Before looking at this ask yourself a question- who are my business partners? Are they suppliers, customers, an investor in my business, or the shops who sell my goods or services?

It is important from the outset to understand who or what a business partner is; I prefer to broaden the definition out further to stakeholders in your business- those people and groups that effect, or can be effected by, your business’s decisions, policies or operations. There are two types of stakeholders:

Primary Stakeholders

Directly affected by a decision the business makes- these include customers, employees, creditors, suppliers, stockholders and banks.

Secondary Stakeholders

Indirectly affected by a decision the business makes- including the general public, employees’ families, local and national government, local communities and the media.

With this definition we are looking at a whole new ballgame- EVERYBODY IS (or has the potential to be) a business partner!- Each partner needs a different but equally important set of criteria when choosing him/her. While I cannot cover all areas in this article bear in mind the following:

Networks

A friend of mine who opened a pub recently gave me some great advice; before spending any money look at your own network for expertise. His wife is an accountant- she does his books, his brother, a printer- does all of his promotional material, another brother runs the pub with him (reducing staff costs..). Do you have this type of expertise within your network which can cut costs? This can be expanded out to business networks, and don’t forget your Chamber of Commerce!

Strategic Alliances

A client of mine was recently put under severe pressure from one of their “partners” a supplier, to

purchase stock in order to maintain their agency. This is not partnership, and the net effect is that my client has excess stock and an overdrawn bank account! A better approach for the supplier would be to build and enhance the relationship with my client in order that they recommend the supplier’s product every time- this is building long term repeat business instead of quick, once off sales. Look to suppliers and retailers who show a genuine interest in your product/service and display a partnership approach which will be mutually beneficial.

Professionals

As an entrepreneur you can do your accounts yourself, you can design your website, you can run your social media output if you so decide. However, if you are not proficient in any of these areas it makes sense to seek professional help. For example, if you are putting aside 5 hours each week to do your VAT returns can your time be better spent prospecting and getting in new business? If the answer is yes- it may make sense to seek the services of an accountant to complete these returns. For a small weekly fee you no longer have to do a task that you hate- and also use your time more effectively and profitably!!