Ten ways to strengthen critical business relationships

by Ty Freyvogel

November 21, 2007 —

Even the smartest, most hardworking entrepreneurs depend on other people for their
success. Ty Freyvogel, founder of MakingSenseOfYourBusiness.com,
suggests you make 2008 the year you start showing them you know that.

"There is no such thing as a lone wolf entrepreneur," asserts Freyvogel. "Your success is intertwined with
a complex network of other people and organizations. All of those relationships
must be constantly tended and nurtured. Even though your interaction with your
customers is different from how you interact with employees or vendors or even
your bankers, your reason for forging strong relationships with them is the
same—building and maintaining a successful business in 2008 and many years
after."

Here are ten ways you can start strengthening your business relationships in
the upcoming year.

Learn as much as you can about everyone you work with. Then, act on that knowledge.
You need to know as much as possible about everyone from your customers to your
vendors to your employees so that when their needs change, you can be there
to provide them with what they need to stay happy with your business.
"Constantly ask them, 'What can I do for you?'" advises Freyvogel.
"Then, do it. They'll appreciate your efforts to help them be as successful
as possible. Always treat them with the utmost respect and do everything in
your power to make them happy. That may mean anything from giving a customer
who is going through a hard time a discount that is 'especially' for them to
giving an employee whose daughter is starting college an unexpected bonus. Acts
such as these are the building blocks of creating strong relationships. (Remember—don't
worry that you might be playing favorites; instead, make everyone feel like
they are your favorite.)"

Treat your vendors like honorary employees. It's important to nurture relationships
with those people who aren't necessarily working for you but who service you
or your company regularly. This can mean anyone from the package delivery guy
who stops by every day to the materials supplier who keeps your warehouse stocked
to the designer who keeps your website updated.

"Show them that you appreciate what they do for you and also that you care
about them and their companies," says Freyvogel. "Get their e-mail
addresses and cell phone numbers and stay in touch with them. You never know
when an emergency might arise in which you could use their help. Always acknowledge
when they have gone above and beyond the call of duty to make you happy. And
don't forget to send a quick note to their boss—recognition means everything.
It's also important that you make sure your vendors are getting as much value
out of their relationship with you as you are with them. When this happens they
are more likely to cut you a break when you need it, or let you know when something
important is going on in your industry."

Know everyone's birthday. You might be thinking, How much of a difference will
saying "Happy birthday" really make? Well, the answer is a big one.
People love to be acknowledged no matter the reason. And in a world where everyone
is so wrapped up in their own lives, getting a happy birthday wish from the
people you regularly come into contact with is becoming a rarity.

"Set up a Google calendar that includes the birthdays of everyone you come
into contact with on a business level and set up reminders that will let you
know when those days are close," suggests Freyvogel. "When someone's
name pops up, take the time to send a card, call with a birthday wish, or even
just send a quick email acknowledging her special day and thanking her for the
help she gives your business. You'll be surprised how powerful those two words
can be and how much they can benefit your business."

Encourage a sense of ownership among your employees. Whether it comes from having
a voice in major decisions, being able to work directly with clients, or actually
owning stock, a sense of ownership will go a long way toward creating strong
ties between your employees and your business. Inspiring your employees to love
your business as much as you do will strengthen your company's foundation—and
your business will be that much more likely to survive setbacks and grow to
great heights.

"To create a sense of ownership, I like to use what I call A Stock and
B Stock," says Freyvogel. "Here's how it works: A Stock is voting
stock and B Stock is nonvoting stock. The B Stock is distributed among my employees
and myself, while I retain the voting stock. While the employees have no final
vote in what happens with the company, they still receive all of the benefits
of owning stock. Because they feel like partial owners of the company, employees
will work harder and take more pride in what they do."

Have one-on-one conversations with your customers to find out what you can do
better. Most of the time unsatisfied customers don't approach you with a detailed
list of the things they'd like for you to improve on. They just leave you for
one of your better-equipped competitors. Therefore, you must set aside some
time to ask them what they need from you.

"Never get so caught up in your daily keep-the-business-running chores
that you can't spend some time interacting with your customers," says Freyvogel.
"Ask them if there is a way for you to better serve them and let them know
about any of your new products or services. Provide surveys that can be filled
out anonymously in case customers aren't comfortable telling you what they think
face-to-face. And make it a point to always call and follow up with customers
after they purchase a product or service from you. Make an effort to remember
every customer's name, and always, always greet them with a smile and a handshake."

Make your start-up loan payments on time, no matter what. Always have enough
money in your account to make your monthly loan payments when they're due. It's
also a good idea to set up a separate emergency account and make sure you put
something in it every month—someday you'll be glad you did. You don't want
to gain a reputation with your bank as someone who doesn't make loan payments
on time. Staying close to your bankers can also help you secure your finances.
Set up a safety system with them to ensure that all of your deposits are going
through in a timely manner.

"Unfortunately, I had to learn all of this the hard way," says Freyvogel.
"I once had a manager who was embezzling money from one of my businesses.
I had a close relationship with my bank and the bank manager noticed that something
wasn't adding up with my account. He called me to let me know and we were able
to set up the necessary precautions with them to ensure that no one was ever
able to embezzle from me again. Thanks to my close relationship with him, I
was able to correct a problem before it became even more costly for me."

Contact your mentors frequently. Think about those people who gave you valuable
advice when you were trying to get your business off the ground, or that person
you call immediately when you need advice. That person is your mentor, and you
want to have a close relationship with her so that she is willing to go that
extra mile to help you build your business.

"Don't call your mentor only when you have a problem," says Freyvogel.
"Get in touch regularly, even if it is just to give her an update on how
things are going. You never know, she might tell you about a contact that could
help you in a certain aspect of your business, for instance, or tell you where
she sees a hang-up. Always send a thank-you note after she's done something
to help you—it's a small gesture that has a big impact. And be sure to
ask her once in a while, 'Is there anything I can do for you?'"

Constantly recognize a job well done. Everyone likes to be told they've done
a good job on something, especially your employees. Typically, people who are
interested in working for small businesses are driven more by recognition than
by dollars. So whether you implement an Employee of the Month plaque or simply
say, "Thanks for the great job!", never miss an opportunity to give
your employees the recognition they deserve. And when a client compliments an
employee's work, never steal the credit—indeed, be sure to pass the glowing
review along to the rightful owner! And let everyone in the company know. It's
good for morale to know that recognition might be coming their way some time
in the future.

"Also, never hesitate to acknowledge when one of your vendors is doing
a good job," adds Freyvogel. "If one of your delivery guys is always
on time, friendly, and helpful when you need him to be, call his boss and let
him know how happy you are with the service you receive from his employee. Tell
him how great this employee makes his business look, and always tell that employee
how much you appreciate the excellent service."

Be flexible with the people you count on. As a business owner you should know
that rarely will a day turn out exactly how you had planned for it to. That
is why it is so important for you to be flexible when those around you run into
problems and need to change their schedules in a way that affects your business.
Maybe one of your vendors needs to make a delivery earlier or later than normal
or maybe an employee has to leave to take care of a family problem. Don't sigh
and act annoyed, says Freyvogel, even if it's very inconvenient for you.

"Always be understanding when a problem comes up out of the blue and ask
if there is anything you can do to help," says Freyvogel. "Their past
great service should count for something, so never make vendors feel like they
will lose your business or make your employees feel like they will be in trouble
with the boss. Besides, you never know when you will need the same respect from
them."

Make sure employees have everything they need to do their jobs. Nothing frustrates
a high-performing employee more than having to struggle to do his job because
he doesn't have the right computer program or because he must make do with faulty
equipment.

"Be the boss who constantly communicates with his employees and ask them
whenever you have the chance if there is something you can do that will make
their jobs easier," says Freyvogel. "Sometimes you'll be able to take
care of it right away; other times it will take awhile. But the simple act of
showing you care will go a long way."

Here's the bottom line: no matter how determined, hardworking, and talented
you may be, you simply can't be a successful entrepreneur all by yourself. It
takes a village to run a company. Never forgetting that fact is critical to
your success.

"Always be on the lookout for ways to show your key players that you want
to be their favorite business owner," says Freyvogel. "Make sure they
are getting as much out of the relationship as you are. Show them you care.
Creating and nurturing positive business relationships will make being an entrepreneur
a hugely rewarding experience. The more people who care about you and your business,
the easier it will be for you to maintain your company's success in 2008 and
in the years to come."

Freyvogel Communications