At some point in business, you’re likely to rely on others. Whether it’s service providers, business partners, or a temporary partnership, the connections that you make can make or break your brand.
It’s important to seriously consider the vendors, suppliers, service providers, and partners you work with. Sometimes, it can go wrong, and this can have major repercussions on your business’s success. It can affect brand reputation, it can affect your team, and it can even get you in some hot water.
Here are the consequences of some bad deals and why it always pays to know who you’re working with.
Outsourcing is becoming a common way to fill skills gaps temporarily. It can also be helpful to your business when you need specialized work done. However, relying too heavily on outsourced services can also have negative effects. While some use freelancers or contract workers to eliminate the issues that can be caused by staff turnover; this method doesn’t always equal lower costs or better quality. Keep in mind that outsourcing to fill a skills gap can lead to dependency. Be sure that the tasks you outsource can be done also be done in-house.
Did you know that you could be legally liable for the businesses and people that work with you? Yes, even if you’re not the one responsible for any wrongdoing. This is especially true in financial services and contracts. Always hire professionals to help you with legal documents, binding contracts, and due diligence in mergers and acquisitions.
Be careful who you work with not only because of the impact it can have on your business but also how it can impact the way that your business is perceived. For example, if a business you’re considering partnering with has been in legal trouble in the past or has gone through some public scandal, you could end up alienating some of your own customers. Although there are firms that provide reputation management to business owners, this isn’t a service that you’ll even want to need.