The Importance of Healthy Business Relationships
Use your current network to its full potential to make it your most valuable asset.
Startups might not have a lot of financial resources, but their strongest asset might be a solid network of business contacts.
Business-to-company and business-to-consumer relationships are examples of business relationships. Using social networking, cold calling, giving away something for free, and promptly resolving conflicts are all effective ways to establish and cultivate business relationships.
This post is for entrepreneurs and small business owners who desire to develop solid business partnerships and reap their rewards from them.
It’s typical for new businesses to struggle with funding and inventory shortages. However, their most important asset—high-caliber business relationships—doesn’t show up on the balance sheet.
A robust network may consist of customers, clients, suppliers, purchasers, outsourced service providers, the government, the media, and even rival companies, depending on the business. Every component of a company’s network needs a foundation of amity and trust, regardless of the situation.
On building, sustaining, and even ending business partnerships, we talked with professionals, business owners, and entrepreneurs. On building, sustaining, and even ending business partnerships, we talked with professionals, business owners, and entrepreneurs. Business-to-business (B2B) and company-to-consumer (B2C) relationships are the main sorts of business relationships we’ll examine (B2C).
Business-to-business (B2B)
B2B partnerships up or down the supply chain are often of the utmost priority. Such connections are necessary for operations; for instance, a cosmetics company cannot operate without upstream suppliers or downstream retailers.
However, hardly every company has vertical supply networks like this. Partnership opportunities are also provided through horizontal networks. Relationships between your company and those at the same level of the supply chain are referred to as horizontal relationships. A business with a similar clientele or a competitor, such as a wedding photographer and a baker, are examples of a horizontal relationship.
Business-to-consumer (B2C)
A B2C transaction is one in which companies sell goods or services to customers. Building client trust is essential if you want to maintain these connections, which are mostly driven by consumer behaviour.
A shareholder at Baker Donelson and vice chair of the firm’s emerging enterprises division, corporate lawyer Emily Brackstone said, “Building trust is a vital aspect in developing quality commercial connections.” “People like to conduct business with people they can rely on to behave in their best interests or at the very least not against them. A relationship may be difficult to save if that trust has been lost.
Managing customer relationships and maintaining product satisfaction are other critical components of a successful B2C experience. According to Brackstone, in order to assure customer happiness with your products, you must make sure they live up to the standards your customers have come to expect.
Additionally, you want to make it simple for clients or consumers to contact you. People may question your dependability and feel less confident doing business with you if you are difficult to reach.
Business ties include those with customers. You build these relationships and cultivate the sales you were looking for in the first place when you put the needs of your customers ahead of your own sales.
Nurturing business relationships
Here are some strategies for fostering business relationships that work:
Cold calling
Offering free samples
Using social media
Keeping in touch
Building trust
Settling disputes
Cold calling
Building strong business relationships doesn’t require a special formula, and even while the techniques are obvious, it doesn’t make them simple (ahem, cold calling).
The CEO and co-founder of Pop-Up Firm School, Simon Paine, stated that if he were to launch a business tomorrow morning, his first step would be to reach out to everyone he knows. He suggests making three lists with the headings “must call,” “should call,” and “be pleasant to call” and then starting the phone calls from those lists.
Making phone calls may seem archaic to some, but Paine noted that this is where commercial advancements are made. “When you speak to people, things happen. Social media and emails are far too simple to ignore.
Offering free samples
Offering free samples “This might be local people, people connected to your sector if you are in the B2B space, or influencers in your field.”
This method uses social media as a medium for contact and communication. Wood advised signing up for a Facebook group specific to your industry. Most likely, there is already one in your neighbourhood. Wood emphasised that these should not be viewed as free advertising venues.
The secret to getting the most out of these [business organisations] is to constantly put others’ needs ahead of your own, he remarked. “Those who promote themselves or drain the group’s value without contributing their fair share will get a poor reputation.”
Social media usage
The recommendation to avoid overtly self-promotion also holds true when utilising social media for customer service and other relationship-building activities.
There are frequent errors that companies of all sizes commit, according to Paine. They neglect the social aspect of social media when trying to sell directly there, they target a too wide audience and don’t narrow down their niche enough, and thirdly, they don’t do it regularly. How to Discover Your Business Niche is Related.
View social media as a chance to engage with your target audience rather than a passive marketing tool where advertising are occasionally broadcast and contact is one-sided.
Customers already anticipate high levels of interaction from businesses. For instance, people frequently “at” companies on Twitter to express gratitude or, more often than not, to criticise them for terrible customer service.
Instead of waiting for clients to contact you through official means, you can approach them where they are using social media.
Maintaining contact
It gets increasingly difficult to adequately care for everyone in your Rolodex as you have more business relationships. You should thus make an effort to stay in touch with all of your business relationships. You are not required to communicate with them on a daily, weekly, or even monthly basis. Social media is a lot more organic approach to remain in touch.
Take a moment out of your day to like a post that a professional connection of yours shares on LinkedIn. Email them to congratulate them and learn more about their new position when they announce a promotion or job.
Keeping in touch via social media is quick and simple, and if you demonstrate interest and a want to assist, it may result in new business.
Keeping in touch via social media is quick and simple, and if you demonstrate interest and a want to assist, it may result in new business.
Building trust
You might not trust each other completely the first time you work with a new business contact. That’s acceptable as long as you are not acting with mistrust. Building trust over time is more crucial to establishing your credibility as a capable and reputable person.
Your connections are more likely to introduce you to fresh prospects if you have a good level of trust with them. Additionally, they’ll be more likely to keep in touch.
Settling disputes
Disputes frequently arise during business transactions because the interests of many parties can occasionally conflict. When this occurs, act in a professional manner and restrain your emotions. Brackstone suggests having calm, direct conversations, ideally face-to-face.
“Bringing the parties together in a room and talking face to face can frequently go a long way toward clearing the air,” she advised. “People frequently act inappropriately when communicating over email or even the phone, but when they are seated across from one another at a table, they suddenly become much more reasonable. However, choose your meeting participants carefully because inviting someone who exudes negativity or has a controlling personality can create an unfavourable atmosphere.
The advantages of creating strong business partnerships
Building strong business relationships has various benefits, including utilising horizontal business networks and receiving referrals. The benefits of cultivating a long-lasting connection are also limitless.
Client discovery and referrals
Building business ties is crucial for a company with little time and money, according to Alistair Dodds, co-founder and marketing director of EIC Marketing. The discovery and referral industry depends on them.
When you’ve put time and effort into your company relationships, referrals may come naturally.
According to Brackstone, “individuals will naturally want to grow the company they conduct with others they enjoy working with and, in many situations, may even create other business prospects for those they enjoy working with.” “Recommendations from happy customers are the best source of business.”
You might be shocked to hear that establishing ties with rival businesses has benefits as well — if not for referrals in exchange for information, then at the very least for insider information.
Dodds, who has connections with other digital marketing businesses globally, said that it’s preferable to develop referral relationships where your region or essential services don’t overlap. They are delighted to repay the favour by giving us leads, introductions, and new business in the skill sets we know they specialise in but which we don’t.
Utilizing horizontal business networks to the fullest
Horizontal networks offer a lot of possibilities. You have more opportunities for referrals, partnerships, and assistance when you develop relationships with horizontal network businesses.
Wood uses the term “adjacent” business to describe horizontal network companies. These companies have a similar consumer base to yours but are not direct rivals of yours. A florist and a funeral home might be a bit off-the-wall examples.
No limit on the use
Strong business ties, unlike money, are a resource that never runs out; a well managed network can only grow. You may be able to count on the other person for fair favours as required as long as the relationship endures.
Is it time to dissolve a business relationship?
However, not every business connection is worthwhile in the long run.
The parties concerned should endeavour to end the association without causing more harm if it is obvious that a business relationship isn’t functioning, according to Brackstone. “They should deal with the problem head-on, explain why the relationship isn’t working, and offer a sensible plan for the parties to end it.”
Don’t leave a terrible client relationship without finding a workable compromise for the sake of your company’s reputation. If these problems are handled properly, it could mean the difference between one disgruntled client and a PR disaster.
