Small businesses can often fall into the trap of trying to be everything to everybody, offering a wide variety of services to generate more income instead of making a point to focus on their specialty. There are also times, despite their desire to take on a new account, they simply can’t meet the full requirements of the job whether it’s due to a lack of staff, expertise or the right equipment. If clients request work that your company does not have the experience or capability to execute, you are faced with the option of declining the job entirely and losing out or referring the job to a trusted partner. Here are some ways that referring clients to other businesses will actually help you grow.
Building Your Reputation Through Association
As a small or medium business it can be difficult to get your name out there and known. By partnering with (or referring to) larger, well-known companies you are helping to get your name out (to those companies) while also boosting your own reputation and image at the same time in the eyes of your client through association with them. If larger companies know about your business they may be able to mutually refer business back to you if a new job doesn’t meet their onboarding criteria, aka: if it’s too small or outside of their core competencies. Contracting with a high-quality partner that has an excellent and established reputation means that you should be able to trust that their work will be excellent and boost your business’ reputation as well.This will not only help you to secure more clients, but also allow you to work with clients that have more diverse needs than you can service alone.
Taking Customer Service To The Next Level
If you are contracted to a specific location to deal with a specific job, say window cleaning, your client may want to contract you for other jobs as well such as the cleaning of solar panels. While they may seem similar to the client, they require different knowledge to be done correctly – which you may not have. Partnering with other companies who offer complementary services that you can’t offer may save you from losing clients who wish to go with someone else who can do it all. Appearing so accommodating to the customer will also help garner loyalty as they know that you are providing great support when needed. This kind of service goes a long way and people are more inclined to stick with the companies who are willing to do everything possible to make their lives easier.
Servicing A Larger Area
Most small businesses keep their service radiuses to about a 50 to 100 km span. There may be times that business comes your way, perhaps in the form of a client with multiple locations, when you can’t fulfill their request. In addition, depending on how many employees you have available, you may be forced to decline contracts from time to time on account of limited resources. Partnering with a bigger company can vastly extend the ground you’re able to cover and allow you to offer services more expansively. This is a great way to grow your own accounts as it provides infrastructure to support you. Collecting a commission and building a client relationship makes much more sense than turning business away due to size or distance. It also keeps lines of communication open in the event that this client will refer your company to another more local business.
Expensive Equipment Doesn’t Need To Be A Barrier To Entry
Not only can the amount of equipment needed for certain jobs be an issue, but also the type and quality of it as well. You may have the workforce available to you but they do not have and are not trained on the equipment required to get the job done. For example, many residential cleaning companies simply do not have the tools required to service high-rise commercial buildings. Likewise, contracting companies have all of the tools they need for the build but when it comes to clean-up they usually contract out. If you’re faced with a lead for a job you are not prepared for, there is no reason you can’t take advantage of a great referral commission. Depending on the company you refer to you may even be able to negotiate recurring revenue for as long as the client stays with their company. You may be faced with a situation where a client of yours manages detached housing complexes as well as high-rises. Having more resources available to you can help you land more complex jobs you would otherwise need to turn away.
Generate Passive Income
Referring to bigger companies can help maintain your client base while also generating extra cash flow for your company through the commission of the referral. Generating passive income can be supportive in many ways and provide you the freedom to invest more aggressively in your own business development.
In the end growing your business is all about forming the right relationships and nurturing them. Getting in touch with the right partners who can help you grow is an excellent way to develop your offering as well as exposure.