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Benefits of Developing Effective Business Relationships

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  • 0:00 The Importance of…
  • 1:54 Benefits
  • 4:23 Ready, Set, Network!
  • 5:02 Lesson Summary
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Lesson Transcript
Instructor: Rachel Shipley

Rachel has worked with several businesses developing policies on customer experience and administration.

In this lesson, we will discuss the many benefits of developing effective business relationships. We will take a look at both tangible, and intangible, benefits that can come from these interactions.

The Importance of Relationships

I overheard someone once say, 'It's not what you know, it's who you know.' For some reason, this has always stuck with me, especially when I see it happen time and time again.

In business, no man is an island. Relationships and networking are the names of the game in a successful business. It doesn't matter if you have the most innovative product or GEICO's advertising budget, people (your employees, vendors, network, and customers) are the real secret to a prosperous business.

'What you know,' is still vital, so don't think I'm telling you to quit college or rip up your diploma. The more experiences and knowledge you have, the better. Schooling and training will always be a valuable commodity. It will most likely land you the job after a successful interview. The notion of 'Who you know,' means that you are more likely privy to information that not just anyone doing an online job search would have. 'Who you know,' suggests that connections are just as important as your experience and schooling.

Let's look at an example. John and Ted have both been through a rigorous interview process for a position that opened up at a prestigious law firm. John graduated from Harvard and had one to two years more experience than Ted. Ted went to a respected law school, had good grades, but does not have the same experience as John. However, Ted knows a well-respected partner in the firm and has been given a personal referral recommending him to be the candidate hired. Who do you think the firm will extend the offer to? That's right, Ted.

It may not seem fair, but in business today, it is the reality. Business relationships are beneficial to professionals and companies. Building your professional network by interacting with people, whether through LinkedIn, online social media, business networking events, or even with a casual conversation at the grocery store, is vital.

Benefits

Not convinced quite yet? Let's talk more about the benefits of developing effective business relationships.

Sharing Advice

Sharing is caring! When you have a network of individuals in similar industries or even just a like-minded business associate, your pool of knowledge grows infinitely. Gone are the days where you scour the Internet and books for information or rack your brain trying to figure something out. Enlist the assistance of your new contact and ask for advice on the topic. You never know what his network outside of you is. He may have the information you need with a simple phone call or email.

Acquire Leads on Investing and Lending Opportunities

Building rapport with people can help move mountains in business. Acquiring financing is near impossible in struggling economies and over-saturated markets. Having the right connections could be just what you need to get your business on its way.

Word-of-Mouth Marketing

Referrals, referrals, referrals! Increased business opportunities are probably the most obvious reason people venture into the world of networking. Typically your referrals, from networking groups or collaborative advertising efforts, are high-quality referrals and are easy to follow-up on. See, you don't need GEICO's Gecko to increase your business! Interacting with people and remaining relevant will keep you in someone's mind. Because of this, the next time he needs something (for example, a living will drawn up) someone from your networking group might say, 'Hey, I know a guy that would be perfect to help you with that.' New client, easy as that.

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