It's Not Just the Figures That Keep a Business Ticking
By Graham Nicoll: Chairman of Birmingham Forward and Regional Director for Barclays Wealth
The economic downturn (and upturn) has got me thinking of late. Leaving aside all the negative connotations, there is certainly a positive element with the recession having the effect of taking businesses back to basics when it comes to relationships. Perhaps due to a lack of activity in certain sectors, people have focused their efforts into giving business to people they respect, trust and like as opposed to the firm with the cheapest quote.
I used to be a managing director in the physiotherapy division of a venture capitalist backed business. I remember my CEO at the time saying to me – “to be successful, the Physios’ don’t need to like you, they need to respect you.” At the time, I thought this seemed like pretty shrewd advice. In hindsight, I’ve learned that being liked, respected and trusted by your team and business contacts is preferable to just being respected.
Those ahead of the curve are spending time developing their networks now, safe in the knowledge that their ground work will pay dividends in the future. Rather than waiting on new deals to flood through the door, companies in the business and professional services community have been partnering with other firms to solve more intricate client needs. These relationships pay off when faced with economic uncertainly.
In a recent report, the Centre for Cities criticised Birmingham for not being prepared when the recession hit. Essentially, any city that has manufacturing embedded in its DNA will take time to adapt, in part due to the massive cost involved with re-building its infrastructure, investing in new technologies and changing the mindset of its workforce. Birmingham has, however, got to take this feedback on board. We started this transition over the last decade with an increase in our service sector, a dramatic uplift in the creative industries and the evolution of niche manufacturing.
There is still, however, much more to do. A city that has greater diversity within its business sectors, a strong community spirit and a belief in what it stands for will be in a stronger position to work through the challenging times that we inevitably face.
We need strong leadership in both the public and private sector to ensure the momentum required to work through this transition is built and maintained. I believe that some people and some firms will have nurtured far stronger working relationships because of the challenging economic environment and that these will be the people and businesses that will prosper as we come out of recession.
For SMEs, the benefits are threefold; A stronger community, more new business activity and a larger sphere of influence. The message? Close the computer, pick up the phone and get talking to people - it really will impact your business.
