As the business world becomes more and more complex, small business owners will find it difficult to become experts in all the professional disciplines their business needs. Although small business owners continue to demand that they generate and manage cash flow while attracting customers, establishing a business relationship with a reliable support team is also crucial for them.
- Establishing business relationships with external expertise providers is critical to the success of small businesses.
- A good relationship between employees and customers is the most important.
- The necessary professionals include bankers, accountants, lawyers, insurance representatives, marketers, specific skill trainers and technical consultants.
Business support team member
According to the nature of the business, its support team includes customers, employees, bankers, accountants/tax experts, lawyers, insurance representatives, sales/marketing professionals, skill trainers and technical consultants. Since it is impossible to obtain all this expertise internally, it is essential that the owner establish and maintain close working relationships with many of these external suppliers before any urgent needs arise. Let’s take a look at how cultivating relationships with each of these groups can have a beneficial impact on small businesses.
The financial responsibility of business owners begins with their relationship with employees. Probably the most important practice. Good employees are the main resource of a small business, so the time and effort the owner invests in cultivating these relationships will bring a huge return on investment (ROI). Employees who feel respected, listened to, and appreciated by management usually work at a higher level.
In addition, employees represent the company to customers. The business relationship with customers depends to a large extent on their experience and interaction with company employees. Happy employees often want to satisfy customers, do a good job, and work hard to keep the job. This is important for the continuity of high-quality customer service and avoids the huge costs of employee turnover, retraining, and the inevitable novice mistakes of new employees, inexperienced employees. Having trusted long-term employees also allows owners to handle off-site duties as needed.
Banking relationships are clearly a need-not only for daily commercial banking, but also for increasing capital, increasing inventory, purchasing buildings, bridging the short-term gap between accounts payable and accounts receivable, or solving the season of corporate cash flow Sexual issues. The banker of the owner’s loan should understand the owner, understand the history of the enterprise, and understand the owner’s judgment and credibility of the reason for the loan and the ability to repay.
If a long-term relationship exists, or at least is in the process of being established, then the loan application is much more likely to be approved. If the company has borrowed and repaid loans in the past, the established track record and relationship greatly increase the likelihood of approval.
To save time and money, many small businesses try to find an accountant who is also a tax expert.
Accountants and tax experts
If the company mainly has confidence in the quality, clarity, timeliness and understanding of the financial reports provided, the relationship with the accountant is equally important. When seeking additional funding, a relationship with an accountant can also increase the credibility of the company among bankers.
For reasons of convenience, time and cost, many small businesses combine the functions of accountants and tax experts in one external entity. It may be advantageous if the accountant has extensive tax experience in the relevant industry and expertise in the tax management of the specific business served by the accounting firm.
Every business owner should establish a relationship with a commercial lawyer, a responsible lawyer or a law firm. When the owner invests money and energy to build a business, it must be protected from losses caused by litigation. Although it is important to work with a lawyer you can trust, it is also important to choose a lawyer who has extensive experience in the legal field where you need their services.
As part of risk management, companies should establish relationships with insurance representatives and seek their trusted advice. The professional should help provide the best level of coverage for the required protection area while keeping in mind any budget constraints.
Based on the owner’s sales and marketing expertise, it is highly recommended to establish a relationship with a marketing expert. Most small businesses start as entrepreneurs with specific technical skills, trade certifications, or loyal customers. When owners want to grow their business outside the established customer base, they should develop a clear marketing plan to address the following issues:
- Target the market
- Optimize the media used in marketing
- Develop brand strategy
- Assess competition
- Get the most value for any marketing funds spent
Normally, owners and employees need training. In small businesses, especially in start-ups, owners may not have time to manage growing businesses with more employees, evolving digital tools and systems, expanding inventory, purchasing additional vehicles or equipment, and managing more customer. Establishing relationships with independent business skills trainers can meet this need.
The most recent on the list of required relationships are enterprise systems or information technology (IT) experts. Business owners should have someone to analyze the existing digital system and come up with methods to effectively manage costs and optimize processes. The person (or organization) should propose specific strategies to maintain business competitiveness in terms of management, project management, and operating costs, while ensuring the scalability of the business model through process improvements, enhanced system capacity, flexibility, and information security best practices .
The importance of interpersonal connections in business cannot be overemphasized. Although these relationships can have many, they are not necessarily time-consuming. However, when companies need experts to help solve problems or take full advantage of windows of business opportunities, they are absolutely essential to long-term business success, and they are of great value.