Strategies for Managing Directors

Doing Business With Big Business Kim Radok August, 2013

You are a new generation business owner, times maybe a bit tough, or you are really ambitious. Then the offer by a major corporate business arrives with the words "We would like to buy your product."

You beauty you say, "Here is the opportunity I have been looking for!"

However, now is not the time to rush in to the deal. You need to take stock and think through the issues which apply when selling to a major corporate customer. Without doubt, if the offer is genuine and you have the right product and operational processes, you may make a lot of money.

Unfortunately for many small business proprietors, the story is not so rosy. Once they enter an arrangement with a major corporate customer, suppliers often find they are faced with limited options. These options are usually limited to:

(i) battle on and hope you make a dollar as an independent business;

(ii) battle on to find out effectively, you are just another department of the customer;

(ii) draw a line in the sand and stop supplying the major corporate and take the loss which hopefully not destroy your business;

(ii) wind up your business and hope you can pay off all debts to protect your credit rating.

Doing business with big business can be profitably. However you need make sure you have considered all the issues which apply when selling to the big corporate customer.

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