Business Networks and Support
Last time, I discussed how self-employed people bring new ideas and financial gains to the local economy. Another way self-employed people contribute to their local economy is through business networks and employment.
Types of Collaboration
Not all self-employed people have a collaborative mindset. Some believe in competition and so frame themselves as hard-headed business people. They find others in similar fields threatening and do not consider collaboration.
In the past, a beached whale was an opportunity for the whole community, to share the spoils of nature! WikimediaImages / Pixabay
This is a pity because few businesses work without collaboration. The business that collaborates is likely to do better. There are several types of collaboration:
- Similar businesses working together to provide services to larger clients. The image of dividing the carcass of a beached whale springs to mind.
- Different but complementary businesses can also collaborate delivering services to larger clients. A high-end coaching offer could be a few coaches providing a range of support together, for example.
- Businesses can collaborate on R&D but compete through marketing.
- Purchasing from suppliers is a form of collaboration. Where there is dialogue, the supplier can learn more of their final market through their clients.
- Mutual support through exchange of services.
- Sharing of resources, eg premises.
Networks
Most of those bullets describe networks and mapping local economies builds a picture of a network of businesses. In addition there are intentional networks of businesses, which open up opportunities for referral marketing.
Networks are a marketing concept; they rely on your ability to describe your business and to refer other businesses to potential clients. There is a lot to doing this well and many business owners don’t get it.
The people in the room are not usually potential clients but they may know people who are. There is an art to making a good referral and it is worth learning the art.
Support
Many business owners are generous with their time and willing to support other businesses. Traders do this through local traders associations. Local associations work because collaborating local businesses, are likely to increase footfall and other opportunities to do business.
Mentoring is one example of such support and can be informal or formal. Other businesses may share skills, products or services. Informal exchanges of goods or services can help businesses in a local area with what they need for survival.
A great deal of this is informal and takes place under the radar.
Are you aware of example of local informal collaboration?