Understanding the Art of Relationship Brokering
Small to Medium Exnteprises (SMEs) are the fulcrum of our economic engine; not only in South African but across the African continent. In South Africa, they provide employment to about 60% of our labour force and they plug-in various gaps in a number of industry value chains, facilitating the effective running of said industries.
Equally important, SMEs are, as South African Reserve Bank Deputy Governor, Francois Groepe asserts, “an essential conduit whereby millions of people enter the economic and social mainstream of a society.” Through small businesses, the everyman has relatively unfettered access to an otherwise cryptic and many a time, exclusive realm. At a time when our economy needs us all to pull and push together, they present an effective pathway to economic inclusion.
With this in mind, supporting small businesses could not be more urgent. In South Africa, SMEs make up 91% of formalized businesses and are responsible for 34% of our GDP. These are huge numbers that can be bigger the more support there is for SMEs. We need platforms that facilitate entrepreneurship and small business growth, like the Small Business Expo which is the evolution of 20 years of Reed Exhibitions’ dedication to entrepreneurship. The exhibition, focuses on facilitating relationship brokering between small business owners, entrepreneurs, investors, franchisors, corporate leaders and business hubs and incubators. Through effective relationship brokering, small business owners connect and support each other, and grow their establishments. Here are seven tips on negotiating relationships in the business landscape:
- Know your own story, and know it well. Sharing your story – whether it’s your business proposition, your skill set or a project you are working on – is a determinant of successful relationship brokering. You have to know your story, and know it well enough to share it in a compelling manner. Your story is part of the collateral you leave any prospective business connections.
- Relationship brokering builds social capital – your own and the social capital of those around you. It’s a process that, when done right, builds your influence and profiles your authority. Not only do you get a chance for people to know you, but also for people to get to know what you do and the pedigree you possess as a business owner, entrepreneur or professional. You position yourself, on an uninterrupted stage that is formal yet relaxed and personal.
- Relationship brokering is about building sustainable communities of people and businesses that complement each other. It’s about fostering collaboration where synergies exist and enabling connections where business opportunities exist. Beyond that, a successfully built community becomes the support structure to members of its network.
- Build and maintain bridges. Don’t put yourself first. Pay attention to your business associates and connections. Ascertain their needs and assist them in addressing those needs. During that process, you profile your own skill set and showcase what you and your business can do. This is important as relationship brokering is only self-serving to a point. If it becomes a one-way street, connections crumble because no one wants to be involved in a one-way relationship.
- Relationship brokering facilitates sharing. Relationships are about mutual value and this mutual value is not only monetary but also about shared objectives, visions and ambitions. This connection must allow parties to draw value strategically for the outcome of a business endeavor or opportunity. The shared value can include knowledge, skills transference or specialist experience – whatever the attribute, achieving mutual value is the objective of the relationship.
- Quality trumps quantity. Relationship brokering is not a business card collection contest after all. Focus on those businesses and personalities who are stakeholders in your industry’s value chain. Always remember that one quality business relationship surpasses a rolodex of business cards who have no link to your work or industry.
- Do follow up. Do reach out. Many of us do more than enough sharing of contact details but not enough following up and reaching out. Follow up to legitimize the connection and start building a relationship.