How to Nurture Relationships and Creatively Expand Your Business This Summer
Summertime is usually a slow season for business owners, but that doesn’t mean business relationship building isn’t important. It’s actually even more important! It’s easy to turn your nose up at the thought of networking while everyone else around you seems to be taking a break, but when you understand why it’s so important to nurture relationships as a business owner, I think you’ll feel a little differently.
Building strategic relationships with retailers, suppliers, co-packers, and raw material vendors is crucial for businesses in the consumer-packaged goods (CPG) space for many reasons:
You’ll enjoy happier, more mutually beneficial working relationships.
You’ll collaborate more efficiently.
You’ll have a network of contacts more willing to offer solutions and be flexible in challenging situations.
You’ll gain greater reach and even referral power.
Sure, the term “business relationship building” may trigger thoughts of happy hours, trade shows, and “rubbing elbows.” But really, it’s much more about being a good business partner to the people who help you get your product in your customers’ hands.
The Importance of Business Relationship Building
These days, e-commerce and CPG brands are all too familiar with having out-of-stock products. Unfortunately, supply chain and logistical issues will continue to be a concern for business owners around the world. Even if you aren’t a business owner, I’m sure you’ve noticed empty shelves, gaps in the supply chain, and more and more products out of stock in stores. A quick walk through any grocery store shows you exactly how real the supply chain struggles are.
This is undeniably a major issue for large businesses with overseas operations, but it’s also a great opportunity for smaller, local businesses to fill gaps and claim some much-needed (and much-deserved) shelf space.
Here’s an example: With inflation so high and everyone talking about the possibility of a recession, people aren’t going out to eat. Restaurant Business Online found “more than 80% of U.S. consumers said they are eating out less often as a result of inflation.” What are they doing instead? They're cooking at home, of course! And that means they’re spending more time at grocery stores shopping for ingredients.
If you want to stay top of mind and be the first person local buyers and retailers think of when they need to fill gaps on their shelves, you have to develop and nurture relationships. You make more money, they make money while giving customers alternatives instead of out-of-stocks. It’s a win-win!
How to Nurture Relationships
Nurturing business relationships isn’t exactly difficult, but it does require preparation and strategy. You have to be intentional about it. Here are some effective ways to build and nurture your business relationships:
Attend local events in your industry
Keep in touch and add value to the other party
Be authentic and share personal anecdotes. Get to know them outside of their job role.
Be kind, understanding, and patient with suppliers
This might sound obvious, I know, but business relationship building can easily slip through the cracks in the slow (and busy) seasons. It might seem like a lot of work, but if the backend of your business is functioning properly with streamlined automations and SOPs, you can spend more time nurturing your relationships face-to-face.
Tips to Expand into Additional Local Retailers
Looking to expand into more local retailers this summer? Here are a few tips to help CPG businesses get their products on shelves.
Keep your professional sell sheets and product info together
CPG business owners have to know their products inside and out – and be ready to share that information with retailers at a moment’s notice. If a retailer is interested in partnering with you, you have to give them everything they need to close the deal.
Know your data like the back of your hand
Retailers want to know how your business is performing. Will your product move – or just sit on the shelves? Regularly analyze your metrics so you know where your business has been successful and can identify any areas of opportunity. If you need more information about gathering metrics as an e-commerce or CPG business, check out this blog.
Prep your team in advance
You probably won’t be the only person on your team contacting retailers unless you’re working solo. Your team is a direct reflection of you and your business, so they have to be prepared. Practice pitches together so your team is familiar with your products, sales, and data points. Think of it this way: If your car breaks down or you have a family emergency, you should feel confident sending your team to a pitch in your place, and they should be able to represent the business like it’s their own.
Nurture business relationships
You saw this one coming, right? Word-of-mouth is one of the most powerful forms of marketing. When you nurture relationships and prove that you’re a great business partner, retailers are more likely to recommend you to other retailers. Continue cultivating those relationships throughout the year (new and existing ones), not just when you need something from them!
You might be in a slow season right now, but one thing that shouldn’t slow down is your business relationship building. Nurturing relationships will help your business grow and expand, but you don’t have to tackle it alone – I’ve got you covered!
If you need help building a solid strategy to nurture business relationships and scale your business, I’m your sidekick. Schedule a call today!