How to Avoid Sinking Excess Capital into Your Vendor Relationships

Although a typical small business owner is very knowledgeable about the core industry they support, they must also interact with vendors/contractors who offer crucial services they need to run their business. Especially when it comes to technology, some small business owners feel a little out of their depth, leading them to make less than ideal decisions when procuring technology-related products and/or services.

Over time a small business owner might find themselves invested in things that simply are not providing the needed value, especially when compared to the amount of time and capital invested in them.

Follow the Money

In order to find effective solutions, one must first do some analysis to determine which technologies are actually draining a business owner’s time and financial resources. Initially, it may take some time to set up a plan to analyze each vendor but over time, patterns will likely emerge and it will come evident which vendors and/or products are worth the cost and effort, and which ones are actually draining corporate resources.

Consolidation

In some instances, analysis may show that at least some products and/or services are overlapping each other. If this should occur, then consolidating services and/or eliminating an overlapping vendor can help a small business use their technology dollars more efficiently.

Vendor Management Services

In some cases, a business owner may simply not have the time or feel they have the expertise to take on the task of managing all their technology vendors. This may happen after the vendor analysis or even at the beginning of the process. Some small business owners are so busy managing other aspects of their operation, they simply do not have any time to put toward even the first step of analysis. 

For those owners who lack the time or the expertise, an independent company that offers all the aspects of vendor management may be the answer. If you are a small business owner and need help in streamlining your technology vendors and/or services, WheelHouse IT can help!