Most big decisions in life are best suited for some level of consultation. Decisions like: Which college is the best fit for me? Can I really afford to buy this house? Should we have a kid? All should be decided on with more than just you in the room. The same rings true for running a business. You may have the world’s greatest idea and business plan, but if you’re going to execute, you’re going to need some help. And if you want to make it big, you’re going to need a lot of help.
Take supplier selection in product production, for example. If your approach is more singular than collaborative or if you’re lacking resources to call on, how do you know you’re setting your table for success? Did you choose your suppliers because they were the most persistent? Were they already in place? Was it a proximity attraction or were they just the best that came into your purview? These mindsets might keep you afloat in the short-term, but none will be the most effective strategy for the long haul.
And when you think location, how do you know if you're even sourcing from the right country? If you’ve chosen to produce a particular part internationally to lower costs, what tradeoffs are you making in lead time, quality assurance and influence to receive those savings? Could demand for your product increase if your customers knew it was produced back home? The solitary decisions you’re making might be preventing your revenues from taking off.
Growing your business means thinking big. But how do you do this if you're just a mom-and-pop shop or a small company? How do you get the synergistic help you need, your questions answered with confidence, all while operating like a big business with all the economies of scale bells and whistles if you simply don’t have the means to do so in house? Well, one effective route to take is joining a Group Purchasing Organization (GPO). Buying Groups, offer a network of peers to consult with as a significant resource, as well as vetted supplier options in a variety of categories. GPOs create the competition in supply base businesses sorely need to ensure they are getting the best deal and product for their money. Simply put, they allow you to not have to do this all alone.
So no matter the size of your business, you possess the ability to think and act like one of the big boys. It all comes down to how you choose your suppliers and who you join forces with.
And for an example of a buying group, see Prime Advantage.