Building Business Relationships

Gerry Raker

It’s probably safe to say the global economic downturn of the past few years and the horticultural industry shake-up that it spawned put Raker in the same leaky profitability boat that many of you were sailing. As we worked to cut costs and shore up profitability, we were constantly trying to evaluate what it was that was most important. What really mattered anyhow? Best products, best quality, best practices, best price—it didn’t seem like any of them could staunch the profitability leaks enough so that we could quit bailing water and get headed back upstream. In the end, we decided the best thing we could do in the midst of all of the turmoil was to do as we have always done and put our best effort towards taking care of our relationships. Internally and externally, vendor and distributor, employee and customer, banker and broker.

Here are some of the things Raker has learned over the years about developing relationships:

Relationships are two-way streets. They’re developed through communication and built on respect. Successful marriages are good examples of how this works. Marriage is personal, but the concept applies to business relationships all the same. It all seems obvious, but the divorce rate tells you that relationships are easier to talk about than to accomplish.

Communication hasn’t occurred until there’s agreement about what’s been said. Also, communication is as much about listening as speaking. It’s important to get positive feedback that what you’re saying is being understood. A good listener will ask questions to validate that what they’re understanding is the same as what’s being said. If the listener doesn’t ask questions, a good speaker will ask the listener to reiterate what was said to make sure that they’ve been understood.

George Bernard Shaw has been credited with pointing out that, “The single biggest problem in communication is the illusion that it has taken place.”

Respect isn’t obtainable until the right to differ is acknowledged. Respecting the positions of others is the foundation for building trust. It cannot be that “my way” is right and therefore “other ways” are wrong. Power struggles drain energy and will negate any chance of building a successful relationship. Differences of opinion need to be acknowledged and understood in order to enable negotiation.

Once a person and their ideas are accepted for who/what they are, conversation begins to take place inside a new framework. Cooperation and compromise are suddenly possible. Trust will lead to a willingness to be open to new ideas.

Once a clear vision of what needs to be accomplished is communicated and agreed on, win/win planning and negotiation can begin. Be prepared to make an offer before you ask for something. If the stage has been set properly and everybody’s reading from the same script, a meaningful offer will open the door to building a long-lasting relationship even if the discussion ends up going in another direction.

Reputation is paramount. Promises must be kept. There’s no option to continuous improvement. If you continuously and consistently build relationships, you’ll develop a reputation of being trustworthy and experienced, but you have to deliver on your promises or you’ll lose credibility. Getting better at what you do has to be an everyday effort.

In the end, developing a successful business relationship is really about foregoing some of your own interests to take a stake in your business partner’s enterprise. Once your effort is recognized, your business partner will trust you and begin to rely on your business. Be attentive and stay committed. Good things will come your way. GT

Gerry Raker is the business team leader and owner of C. Raker and Sons, Litchfield, Michigan.