types of business relationship

Many times, you’d hear business owners lament about how they didn’t get a contract or make a sale, even when they were the most qualified.

They get angry at other business owners who take out the time to build relationships beyond the value they offer to get more customers, raise capital faster, attract top talent, etc.

But the truth is that value or merit is not the only thing that matters to your customers or anyone else – relationships matter too.

And instead of being a victim, what can you do to make your relationships work for you?

Are you conscious of the different types of business relationships critical to your success?

In this article, I would share six of those relationships, their importance, and how you can use them to grow your business.

Types of Business Relationships Critical For Growth

If you have been in business for a while, you don’t need anyone to convince you about the importance of relationships.

But the problem is that many businesses don’t see the need for a more than transactional relationship with the various segments of people they need to have a meaningful relationship with.

They limit their relationship with customers to buying and selling. They believe that their suppliers just want to make a sale, so they don’t take the time to build that relationship into something more impactful to their growth.

I talked about how to start building business relationships with some tips here.

Here are five (5) Critical relationships every business needs to succeed: –

1. Employee Relationship

2. Customer Relationship

3. Supplier/Partner Relationship

4. Financial Relationship

5. Peer Relationship

1. Employee Relationship

“An employee is the most valuable asset for an organization.”

― Yogesh Chauhan

Businesses and business owners must develop mutually respectful relationships with their employees. I know you’ve probably heard this before, but here why it matters.

Your employees are your most valuable assets, and if the relationship you have with them is just transactional, they would have no reason to be loyal to you or add any more value than they are being paid for. Employees that feel respected are more productive, they are less likely to leave your business just for higher pay.

Lastly, the way you treat your employees is the way they would treat your customers too.

To build such employer-employee relationships, you have to show that you respect them; communicate effectively, include them in your decision-making process, and make them feel welcomed to do more in the business.

2. Customer Relationship

“Imagine your customer is your best friend—listen to their concerns, be a shoulder to lean on, and then shift the focus from what went wrong to how you can help make it right.”- Rachel Hogue

Everyone is talking about customer relationship these days, and that is great. But the problem is that much of it does not reflect beyond pen and paper. Without customers, you don’t have a business.

Your relationship with your customer should be about how you can help make their lives better, before and even after you’ve made a sale.

Share valuable tips, resources, ask for their feedback/input when possible, and always be in communication with them.

3. Supplier Relationship

“Only recently have people begun to recognize that working with suppliers is just as important as listening to customers.” – Barry Nalebuff

Having a good relationship with your suppliers or vendors is critical to the survival of your business. It is not always about the money, the way you treat them can determine how well they would treat your business.

Business owners, who have good relationships with suppliers gain by getting their orders faster when needed, saving money through discounts, access to loans or supplies on credit, and industry insights that would give you a competitive edge.

To build a good relationship with suppliers, try to understand their position, be honest and transparent with them, and treat them as knowledgeable resource.

4. Financial Relationship

Finance is the lifeblood of any business. Yet, you would be shocked at the poor relationship many small businesses have with their finance people; accountants, investors, banks, etc.

Many business owners don’t see the need of building long-term relationships with banks they trust or prospective investors until they need to raise capital. But the truth is that it is already too late then.

The best time to start building a relationship with your finance people long before you need to raise capital. It would make your fund-raising process faster, and expose you to better terms, etc.

5. Peer Relationship

Every relationship segment or type I have mentioned above has a direct impact on the growth of your business. But the peer relationship can grow your business by influencing other relationships and areas indirectly.

Building peer relationship has been a secret sauce to the growth of many relationships for hundreds of years. Peer relationships are beneficial because the business owner can leverage the relationships other business owners in their industry or market have built and grown much faster than they would have if they had to build those relationships themselves.

They are also a cheap source to gain practical industry insights and knowledge.

A good place to form peer relationships is by networking with other business owners individually or collectively through a mastermind group. By being a member of a mastermind group, many small business owners are better equipped to grow their business faster by leveraging the resources of others.

If you are tired of being a victim of little or no business connections – joining SME Mastermind is your chance to power up your relationship network and unleash growth in your business.

Join SME Mastermind today!!!