Valentine’s Day Advice: It’s all about relationships

The goal of a business is primarily to make money.  Sure all of the existential stuff still applies; you can follow your passion, make a difference, have independence, and go to work in your pj’s.  However, to do all of that, you have to make money and more importantly, a profit.  And in order to do that, you need good relationships.

We’re often asked by business owners how to increase their profit.  There is no voodoo accounting that will make your bottom line turn into real money.  Oh, how I wish there were, muhaha…..I mean, that would be ridiculous.

It’s simple.  There are three primary ways to make more of a profit and it is more about relationships, than it is accounting.

   1.  Lower expenses with great business relationships.

• Lease – Gotten to know your landlord?  Good.  If you are comfortable where you are, the landlord may be willing to offer you a lower rate to lock you in a lease over the next few years.  Especially if you have developed a good relationship with her.
• Vendor discounts – Most vendors will offer a 1% - 5% discount for paying within a certain period of time.  If you have gotten to know your vendor, they may do better than that.
• Insurance – Most business owners don't really have a relationship with their insurance agent.  You should review what is necessary in your policy, consider raising your premiums, and don’t be afraid to shop with an independent agent that you have made a relationship with.

  
   2.  Get more business with relationship marketing.

• Partner with another business, in a different industry that has similar customers and send each other referrals.
• Call existing clients and ask for more work or referrals.
• Offer to do any type of speech or seminar on a specific topic (not a sales pitch) for free.
• If you are networking and prospecting, do it several times a month.  Not once in a while, as you have time.  Also, make it a point to identify other people you want to work with and give them a reason to want to work with you.  

 
   3.  Sell old assets quickly to raise capital using existing relationships.         

• Do you have an old piece of equipment just laying around, not generating revenue?  Sell itto another business that you have gotten to know. And you should check with your accountant before selling anything.  Let's hope you have a good relationship with her;)