Reports of a still struggling economy from The Institute of Economic Research are a timely warning that small and medium businesses must look to alternatives – such as forming referral hubs – if they want to emerge from the recession on a good footing.
The institute’s report of struggling SME’s should come as no surprise to most BNI members and the advice is not to relax efforts in the expectation of boom times ahead.
Most BNI members have done well through the recession by forming business hubs with other complementary businesses, to help generate referral business for each other, and they should continue to do so.
It’s the old village concept, but it works as well as it ever did.
In Wanganui for example, an architectural designer has in his chapter a number of allied industry business owners in his field to help find business for each other. It’s a concept we have within our networking groups – called chapters – but one that works equally well for any business.
Wanganui’s Paul Harrison, of McGowan & Harrison architectural designers, said referrals by word of mouth was what the company did naturally anyway, but actually being part of a business hub took the concept to a new level.
Having a builder, painter and interior designer in the chapter meant that people in the industry were looking out for opportunities for me, and that became increasingly important as the building industry slowed down.
Hubs are a good strategy for getting through the recession, and even after the recovery. The alternative is to remain limited to your own sphere of influence,” he said.
A good way to form a business hub was to identify your company’s best customers and then figure out who their other suppliers are.
Approach those complementary suppliers and form a referral hub because they share the same target market as you.
