Appointing external service providers is a core milestone for any growing business. Irrespective of what services your business needs, appointing the wrong supplier can be costly.
In this piece, four founders in Civitas’ community share their insights on how scale-ups can evaluate potential suppliers, identify red flags early, and build sustainable partnerships.
Define your internal baseline
The process of appointing a supplier begins internally. Before issuing a brief or setting up meetings, a business owner must clearly understand what their problem is, and what they need to solve it.
James Moffatt, CEO and co-founder of communications agency Promise Group stresses the importance of clarity right at the start. "[Before engaging a communications agency, for example] the product owner should clearly define the opportunity for their product, who they need to target, and what the business plan is," says Moffat. Without this foundation, external teams cannot align with your broader direction.
James Moffatt, CEO and co-founder of communications agency Promise Group .
Chantelle Bowyer, founder and CEO of global marketing agency Metis Performance Marketing says, "You need to understand where you are as a business and where you want to go. If you’re engaging marketing or communications service providers, groundwork like your business strategy, brand foundations, and key financial numbers must be in place first."
Chantelle Bowyer, founder and CEO of global marketing agency Metis Performance Marketing.
Understand the financial trade-offs of outsourcing. "If it’s going to take ten hours of time to solve your problem, could those ten hours be better placed elsewhere in your business?" asks Brett Perlstein, founder and CEO of search marketing and CRM agency SearchKings Africa. "If yes, outsourcing is not a bad idea.
Brett Perlstein, founder and CEO of search marketing and CRM agency SearchKings Africa.
“Another key element is making sure you can articulate what success looks like with clear, measurable metrics," he states.
Trusted networks and small trials
Once the internal scope is clear, founders need to build a shortlist. While formal tender processes exist, direct recommendations frequently produce better results.
Says Kurt Schröder, founder and MD of brand and communications agency DoubleShift, "If you face a specific challenge, reach out to your network first. Find businesses and brands you appreciate, ask who they use, and get a warm introduction. That gives you an honest, validated view of the actual working experience."
Kurt Schröder, founder and MD of brand and communications agency DoubleShift.
When evaluating shortlisted candidates, pitch presentations often don’t show how a supplier operates day to day.
Says Schröder, "Consider a paid audition; a paid project or a discovery workshop. Suppliers invest far more effort when compensated for their time, and it shows you how they actually solve problems."
Moffatt also highlights the value of face-to-face evaluation. "Build your shortlist and then hold a chemistry session with top candidates at their office," Moffatt notes. "Treat it like a date before moving forward with a first brief, and always speak to personal client references."
Look for authentic trust signals
During early interactions, specific green flags can help indicate whether a supplier views the relationship as a transactional sale or a long-term partnership.
"Look for the ability to articulate exactly how they get you to your desired outcome," Perlstein says. "A strong track record with similar clients in your vertical shows they possess the depth required to deliver."
Moffatt says client tenure is another good indicator. "Relationships exceeding five, seven, or ten years say a lot about an agency," he notes. "[Services] businesses that only have short-term client relationships should raise concerns."
For Bowyer, a key trust signal is a company's willingness to ask deep questions rather than pushing standard packages. "A strong supplier asks really good questions to understand your specific business instead of forcing you into their standard box," she states.
Common red flags and silver bullets
Recognising warning signs early prevents expensive mistakes. One frequent issue is the disconnect between the people pitching for the business and the team executing the work.
"Bringing the A-team to the sales pitch and passing the work off to the B-team is a massive red flag," warns Schröder. "You should also walk away if a proposal relies on generalisations without detailing exact scope and who delivers it."
"Make sure you know who is actually doing the work and meet them before signing," Bowyer concurs. "Another red flag is any supplier offering to do deep strategic thinking or audits for free. Professionals who value their expertise generally do not give it away."
Communication lapses during the sales process also signal future operational problems. Perlstein warns against accepting vague promises or poor follow-up. "If a supplier promises quick turnaround times during the pitch but fails to communicate basic updates, that is how they will show up post-engagement," he comments. "And if an offer seems too good to be true or promises instant results, it usually is."
Treat your supplier as a strategic partner
Successful supplier engagements rely on ongoing collaboration rather than passive delegation.
Schröder emphasises that professional services require continuous effort from both sides. "Don't expect a silver bullet," he says. "Professional services are people-heavy. The engagement requires investment and energy from both parties."
By establishing clear metrics upfront, leveraging trusted networks, insisting on clear scopes, and treating the relationship as an active partnership, business owners are better placed to appoint suppliers that drive sustainable growth.
And if you do get it wrong? “Learn from that and make sure you don’t make the same mistakes next time,” concludes Perlstein.
