Building Relationships for Business Success
Most business owners know they can’t establish a thriving operation without building quality relationships with customers, vendors and other business leaders. However, it’s equally as important to create a network of support professionals in the financial advising, accounting, banking and legal fields.
Tapping into the unique training and professional acumen of experts can help guide you toward success. Here is how your company can benefit from creating vibrant and strong relationships.
Professional Relationships for Financial Success
According to the Bureau of Labor Statistics, only 25% of businesses thrive beyond the first 15 years of operation. Entrepreneurs who do realize long-term growth often attribute part of their success to professional relationships developed as they build their companies.
Partnering with a financial advisor is one sound practice employed by many successful business leaders. A professional trained and educated in financial planning can help guide your fiscal decisions and may be able to help you save capital, manage risks and retain more of your valuable employees.
An accountant also is important when it comes to handling finances. A Certified Public Accountant (CPA) is trained to assist you in properly managing your books and gaining greater insight into cashflow. A CPA can help you create a yearly tax strategy that may lower the company’s liability while preserving your credit integrity.
Credit integrity is a vital asset should you ever need to apply for a loan or line of credit. Financing can allow you to make capital improvements, purchase new equipment or inventory, or provide float through a temporary cash shortage.
In 2021, 36% of firms with employees applied for financing, and 90% of these companies did so through a bank, according to the Report on Employer Firms conducted by the Federal Reserve Banks. However, waiting until you need funding may not be the best time to start a relationship with a business banker. For one thing, you could miss out on expertise along the way that could help ensure the credit worthiness of your operation.
Your banker also can advise you on opening the right checking account, obtaining the correct type of debit or credit card, and even set you up with online banking and payment management. Having an existing relationship with a banker can make it easier to get financing when you need it.
Building Connections Beyond Financial Management
While the support of financial professionals is critical to the growth and success of your business, other relationships can benefit you and your company as well.
With 20 million civil cases filed annually in the United States, you’re probably aware of the value of legal counsel if your business is taken to court. However, you are far more likely to use legal assistance for purposes other than building a defense.
A lawyer can help you set up your organization’s structure and determine whether a limited liability company, corporation or partnership is best. In addition, your lawyer is available to answer legal questions that may arise in the daily course of operating a business, including those associated with tax law changes or expanding operations to a new state.
While you’re building key relationships like these, don’t forget the value of mentorship. Business owners who engage with successful industry entrepreneurs find guidance and support as they grow their operations and have profitable role models to turn to for advice.
Another key relationship not to overlook is that of your employees. Nearly half of businesses say obtaining and maintaining quality talent is one of the biggest challenges they face. At the same time, 46% of employees leave a firm because they feel undervalued. Building relationships with employees through trust and mutual respect, while rewarding quality performance, can help you develop a tightly knit support system that encourages future growth.
It’s important to understand that no business is ever created in isolation. Building quality professional relationships is critical to the growth of your operation.
The articles in this blog are for informational purposes only and not intended to provide specific advice or recommendations. When making decisions about your financial situation, consult a financial professional for advice. Articles are not regularly updated, and information may become outdated.