Getting your startup procurement ready
Landing a corporate partnership is a major milestone for any startup. It can bring credibility, access to bigger markets and a boost in revenue.
But most corporates aren’t just looking for innovation. They’re looking for risk-free innovation. They want confidence that your startup can deliver, handle the workload, and meet their compliance standards without surprises.
So they have procurement processes. Long ones. With checklists, compliance checks, and more paperwork than you’d think possible.
It can feel overwhelming, especially if you’re a lean team focused on building, selling, and growing. But the earlier you get your business procurement ready, the smoother those deals will go.
Here’s what that takes to be procurement ready as a startup.
Financial health
Corporate partners want to know your business won’t collapse mid-contract. That's especially true if you’re going to be delivering services, handling sensitive data, or entering into multi-year agreements. That’s why financial health is the first thing they’ll check.
Even if you're early stage, you need to demonstrate you know how to manage your mone, stay afloat, and handle large-scale contracts
That means having:
Clear financial records – Consistent, well-kept books that show revenue, expenses, and trends
Audited financials (or reviewed management accounts) – If you’re too early for a full audit, work with your accountant to prepare clean reports
Positive cash flow (or a clear runway) – If you're pre-revenue, show how long you can operate with current funding, and when profitability is expected
Your goal is to make it easy for procurement teams to see that you’re a safe bet. Don't wait for a partner to request these. Proactively include them in your partner onboarding pack, it saves time and builds trust immediately.
Due diligence preparation
Due diligence is how corporates verify what you’re telling them. They want proof that your business is real, legal, protected, and capable.
If you’ve never gone through this before, it can feel invasive. But the more prepared you are, the easier, and faster, it becomes.
Here’s what most corporates will ask for:
1. Financial Statements: This includes income statements, balance sheets, and cash flow statements for the past several years.
2. Tax Returns: Provide corporate tax returns for the same period as the financial statements.
3. Incorporation Documents: Such as articles of incorporation, bylaws, and certificates of good standing.
4. Contracts and Agreements: Including customer contracts, supplier agreements, employee contracts, and any other legally binding agreements.
5. Intellectual Property Documents: Proof of ownership of patents, trademarks, copyrights, and any related agreements.
6. Litigation History: Disclose any ongoing or past legal disputes.
7. Business Plan: Provide a detailed business plan that outlines your company's strategies and projections.
8. Organisational Chart: Show the company's structure and key personnel.
9. Employee Contracts: Provide employment agreements, including non-compete and non-disclosure agreements.
10. Supplier and Vendor Contracts: Details of agreements with key suppliers and vendors.
11. Compliance Records: Any compliance records related to industry-specific regulations.
12. Financial Projections: Provide financial projections and forecasts for the future, as well as any assumptions used in creating them.
Be prepared to answer questions and give additional documents as requested during the due diligence process. E
Even if you're not yet ready for procurement, it's a good idea to set up a well-organised digital folder (e.g. on Google Drive, Dropbox, or a secure platform) that contains all your key business documents in one place
It shows you’re organised and reduces back-and-forth later on.
Exit strategy
You might not be thinking about the end yet, but corporates are. If they’re going to invest time and resources into your business, they want to know you’ve thought through where it’s going.
An exit strategy doesn’t mean you’re ready to sell tomorrow. It means:
- You’ve defined what long-term success looks like
- Your team and investors are aligned on outcomes
- You’re building in a direction that creates value for everyone
This could include:
- Acquisition by a strategic partner
- Going public (IPO)
- Remaining private but profitable
- Licensing IP or spinning out product lines
Being upfront about your direction makes it easier to attract the right corporate partners, ones who see themselves fitting into your journey.
Final thoughts
The way corporates make decisions is vastly different from startups. There’s more red tape, more stakeholders, and more risk aversion.
To land a deal, you need to understand how procurement teams think:
- They’re not just buying your product, they’re buying trust, compliance, and alignment with internal policies
- They want low risk, so if you can’t show a paper trail, certifications, or references, you’re a liability
- They need internal buy-in, so give them tools to advocate for you internally (pitch decks, summaries, proof of impact)
Working with corporates is slow by nature, but being procurement ready speeds it up and makes you easier to champion inside their business.
If you need help getting procurement ready, why not join Stone & Chalk. We’ve helped our startups navigate procurement processes, prepare due diligence packs, and become corporate-ready. Find out how you can join us.
