Whether it’s a business partner or client, establishing a positive business relationship with them is crucial for company success. However, many may not realize that it’s also a part of a business strategy.
But isn’t a business partnership purely financially transactional?
As it turns out, entrepreneurs who take the time to build these relationships receive more opportunities.
In this article, Jared DeFlurin of Boston explains the importance of cultivating business relationships.
Forging Business Relationships Builds Confidence
Confident and passionate business owners are the best equipped to manage companies. In a study published by ScienceDirect, they stated that “self-confidence is related to better entrepreneurial success.”
Without confidence, other entrepreneurs, clients, or stakeholders will have doubts regarding the reliability and profitability of a business.
After all, who would want to avail a company’s services if its owner doesn’t even have faith in their own business?
Relationship building comes into play to further convince others to purchase or invest in the business. As time goes on and more people hear about the company and the team of passionate individuals running it, effective communication during these interactions can become far easier.
Subsequently, confident communication can get business partners and clients to recommend the business to others.
Word-of-Mouth is Free Advertisement
The information era may be in full swing, but word-of-mouth remains one of the most powerful business endorsements.
Think about this: would people prefer to listen to the opinion or review of an anonymous internet user or their parents’ or friends’ recommendation?
In addition, people wouldn’t recommend a business solely based on product quality – they prefer enterprises to whom they have an attachment. However, to feel connected to a business, they must first learn the company’s core values through clear communication.
Business partners can also recommend the business, though.
Let’s say the topic of why the company was established is brought up. If these reasons resonate with potential business partners or investors who have similar goals or advocate the same charities as the business owner, they’re more likely to team up.
However, these are minor conversations that simply help business partners establish common ground. In the long run, business relationships can aid in the success of both parties.
Communication Builds Better Business Ties
Businesses won’t be smooth sailing 100% of the time – and that’s understandable, as long as everyone is aware when the market isn’t doing well.
But what happens if investors or business partners aren’t made aware?
While lack of transparency can dissuade clients, business partners, and investors from further supporting the business, unexpectedly delivering bad news won’t do very well, either.
Fortunately, if there’s already an established relationship between two entities, communicating both the good and bad sides of business transactions can be done much more easily.
To business owners with a workforce to manage, being transparent to the employees guarantees that they won’t badmouth the company if they leave.
In an MIT Sloan Management Review, they stated that employees are ten times more likely to leave a company when it has a toxic workplace culture – and this is incredibly detrimental for business owners who heavily rely on their labor pool.
Furthermore, a positive work environment encourages employees to work for the business longer and recommend the company to future applicants and clients with enthusiasm.
Summary
In all aspects, communication is vital. It’s also paramount in all business, as it can forge relationships that vastly boost success and reputation.
Interact with business partners, investors, employees, and clients more. They represent the enterprise too.