Jun 26 2006

Big Opportunity And Great Risk In The Small Firm Handling The Big Contract

Big Opportunity And Great Risk In The Small Firm Handling The Big Contract

One of the most exciting things to happen to a small business is to get the big contract from the big company. There are a lot reasons to be excited – reliable and steady orders, a big boost to your cash flow, a great credit customer, and bankable receivables.

Unfortunately, there are a number of risks that come with the big contract. Risks you need to be aware of and prepare for – large companies move slowly, purchases are cyclical, a big dollar volume to the small business is small to the large one, and demanded volume and delivery times can be unrealistic.

StartupJournal has a great article on this topic and offers some sage advice on how to prepare for the big win. Here's one of my favorite pieces of advice…establish a stream of small pieces of business before going after the big pay day. "You need to have a lot in the pipeline. You need to make sure that every 60 to 90 days, something is being paid.

The bottom-line is you shouldn't fear going after the big deals, you just need to be careful in how you service them.


1 Comment

Other Links to this Post

RSS feed for comments on this post. TrackBack URI

Leave a comment