Keys to Building a Business Relationship
I’m involved in a few different networking groups here on Oahu and it’s exciting to see so many other entrepreneurs out there in our Hawaiian Islands. However, whether you run your own company or are employed, building a business relationship that furthers multiple objectives and withstands the test of time is often easier said than done. By no means is this an exhaustive list, but here are some of my own key principles that I’ve learned and use in real estate investing to build solid mutually beneficial partnerships with others for long-term prosperity.
1. The Magic of Reese’s Cups
I put this one right at the top for a good reason. I remember a meeting with someone not too long ago where it became evident that this person was more interested in taking information from me than sharing information between us. A solid business relationship goes both ways. Hopefully you’re meeting with a potential business partner or colleague because there are assets or ideas that you can both bring to the table and that will improve both parties’ endeavors. Your chocolate, their peanut butter – we all win. No one expects you to open up your entire treasure chest of trade secrets, but at least be willing to meet your colleague halfway and show you’re truly invested in the relationship.
2. Be a Giver First
One of the best friends I’ve ever had was a living example of this. Wherever he went, he gave first and in return, people always gave to him. The same tenet applies in business. We all want to get ahead in business and it’s easy to sit across from someone and think “How can this person help me? How can they help me increase sales, marketing or funding?” However, such thinking is doomed from the start. Have you ever sat down for coffee with someone like this and you just felt them sucking the energy out of you, leaving you wondering if they cared about you at all? Yup, it’s obvious when it’s happening.
However, think about people who have helped you out without asking for anything in return — providing business contacts, potential leads, tips on marketing strategies, etc. Haven’t those memories stuck around longer? Wouldn’t it make you happy to return the favor someday? What if that was YOU, being the giver? Even if it doesn’t come back to you directly, you’ll have hopefully helped build the larger business community around you. One way or another, you’ll win.
3. Let Go of Business Talk
It doesn’t matter what business you’re in, you can’t talk about it all the time. I’m pretty sure my friends don’t always want to hear me talk about flipping houses, private lending or wholesaling condos! I get excited about my real estate business and can talk a mile a minute (ask anyone!), but there’s a time and place to let it go. To really build a long-term business relationship, learn about your contact outside of normal business hours or business environments. What’s their family like? Hobbies? Recent travels? Favorite movie quotes?? What if they asked you about your holiday plans? That simple question undoubtedly makes you feel good, so wouldn’t it do the same for them?
It stands to reason that we all prefer to do business with people we like — and I don’t mean the Facebook kind of ‘Like’. So break the ice and actually learn to like the person seated across from you! I have certain realtors here in Honolulu that I genuinely like as people and friends, in addition to considering them very good realtors. Who do you think will get my referrals? Yup. Let the person behind the business card come out.
Like I said, this could go 100 items long, but it’s late at night and I need my sleep!
What would you add to the list? What’s worked for you?
Brett says
Hey Mike, nice post. I’ve found that an open and honest discussion about what you’re both hoping to gain from the relationship is beneficial. Certainly, a formal agreement detailing each parties rights and responsibilities is the best way to address — and avoid — potential disputes. But, even for more casual relationships, making your intentions clear up front helps to manage expectations. Each party can weigh the value of the relationship and decide how much to invest in it.
Keep it up!
Michael Borger says
Thanks for writing in, Brett. You’re absolutely correct. I don’t like having to ‘read’ another person’s intentions – being open is a great policy and allows the parties to get past any games and really start building productive relationships. It admittedly gets a bit tricky when someone is in your same industry and could be both colleague and competitor, but such is the name of the game. In the end, those who have the vision to see greater things ahead through collaboration are bound to achieve such goals, leaving the more narrow-minded folks behind.
Great post. I find my best business relationships are those in which both parties follow up on commitments an do what they say they will. Meeting expectations and keeping promises are key. Exceeding expectations is even better!
Agreed, Terri – accountability is HUGE for me as well. Unfortunately, doing what you say you’re going to do is, in my eyes, becoming an increasingly rare trait. However, those that do stand head and shoulders above their peers!