Pro-cure-ment. The acquisition of goods and/or services at the best possible cost, in the right quantity and quality, at the right time, in the right place, and from the right source.
Susan is the financial decision maker for a start-up company that needs funding. While meeting with a potential investor, Susan is asked to describe her firm’s procurement strategy. Following a brief pause, Susan furrows her brow, bites her lower lip, clears her throat and replies the only way she knows how. “Huh?” The investor shakes his head and points Susan toward the nearest employment office.
Steve is the head honcho for a start-up company that needs capital. In a conversation with a prospective investor, Steve is asked to describe his firm’s procurement strategy. Steve nods his head a few times, smiles knowingly and replies, “I always get three bids and then choose the lowest one.” The investor returns the smile but says, “Sorry, not good enough.”
Sarah is the chief financial officer for a start-up company that requires financial backing. During a luncheon with a potential investor, Sarah is asked to describe her firm’s procurement strategy. Sarah looks directly into the investor’s eyes and replies confidently, “Sourcing Factory.” The investor responds, “I believe we can do business together.”
It’s natural for start-up company officials such as yourself to feel overwhelmed at everything that’s going on as you try to build your business from the ground up. You believe strongly in the goods and/or services your new company can deliver, but you need financial help to get to the next level. That monetary assistance will be much easier to obtain if you can convince investors that you will use their money the right way.
Investors who make their living by correctly assessing – more often than not – which start-up companies will be profitable and which ones will fail did not arrive at their current positions by fronting money to people such as Susan, who is clueless regarding how her company would get the most bang for its buck when it comes time to making purchases.
Those same investors are also uninterested in providing cash to people such as Steve, who is smart enough to gain a few bids from suppliers yet not savvy enough to make those suppliers bid for his business.
But when investors see that small business owners such as Sarah utilize the easy-to-use Sourcing Factory supplier bidding system to create competition between those sellers, they are much more confident that those companies will spend their money prudently.
How do small business owners such as you set themselves up for success? By demonstrating to investors that you will use their money wisely. Investors will feel more comfortable supplying you with funds if they know you will use them to the best of your ability. With a procurement strategy such as what Sourcing Factory offers, your company will be more efficient as your purchases are made in a more cost-effective manner. Investors’ money will go much further, which is good for both of you.
Starting today, Sourcing Factory can be your procurement strategy. In fact, it could be the only two words you need to say when asked how you will spend investors’ money. Please take a look at the short video on the Home Page of www.sourcingfactory.com, as well as the Tutorial, to learn how to make your start-up company more attractive to investors by making suppliers bid for your business.
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