Why Relationships Matter in Small Business and How to Build Them

Small business success is built on one thing -- relationships. You have relationships with customers and clients, competitors, vendors and providers, employees and contractors, and yes, even the press. If you don't know how to build solid relationships, you may be sabotaging your own success, without even realizing it.

Why relationships matter

In small business, relationships are everything. You have relationships with all kinds of people in your business. Your relationships with customers and clients matter because people do business with people, not businesses. If potential clients and customers know you, like you, and trust you, they'll want to do business with you. How do you show them that they can trust you? Build a relationship with them and let them get to know you. Likewise, get to know them and you'll be able to serve them far better.

Your relationship with your competitors matters because you never know when a competitor could become a partner. If you encounter a prospective client who you know you can't serve adequately, but you know someone who could serve them very well, send the client to that person or company, even if they're a competitor. You'll be known as the provider who cared enough to make sure that person was served well. And your competitor just might return the favor one day.

Building relationships with employees and contractors inspires loyalty. This one's not about building friendships, but about building rapport. You want to form a connection and open a dialogue so that you can satisfy their needs and provide them with everything they need to do the best job they can for you.

And finally, your relationship to the press is important if you seek any form of publicity. If the press knows they can come to you for a succinct quote, blurb, or comment on a particular matter, and if they know they can rely on you as a trusted expert who won't make demands or have high expectations, they'll come to you again and again for quotes and sound bites.

How to build relationships

Be more than just a businessperson - be a person.

You always want to be courteous and professional in business, but there's more to being a businessperson than just being professional. You're a businessperson and that means you want to be relatable and friendly so that people are comfortable around you. I know several businesspeople who are so formal and professional that clients often feel uncomfortable being around them, and as a result, don't want to do business with them. Let your clients relax and remember that at the end of the day, as professional as you might be, you're still people.

Get to know your clients and customers

The best salespeople I know never start by asking about the sale. Instead, they start with the important questions -- questions about life, family, hobbies, and interests. They get to know their clients and customers so they can connect to them on a personal level and form a connection. People like when others notice and remember details that are important to them, because let's face it, in today's busy, fast-paced world, most people aren't going to remember your son's name, or your anniversary. But what if someone does remember those details? Doesn't that represent that they'd care enough about your business and your well-being to provide you with exceptional service if you were their client or customer? And don't you want to convey that sentiment to your clients and customers?

Provide value

This is all part of something we call, "providing value," and no one explains it better than my friend, Bob Burg, co-author of The Go-Giver and Go-Givers Sell More. As Bob explains, it's important to provide value, whether it comes in the form of going the extra mile or just listening to your clients, but not because of the rewards it brings. Provide value for value's sake, and ultimately, the rewards will come. But that's not why you do it. It's hard to understand, especially when you're struggling to make the sales you need or to keep your business afloat, but that's when it's more important than ever to keep focusing on value.

There are many ways to form connections and build relationships, but the most important thing you can do to create relationships is to focus on the other person and what they need. Other people focus on their own needs, not on how great your product is. So focus on their needs, too, and you'll show them that you're interested in more than just the sale. Next time, I'll talk about some common mistakes in building business relationships.