Vendor Selection

In an early stage startup, vendors are generally sellers who have been serving the company since its founding – keeping the relationship is sometimes to reward loyalty. However, as the business grows it is critical that the vendors be selected on meeting specific growing needs of the company. This could be the ability to scale, ability to customize products and services, ability to fund larger volumes, ability to provide quick turnarounds, etc. Loyalty is to be valued so business should try to nurture its loyal vendors.