Business Relationships Are Critically Important

Members of cultures belonging to this group, among them Asian countries such as China, Indonesia, Japan, Malaysia, the Philippines, and also Brazil, Egypt, Greece, and others, prefer to build deep and lasting relationships with prospective partners before entering into any serious business engagements.  They may expect to continue developing such relationships into true friendships as the business partnership continues.

Both sympathy and trust are essential requirements for them to make deals with others.  With this group, it is vital to be prepared to spend considerable time and effort building strong relationships throughout the business exchange.  With the exception of the Japanese, who seem equally focused on tasks and relationships, members of this group may appear less task-oriented than others may.  They tend to pay little attention to contracts, since most of them believe that the strength of business relationships matters much more than ‘a piece of paper’ does.  Keeping in touch with them on a regular basis ensures that commitments will be kept and opens doors for additional business.

Since they mostly focus on long-term engagements and repeat business, decision makers may agree with initial deals that appear unfavorable for them, expecting their new partners to make up for this down the road.  They do not pay much attention to corporate-level connections, since few of them believe that business relationships can be successful without strong personal ties.  While the more pragmatic members of this group may also engage in business interactions with relative strangers if the prospects are sufficiently attractive, they will most likely focus on short-term benefits and might not shy away from taking unfair advantage of the other party if given a chance.

These characterizations provide clues as to what to expect and where to focus your energy when conducting business with people from other countries.  However, be careful not to take them at face value.  They apply only to business areas that are not critically dependent on personal relationships. In some industries, such as banking, financial services, or legal counseling, the nature of business interactions makes strong trust between the parties involved vitally important no matter what their cultural background.  This requirement may promote different practices in these industries. Regardless of cultural background and type of business, however, spending time and effort to build closer relationships in international interactions is always conducive to business and therefore strongly recommended.

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Build A Core Relationship Strategy

A core relationship strategy allows you to focus 80% of your time on the few (20%) relationships that can help you reach 80% of your financial goals. It also means that you systematically move past or even gracefully “fire” the clients and referral sources that take up too much of your time, for too few returns.

To many readers, this strategy may seem counter-intuitive. Why would you focus primarily on only 20% of your business relationships? Isn’t any client or referral source valuable?

The answer, for anyone who has been in business for a while, is a resounding “No!” Not all business relationships are created equal. Some generate huge revenues without much work on your part. Others make you feel like you’re squeezing water from a stone, and require enormous nurturing and work to extract even a small amount of value. You will be much more successful when you learn to evaluate different types of business relationships, and then focus effectively on those that offer the highest potential.

Here are the reasons why the 80/20/80 rule makes sense:

  • You spend less time to earn more money, because you focus in on your highest-potential relationships and stop wasting time on the ones that won’t help you as much.
  • You develop deeper relationships with your strongest clients and referral sources, and will likely get more satisfaction from your work as a result.
  • You’ll find that you have been leaving money on the table with many clients, and that a bit more attention will net you significantly more revenue per client.
  • You become a trusted, strategic advisor to your clients instead of a mere vendor, so they share information and problems with you before tendering projects out to others.
  • You work with your most desirable clients, while gradually eliminating the “troublemakers.”
  • You get the satisfaction of sending your most annoying clients to the competition!
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How to Build Business Relationships

There is a reason why building business relationships is considered very important today. In most business schools, it is taught as a separate subject. The reason for this being that we live in a world where customer is the king and valuing him should be of great importance. On the other hand, you need to know how to build business relationships with your competitors too. This helps in maintaining healthy and effective competition. There is something called ‘Goodwill’ that we consider as an asset in our respective businesses. This goodwill is achieved mainly through business relationships and the reputation you carry as a business and as a businessman too. For all these reasons, let us see what are the ways in which we can build business relationships.

How to Build Business Relationships:

Networking
Networking is the best way to build business relationships that last. Proper and efficient networking does not only help you gain valuable contacts but also helps in expanding your business. References can take you places and every businessman knows this. Business relationships are not to be built with clients but also with customers. Social networking was done at parties and functions in the old times. Today, the social networking websites have taken us a step further with both, wider reach and wider approach. Networking helps in increasing one to one communication, that saves times.

Reach
Another way of increasing your business relationships effectively is to be accessible and easily reachable. Being easily reachable will help you gain faith and trust of other businesses and clients. Someone who is not available at most times will lose out on a lot of business. Remember, that the world never waits for you. It moves on, every single second. At times when you are not reachable, someone else is and he will benefit with all the profits. There is a reason competition exists. Like it has advantages, it also has its disadvantages. Easy reach will also mean that the customers don’t have to go out of the way to get in touch with you.

Visibility
Visibility is another way of increasing your business relationships. Let’s see how this works. Just like we look for contacts, others too look for them. This is when you come in the picture. If you are not visible in the market, you will be missed. You will lose out on a large portion of business that is available. Indirectly, you will also lose out on the references and the networking. Networking and marketing will help you in increasing your visibility. The importance of communication is not understood till you see the benefits you can gain from it. Communicating shows that you are there and people can get back to you in case of problems.

Show You Care
Keep birthday records of all your clients and their anniversaries too. Send them a card every year as a token of appreciation, and if possible offer them a discount on those days. Many leading brands and stores follow this policy. You partially retain customer loyalty and also give customers a feeling that they are valued. Memberships are another way of building business relationship that benefit both the client and the businessmen. Make sure that your staff is well trained in customer operations and dealing with grievances. Make sure you always show concern towards employees, clients and customers.

Solve Problems Immediately
This is perhaps the most important point while learning how to build business relationships. Business relationships are to be maintained not only with other business entrepreneurs but also with the clients and the customers. Making your customer care operations effective and fast will help you gain the trust of clients. Clients who are not heard out with their complaints will stop using your products and services and this will be a double loss. You will lose business and also help the competitor make profit. Solving problems and grievances on time will give you the reputation of a business that is efficient.

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Ways to Build Business Relationships

The competitive world we live and work in today, demands that we maintain relationships within our circle of work. Competition has always said that it is survival of the fittest and to be the fittest, you need support from the rest. You will understand the importance of contacts and connections only when you develop them. It is said that building business relationship not only help to keep the competition healthy but also makes working more easy. Business relationships are important to both, the businessmen and the clients/customers. Both can benefit equally from well maintained business relationships. Having said that, let’s check out a few ways in which you can develop and maintain these business relationships.

Simple Ways to Build Lasting Business Relationships

Go Social!
Going social is one of the best ways to build business relationship. When people know what you do, most of them will want to get in touch with you to know more. When you involve yourself in a social circle, you not only meet people who belong to the same profession as yours but people working in other sectors too. Not only do you make some great contacts, but also increase the mouth to mouth publicity ratio for your business. Social networking sites are another way of doing the same. They help you to reach to a larger crowd and in lesser time. Attendance at events, parties and functions is the key.

Stay Connected!
Just like you need to give time to your social connections, your business needs your time too, isn’t it? So how do you reach equilibrium? You need to stay connected because as Gary Coleman said, “I don’t hurt or want for visibility, but people seem to forget pretty easily.” One important point here is that you need to stay connected continuously. To achieve this, communication is the ultimate key for building and maintaining business relationships. Communicate and stay connected through calls, messages and e-mails if meeting is an issue. Business issues can come up anytime and your absence at such times can only make you lose a few customers and clients. A good social profile will also attract other businessmen to you. Without communication, there cannot be sharing of thoughts, ideas and visions. Communicating through various means such as online communities, seminars and group discussions where people can ideate together and share their ideas are prerequisites for a successful and sustained business relationship.

Set Reminders!
One thing you have to keep in mind is that business relationships are maintained not only with clients but with customers too. Keeping a record of your clients/customers birthdays, anniversaries and important days really make a huge impact. Sending good wishes cards on special occasions like birthdays and anniversaries, make the other person feel appreciated and is a great way to show that you value the relationship. Similarly, congratulate your client on occasions that demand so. If a customer is celebrating his/her birthday, give them a discount coupon or extra points to redeem on their membership.

Make Things Happen!
If you want to build good business relationships and not just a few for namesake, it is very important that you keep up to your promises. Value everyone who is associated with you and your business. Make your customer service or client grievance team capable of handling your relationships well. Take immediate decisions and solve problems in time. Don’t disappoint or neglect anyone because that will show your inability to deliver. This will be a double loss for you as you will not only lose some valuable clients and customers, but your competitor will benefit from this situation. The sole reason of maintaining business relationships is to survive the competition. You have to live up to the image you portray.

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