Many entrepreneurs believe that they can grow their brands simply by having a good product or an awesome marketing strategy. But, according to entrepreneur and New York Times best-selling author Randy Garn, a good growth strategy needs much more than that. The true key to a successful business is building strong relationships, both personal and professional.
As a successful business coach, Garn advocates for this type of investment in something he calls relationship capital. Relationship capital is what you gain (a new type of currency) by connecting with others in your industry and other sectors. When speaking of the value of relationship capital, Randy said: “Not enough people comprehend why relationships are vital to business, possible because relationships are intangible and hard to quantify. But these connections we create are the building blocks for a thriving business.” When entrepreneurs network properly, they can connect with helpful people. These people might be future business partners, collaborators, or investors. Over time, these relationships help your business grow and succeed.
Too many businesses put blinders on, focusing solely on their bottom line, feeling like this is tangible evidence of your success. And, even though your revenue presents itself as a quantifiable number, the things that affect it do not. “Your profit isn’t just determined by efficiency, income, and cutting costs,” says Garn. “It is about creating meaningful relationships. Creating customer loyalty because you created a great customer experience or receiving a discount on supplies because you made a meaningful connection with your vendor. When it comes to good business,” says Garn, “you cannot undervalue the relationships you form in the workplace. Over time, forming good relationships becomes second nature, and the return on those relationships is meaningful and bottom-line boosting.” In the early days of your business, new entrepreneurs should devote special attention to building relationships. He even recommends that you make it part of your business strategy or mission statement.
But Garn says that it isn’t only professional relationships that matter; personal ones do too. “It’s important to be around folks who support you,” says Garn. “Select your friends fastidiously, and work for your family’s support.” According to Garn, these relationships are always important. This advice is especially significant for new or blossoming entrepreneurs. Negative influences from your personal realm can squash your business before it ever has a chance to take off.
As any veteran entrepreneur knows, there are a lot of ways to grow your business. But the principal building blocks to brand growth are these personal and professional relationships. Once you get these sorted, there is no limit to what you can achieve.