Conveying credibilty

The key benefit of associations is encompassed in the simple message, “Together we can do more”. There are many worthy things one might need or want, but which are just not feasible for a single small business.

Some traders’ associations organise joint promotions of their shopping strips; some go to such lengths as St Albans trader’s Association which organises major events. Many lobby their councils for support for practical solutions to problems, for example, changes in opening hours and the traffic flow.

More visionary associations organise businesses and local communities in a joint effort to bring about change. Some, for example, might decide to solve an ongoing parking problem by the joint purchase of a run-down shop and converting it into a two-storey parking lot.

Some, like St Albans, lobby for major redevelopments such as pushing a railway station underground. Others, identify safety as a problem and organise joint patrols of hire security services.

Chambers and traders’ associations can stimulate creation of buyer’s groups: 10, 20 or, even better, 500 businesses combining their purchases of utilities or petrol, for example, can achieve significant savings.

Joint projects and joint ventures can be created quicker and more easily, if organised within a group of local businesses. Put simply; every business has its periods of cash shortage and periods when they would be happy to invest. What is beyond the reach of one business may be possible as a joint project.

For example, just a few months ago, a local printer was looking for partners for a joint development in the rapidly growing airport area. The idea died because chasing potential partners was too time-consuming. But this could be a different story within a well organised group.

Pooled Investment Funds are yet another possibility. While Pooled Investment Funds legislation provides tax advantages, knowledge of local conditions can help identify great local companies worth investing in.

Networking is invariably recommended as the most effective way of selling your products and services. Clearly it is one of the quickest, cheapest and most successful ways to sell products, especially those like business services, naturopathy, design and so on.

The story, however, does not end here. The benefits of buying within the network are perhaps even more important. For example, you may have problems with unreliable suppliers. You do all the work, attract the client’s attention, close a deal, and you would have completed the job, if not for some elements that have been outsourced.

When the suppliers fail to deliver you lose at both ends: not only you have spent time and money organising the service, but you also have to deal with the angry customer.

Let’s face it, everyone makes mistakes. The question is how we deal with them. Being a part of local business association gives you a strong motivation to fix any oversights. If you are in a network and you do a bad job with one person then you have destroyed your reputation within the whole group: just like in a village.

Another benefit of being in a business network is information. Recently one of our members, a successful businessman and owner of a wholesaling business acquired a highly sophisticated IT system from overseas. The system was expensive, but the benefits were expected to be much higher. However adapting it to Australian conditions meant additional costs. The worst thing was it caused significant disruption to his business.

For him much of this could have been avoided if he could have approached someone in a similar business to recommend a reliable supplier.

Opportunities are endless. What you need is ideas and the willingness to implement them. So, why don’t you join your local business association or if you don’t have one, why not create one?