Effective Purchasing for Small Businesses

Purchasing Image

Part 1 of 5

Why Purchasing Matters

When it comes to strategy, small business owners are normally intensely focused on customers: keeping current customers and winning new ones. A customer-focused strategy makes sense. After all, it’s customers that fuel growth and grow revenue.

In their focus on customers, however, many small businesses fail to see how strategically managing their purchasing is just as important to the bottom line. For most businesses, purchasing of goods and services represents up to 50% of total expenses. A systematic approach to purchasing can typically save 5% to 30%. These savings directly increase profit or free up cash to spend on growth initiatives.

Purchasing can also help with acquiring new customers. Keeping costs down allows you to be more competitive in selling—particularly when your customers are comparing bids from multiple vendors. When you spend the time to develop a positive relationship with your suppliers, they are much more likely to refer you when their other customers need the products or services that you supply.

Also, effective purchasing is not always about price. Sometimes timing of delivery, quality, service, or support is just as or more important than cost. A good purchasing process is really about finding the best overall deal for the products you need.

While small businesses can’t afford the time or cost required to manage a purchasing staff typical of a larger business, they can benefit from adopting purchasing best practices. In a series of blog posts, we will highlight how you can adopt best-practices in purchasing and how we are designing Buyful to revolutionize your purchasing process and make it simple, effective, and efficient.

We’ll cover:

  • Starting the Process: Specifications and Supplier Selection
  • Conducting a Bid
  • After a Purchase
  • The Buyful Revolution

3 Responses to Effective Purchasing for Small Businesses

  1. Pingback: Effective Purchasing for Small Business, Part 2 of 5 « Buyful Blog

  2. Pingback: Effective Purchasing For Small Businesses, Part 3 of 5 « Buyful Blog

  3. Pingback: Effective Purchasing For Small Businesses, Part 4 of 5 « Buyful Blog

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