A new study from the Better Business Bureau shows that one in five consumers have been scammed by a vendor they purchased from online. In 2017, the BBB received over 2 million complaints about vendors and scams. Here are some tips for avoiding this costly mistake.
The procurement lessons learned examples is a blog post that talks about the mistakes that companies make when they don’t vet vendors.
Aron Susman, co-founder of The Square Foot, provides vendor screening tips.
We Google everything these days. A search engine has the answers to anything from supper recipes to unusual medical issues.
Aron Susman and two of his high school classmates wanted to hone this ability for a specific purpose. They intended to develop a site that worked like a search engine and allowed small companies to locate retail, industrial, and office space in particular locations.
“If you want office space, you contact a realtor and receive a list of properties, and then you go out and look at them,” Susman explains. “We wanted to make it easier for small companies to locate office space,” says the company.
The New York-based trio had a great idea and a well-written business plan, but they needed someone to build The Square Foot, their website. They began searching for website programmers and eventually chose a firm that they liked.
He adds, “With this business, we started the ball moving.” “We hired them to design some site designs, but once we got to the implementation phase, they slowed down.”
Susman was informed by the website firm that they didn’t have time to build the website after numerous reasons.
“We had to start from scratch. We had to locate a new firm to design plans and construct the site from scratch,” he adds. “It was a five-figure blunder, but the worst part was that it put us three months behind schedule.”
While the business did not go bankrupt as a result of this error, Susman believes it was an expensive lesson in properly screening suppliers that might have been avoided. Here are some of the things he took away from the experience:
Don’t only rely on the references you’ve been provided.
According to Susman, if you ask a business for references, they will offer you a list of individuals who will give you great recommendations, therefore it’s better to conduct your own research.
“Find the vendor you’re interested in working with on social media and reach out to individuals there,” he advises. “A excellent place to start is LinkedIn. Because it’s a more professional site, you’ll be more likely to meet business colleagues than friends.”
Susman says it’s something he wishes he’d done before he started working for the internet firm. Susman began searching around on social media after having an issue with the business and discovered that he wasn’t the only one who had concerns.
“It might have all been averted if we had done our homework up front,” he adds. “It takes a little time, but it’s well worth it.”
Improve your ability to go ahead.
Mistakes in business may be quite expensive, particularly for startups. Susman thought the error was deadly at the time.
“As a young company, even the tiniest glitches may seem to be major issues,” he adds. “In retrospect, the issue wasn’t fatal. It was a setback, but not a fatal one. If you don’t learn to move forward from errors like these, your company will stagnate.”
If at all possible, avoid outsourcing.
Rather of relying on suppliers, The Square Foot now strives to accomplish as much as possible in-house. They’re hesitant to outsource tasks after a bad experience with one provider.
“Do it in-house if you can,” Susman advises. “I understand you can’t do everything in-house, but by doing as much as you can in-house, you’ll not only avoid possible relationship issues with freelancers or suppliers, but you’ll also save money. That’s a huge thing for a startup.”
Real estate lessons pdf is a document that was created to help others avoid the same mistakes. Reference: real estate lessons pdf.
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