Many young entrepreneurs and business owners find themselves trying to pull customers away from other local businesses regardless of the services they offer. It’s a rather pointless venture given that the audiences could be entirely different, but it’s inexperience and poor assumptions that often cause budding managers to make bad decisions that could negatively affect their business.
Networking with other companies should be seen as an opportunity and not a counterintuitive action, especially if your businesses could work together on certain projects in the future. To help explain this concept in more detail, we’re going to discuss the benefits of networking with local businesses in your area and why it’s so important to work together.
Both businesses become more visible to their respective audiences
Working together and networking with other companies helps to increase the exposure that you both receive. For instance, if you’re a construction company then partnering with a skip and plant hire business such as www.farwells.co.uk means that their branded equipment will be visible on your building site. You’ll also have the opportunity to build a good working relationship with the skip hire company, meaning that future services could be less expensive if you’re able to provide regular orders and you’ll both be able to refer your audiences to each other’s businesses.
For example, if a client asks you about the skip hire services you use then you could refer them to a company that you’ve worked with in the past. Similarly, if the company you partnered with briefly is approached about construction services then they can point those customers in your direction. If that customer then goes on to request your building services, the skip hire company will also benefit because you’ll likely request their services again. In short, it creates a positive local community that you can both benefit from.
Supporting local businesses is better for the local economy
Business owners are typically very cautious about partnering with other companies because of the risks involved. The other company might not uphold their end of the bargain or they might even talk down your business as a means to draw clients away from you, but in reality, this rarely ever happens.
You see, growing the local economy is in every company’s interest. It draws more potential employees to the area, it brings more people to the area that your stores are located in and it increases visibility for both your brands. This creates a sense of teamwork despite your industries being completely different, and this can open up benefits such as neighbourhood blacklists for rowdy customers and purchasing services and products from other local businesses means that you have a convenient local source to make use of.
It’s important to remember that improving the local economic situation is in the best interests of every business in the area, hence why building partnerships with other companies in the area is a big deal and ultimately beneficial to everyone.
Working together provides you with many partnership opportunities
Working with another business is a fantastic way to take advantage of partnership opportunities. Teaming up with other businesses can help you both tackle larger projects which will not only increase your exposure but also help you develop a larger clientele list and reach out to a larger audience. This is especially important for small businesses that would otherwise have a hard time reaching out due to their limited resources. With a larger company giving them a little push, it’s much easier to reach a wider audience and find more clients to work with.
A good example would be two small companies that work in transport-related industries; one business specialises in vehicle repairs and spare parts while the other has access to a network of drivers to carry out intercity deliveries. Together, these companies can form a partnership that offers exclusive benefits to each other. They can take on larger projects together if needed and they can refer customers to each other as a way of building new contacts and generating referrals.
In short, working together with local businesses means that you’re more likely to find new clients to work with. Networking is vital no matter what industry you work in so make sure you contact local businesses and offers partnerships that you could both benefit from.
To conclude, it may be seem strange to work together with other businesses at first especially if you’re a relatively new business owner, but even if you work in the same industries, your core audiences may be different and, as a result, you can actually help each other to improve brand awareness for the both of you and form partnerships that everyone can benefit from.