Martin Stark worked was a procurement leader for 15 years. In this piece, he breaks down how small businesses can keep themselves in clients’ good books through choppy economic waters.
Does your business provide products or services to large corporations? Are you confident they will continue being your customers in this uncertain economic and business landscape?
Major businesses have a vast supply chain and network of vendors, including small business. Telstra, one of Australia’s biggest companies, works with over 5,500 small business suppliers, spending around $655 million annually with them. That’s almost $120,000 per supplier, per year.
I saw numerous downturns and periods of financial instability throughout my 15-year technology procurement leadership career. Small businesses were usually the easiest vendors to engage, the easiest to replace, and the easiest to stop buying from.
So, how do you secure your place in this volatile environment?
De-risk your business, communicate, and instill confidence
A smidgeon of business uneasiness or the hint a recession is on the horizon and a CFO will be looking at cutting costs. In times like these, decision-makers will be tightening belts and trying to mitigate risk as much as possible.
Unfortunately, small-businesses often represent a higher supplier risk, especially in chopping economic waters when they are more likely to fail. In 2024, 443,395 businesses were deregistered or wound down. This highlights a significant business churn – one that would set an executive’s internal alarm bells ringing.
It’s up to you as a small-business supplier to make your venture look less risky. Imagine an executive reviewing their supply base case considering which vendors might fail, who can they do without, and who can help. What would they think about your business?
Here are some steps you can take:
- Provide reassurance you can withstand economic headwinds, have a solid supply chain and are financially secure.
- Communicate by letting your customers know how your business is going, reaffirming your ability to deliver is unchanged, and offer help.
- Listen to your customers, empathise with their concerns, explore ways you can alleviate their concerns, collaborate and provide support.
The golden rule is to be proactive and strengthen the relationship. You can do this by being their lynchpin providing guidance and a steady hand. The customer will know you are in their corner.
Be the trusted advisor and activate your spheres of influence
Executives have considerable responsibilities, grappling with many complex challenges while managing demanding tasks. They rely on the sound strategic advice of people they trust the most; people who can solve problems and influence outcomes.
Being that person can help make you irreplicable to your clients.
Be the college of knowledge: You probably know the most about what is happening in the marketplace, the roadblocks ahead, and what companies are doing. Share this knowledge while delivering stacks of value with your strategic expertise and exceptional service.
Leverage and open your network: Make referrals and offer to connect your clients with useful contacts who can solve the specific problems they’re facing. Organise and hold regular events where your clients can meet peers, specialists and collaboration partners.
Enhance your digital credibility: Optimise your LinkedIn profile to showcase your expertise elevating your professional reputation. Increase your visibility and credibility by consistently sharing valuable content rich in wisdom and insights that prominently features in the LinkedIn newsfeed of executives and decision-makers.
Final Tip
Embed courage in your business:
- Thrive by making bold decisions while others are hindered by reluctance and apprehension.
- Harness AI capabilities to reduce repetitive tasks and administrative burdens.
- Focus the team’s and your efforts on higher-value, customer-centric work that technology can’t perform.
Most importantly, prioritise the human-to-human connection with your clients. Be the supplier your customers need the most!
