(Business) Relationship Bootcamp

Post-pandemic, many small businesses are still reeling from the effects of isolation, shortages, and inflation. Early studies suggest interpersonal skills have declined for Americans in the wake of COVID-19. Today’s climate is heavy for various reasons, and as a result, many business and personal relationships are suffering under that weight. But even if your small business faces challenges outside its control, this doesn’t mean you can’t take control of building and strengthening your business relationships – and as any good business owner will tell you - business is all about relationships.  As we celebrate Valentine’s Day, love your business by exploring ways to strengthen business partnerships and relationships.

First Date – Business Formation

Just as you wouldn’t swipe right without reading a dating profile, careful consideration of business partners can make or break the success of a partnership. Many presume a common goal or complementary skill sets will make for good partners, but a business partnership is much more and can be as delicate as any romantic relationship. Remember these important steps for ensuring strong business partner relationships:

• Clearly define each partner’s role and responsibilities and revisit this over time – what makes sense in the beginning may change over the life of the partnership
• Determine how decisions will be made (e.g., vote)
• Determine how disagreements will be handled
• Determine how profits are divided
• Determine the percentage of ownership for each partner (e.g., 50/50 or 56/44)
• Determine buyout procedures or dissolution practices in the event of death or split
• Determine procedures for addressing disputes and deadlock - this is critical in 50/50 partnerships.

Honeymoon Stage – Engaging with Your Business Ecosystem

A business ecosystem includes your suppliers, distributors, and even your competition. Here are some basic principles for maintaining a healthy business ecosystem:

• Consider engaging with a diverse range of contacts. Is a major supplier going out of business? Keeping a broad list of contacts can help avoid foreseeable pitfalls.
• Use Artificial Intelligence (AI) and Data to your advantage. Spending time analyzing sales data, purchase data, and reviews can help save time and money. AI tools can further help manage data and can even make projections for sales or “what if” scenarios.
• Networking and attending conferences, trade shows, or events can help directly advertise your business to members of your ecosystem. There may even be a local association or special interest group for your small business to join. 

Keeping Things Interesting – Gaining and Retaining Clients

Everyone knows the customer isn’t always right, but establishing a connection with consumers of your product or patrons of your service can help increase business. Here are some ways to connect with clients:

• A social media page can engage customers or clients. An active online presence can make way for positive reviews and increased business. Even negative reviews can help small companies to improve and identify areas where they fall short.
• Increasing ways to communicate with clients, vendors, or patrons can help your business mitigate mishaps. For instance, drafting a detailed return policy can help businesses make matters right with customers while also protecting the business from fraud and other damages.
• Consider establishing a mailing list or building a phone app if you don’t already have one. The more ways to communicate, the better.
• Send out periodic surveys to understand your client’s pain points or how they rate your goods and services.

When things go wrong in any of your business relationships, seek legal counsel. Whether you need assistance forming or dissolving a small business or with policies or legal matters for an existing business, please contact us at 202-505-5309 or info@thesjslawfirm.com to book a consultation.