Wednesday, 8 October 2014

Small Business Power Groups

When playing a football game, diving under water or climbing mountains, we see that two or more like minded people join forces and work towards a single goal.

There is a famous saying that one is one and two is eleven, so when two or more complimentary business work together towards a single goal which is to serve more customers we can call their relationship  a small business power group.

It has long been proven that referrals are one of the best way to acquire more customers so why not join forces with likeminded businesses and work together and serve your customers better.

Business networking and referrals is not a new concept, many small business use it regularly to reach more customers and grow their business but in most cases they are doing it alone. Imagine if you hire ten sales people and each one goes out and promotes your business, the overall outcome would be ten times better than what a single person could achieve, similarly when two or more complimentary businesses join force and work together and promote each other’s business the result would be more customers and better service.

Here are few points to consider when you should start your power group

Complimentary Businesses

The first thing to consider would be to go through your contact list and find businesses which are complimentary to your services or products, for example if you are an IT shop, may be you want to join forces with a web site development company or social media marketing company, if you are a building inspector, you may want to look for property management businesses and join forces with them.

Taste it First
Every business wants more customers so you will definitely get a positive response when you will meet a few businesses and present your idea of building a power group. However most of them will not start referring their customers straight away. The reason is that they don’t know much about other businesses in the new group like their strengths and weaknesses, so the best way to build a new relationship is to trial each other with a small job and taste the quality of each other services and products.

Keep in Touch
When joined forces it is essential to keep in touch, the ideal time frame is once a month. It is good to catch up for a coffee or lunch with other businesses in the group and refresh the commitment. Another way to keep in touch is via social media channels and email drops. A facebook update or a short tweet will help build the relationship.

Thanks plus
It is natural that some business will be more likely to get referrals than the other, for example a bookkeeper or an accountant will definitely get more referrals because every business needs a bookkeeper or an accountant, in contrast to that only a few businesses will need services of a construction or a building company so it is not possible to match one for one referrals between the power group members. To be fair it is good to have some formal or informal arrangement in place, a small thank you card and a gift will go a long way in building relationship and getting more referrals in future.

YZM Technologies is a Perth based Software Company specialising in building custom software, databases and mobile apps and helping small businesses achieve better results by optimising business processes.