As the business world becomes more complex, a small business owner can no longer be an expert in all the specialized disciplines a small business needs. Despite the fact that small business owners must necessarily focus on producing and managing sufficient cash flow and attracting customers, it is also vitally important for them to cultivate and nurture relationships with a support team. This group includes:
Employees
To the bank
An accountant/tax specialist
A lawyer
an insurance broker
A sales and marketing professional.
Employees
Though thinking in terms of a “relationship” with employees may seem a little strange to a business owner, that relationship might be the most important of all relationships an owner must cultivate. Because good employees are such an important resource in a small business, the owner’s time and effort to nurture that relationship has a great return on investment. Employees who feel seen, respected, and appreciated almost always produce more than anticipated.
Employees represent, indeed are, the company to customers. The business relationship with customers depends largely on their experience and interaction with employees. Happy employees tend to want to please customers, they want to do a good job, and they want to stay on the job. This is important for continued high-quality customer service and avoids the significant expense of employee turnover, employee retraining, and the costly but unavoidable “rookie mistakes” of new and inexperienced employees. Additionally, having reliable, long-term employees can free up the owner to handle off-site tasks as needed. Establishing a retirement plan can benefit you and your employees.
a banker
A banking relationship is an obvious necessity, not just for routine business banking, but particularly when capital is needed to grow, increase inventory, purchase a building, bridge a short-term gap between accounts payable and accounts receivable. or to address cash flow seasonality. In the business. The banker a homeowner turns to for a loan must know the business owner, understand the history of the business, and understand the owner’s judgment and credibility regarding the use and recovery prospects of a loan. If the long-term relationship exists, or at least is in the process of being built, the loan application has a much better chance of being approved. If the business has borrowed and repaid loans in the past, the established history and relationship greatly improves the prospects for approval. (Loan protection insurance can help in case of financial difficulties.
Accountant or Tax Specialist
A relationship with an accountant is equally important if the business owner wants to rely on the quality, clarity, timeliness, and understanding of the financial reports provided. A relationship with an accountant can also enhance a company’s credibility with a banker when the company seeks additional capital.
Many small businesses combine the functions of accountant and tax specialist in an external entity for reasons of convenience, time and cost savings. This is fine if the accountant has the required tax experience for the industry and the tax experience for the specific business they serve.
attorney
Every business owner should have a relationship with a business attorney, tort attorney, or law firm. When an owner invests money and effort in building a business, he must protect it from loss as a result of a lawsuit.
Insurance broker
As part of business risk management, the business must also have a relationship with, and the trusted advice of, an insurance broker who provides the optimal coverage in the relevant areas within the constraints of the business budget.
marketing professional
Depending on the owner’s sales and marketing experience, a relationship with a marketing professional is highly recommended. Most small businesses start with an entrepreneur who has a specific technical skill, business certification, or has built up a following of clients for good work.
