senior managing director at American Express Tax and Business Services in New York City.

Sure, but it's what many large companies do with those insights that leads to problems. To some, a smaller work force implies a lack of sophistication and a need for handholding -- which can prove mighty irritating, particularly to sophisticated entrepreneurs who are willing to invest a little time in, say, choosing the right mission-critical software, or who have a skilled technologist or financial pro on staff.

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