Insulating Your Small Retail Business From a Big Supplier

What is it with some big businesses? Do they wait forbusinesses needed and then demanded payment
a small retail business to stumble before they sink theinstead of allowing a credit for stock returned early.
boot in? It seems that way if events I witnessedOne day the ants who populate small businesses will
recently are anything to go by.band together long enough to teach a big business or
I have spent several hours on the phone with twotwo a lesson about relationships, respect and service.
small retail business owners trying to help them getI hope that I am around to see it.
stock for their businesses. They have been cut offWhat all this has to do with business is this - small
because their accounts are late being paid, not too late,business is the lifeblood of the country an my
only by seven days.company? If we let small business wither and die, our
In each case they have been making a concertedretail landscape will become one huge homogenised
effort to get the supplier accounts under control byshopping mall and how awful would that be?
making weekly payments. All calls from suppliers areTrouble is, small business can be its own worst enemy
returned. Their indebtedness today is nowhere near asby paying bills late, not organising business records for
bad as it was just three months ago. Yet the suppliersbetter business management, by not reading the
are cut them off - just when they were a few weekswarning signs. The result is that some small businesses
away from having all debts paid off.are disorganised and willing prey for large suppliers
Such unreasonable action by suppliers against tradingwho are happy to treat them harshly and, maybe, lose
partners of long standing is appalling. But I know itcustomers.
happens every day.The call to action to small business owners has to be
I'm not suggesting small business is given a free ride. Ito not let yourself get into this situation, to buy within
am advocating reasonable consideration by someoneyour means, pay your bills on time and to not rely on
who looks at the situation and considers theone or two large businesses to supply stock.
relationship - not a bean counter looking to make quotaBig suppliers can be very willing to help small
for the day.businesses to win retail real estate. This can be done
Each of these businesses is family owned andwith rebates or even an interest free loan. This
employs five or six other people. Without the stockimmediately weakens the small business. It is best for
which has been cut off these businesses will starve.the business that it remains independent and free of
Surely their suppliers know this. I should point out that Iany obligation to a big business supplier other than
could make a case that the suppliers, in these twocarrying their stock.
instances, created the cash flow problems byThe more self reliant and tightly managed a small
supplying more product in the first instance that thebusiness the longer it will survive.