How Personal Relationships Contribute to Business Development 0

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How Personal Relationships Contribute to Business Development

Business schools, various gurus, and opinion leaders constantly emphasize how important investments, technology, sound financial and personnel management, strategy, and many other factors taught in business schools are for business development.

However, one factor that plays a huge role in shaping a business is often overlooked — personal relationships, says Lasma Orvida, project manager at Ekobaze Latvija.

Latvia is a small country where almost everyone working in the same industry knows each other. Therefore, human contacts are very important. My daily work involves organizing the removal of construction waste and constant communication with people. Of course, for builders, the price at which waste can be removed is important, but equally important is that on the other side is a familiar person with whom it is easy and convenient to communicate.

The workday of a construction site manager is very intense and consists of solving one problem after another. Therefore, simple and energy-efficient forms of communication are highly valued — the ability to just call or even write in the WhatsApp messenger, which, to be honest, is the most important tool in my daily work.

If the foreman has time to sit down calmly, compare prices and parameters of offers — he does it. But in many cases, the choice is based on previous experiences of cooperation and the associated positive or negative emotions. Feedback about pleasant or, conversely, unsuccessful cooperation is passed on in personal conversations with other colleagues, and thus a positive or negative reputation spreads. Therefore, personal relationships and emotionally comfortable communication with the client are and will be of immense importance for Latvian business.

Moreover, since the second most important factor in choosing a service remains costs, it is easier for constant and well-known clients to offer the most favorable conditions.

What contributes to forming a positive impression of cooperation in the client, which he will be ready to share with others, promoting "word of mouth"? Quick and accurate communication over the phone or in messengers, clear answers instead of "Wait, we will call you back." If the builder knows that sand or concrete blocks will be delivered today, but there is a container with waste at the construction site blocking the unloading — a quick and precise response from the service company is extremely important.

It is this promptness and ability to respond to the situation that form the basis of a sustainable reputation for years to come. The ability to rely on a quick response and the company's willingness to meet the client's needs is a powerful argument in its favor and when choosing in the future.

There is another, less obvious factor that ensures quick communication and response — a simple management structure of the company, where project managers working with clients have enough authority to make decisions. If a decision needs to be agreed upon with three bosses or wait for the next board meeting, one cannot expect an operational response in critical situations. Therefore, the company's management structure plays an unexpectedly important role in shaping its reputation and maintaining strong business relationships.

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