|
|
Entrepreneurs may be
their worst enemies. Along with their persistence , self-confidence
and determination to succeed, entrepreneurs have a strong desire to
be self -reliant that's why they establish their businesses in the
first place. " New business can be reluctant to work with others ,"
says David Jackson , general manager and executive director of the
London Community Small business Centre. " They want to succeeds on
their own .' But working together with other businesses is one of
the keys to achieving growth in a small companies whose resources
and time are stretched to the limit. Increasingly, these small
companies consist of a sole proprietor. According to Statistics
Canada, 90 per cent of the growth in self-employment this decade has
come from entrepreneurs who work alone.
Self employed Canadians
now account for 18 per cent of all workers, 50 per cent more than 20
years ago. " the vast majority of start- up entrepreneurs come from
a specialized field," says Jackson. " He or she might be a great
marketing person but lacks skills in operations or finance., There
is a need to strike alliances with people with complementary
skills," he says. Co-venturing may be part of the solution, says a
University of Western Ontario professor.
" You need to ask
yourself, 'what are the resources that I have in my business to
successful ? " How can I complement these resources by co-venturing
with someone ? Is that a viable strategy for my business?" says John
Eggers, associate professor of entrepreneur ay UWO's Richard Ivey
School or Business. Small - business would rely on others while it
was still in the planning stages. His London - based company,
information on hold , designs , produces and install phone messaging
systems for businesses to relay to customers when they are put " on
hold ." " I always intended to contract out in installation of the
messaging systems, " says Payne. " It's a natural extension of what
we're doing new. It's so important for small businesses to work
together because you can become so much more effective. There is no
way I could implement my business plan entirely on my own. It's nice
to be able to spread the load with people I can trust ." Working on
joint projects such as Payne's messaging system requires commitment
and flexibility from each of the businesses involved. " When you're
contracting parts of your business out, time-management can be a
challenge," says Payne. once customers purchase a messaging system
package he adds, they generally want it installed right away.
Because each business associated with Information On- Hold operates
independently, inevitably there is some schedule juggling to be done
. " but we all work well together says Payne "it's a very symbiotic
relationship." Solid relationships with complementary businesses
form the cornerstone of local business person Nancy Bangbol's
successful interior decorating company , Christopher Bradley
Interior Decorating Brokers. Initially , business was built on the
concept of a "pocket planner," a pursed sized wallet containing
floor plan, paint chips and carpet, fabric and wallpaper samples for
homeowners to consult when they venture out to purchase all the
elements of their new room. What has catapulted her business forward
, however , has been the inclusion of a directory. Clients
appreciate Bangsboll's list of personally screened trades people and
retailers. " I want to make sure the client has a good experience.
This directory is as much about the personality of the people listed
in it as it is about good they are at what they do," says Nancy "
There is no fee for being listed in the directory and none of us
receive commission for referrals. The payment is the relationship we
have. One doesn't succeed in isolation from the rest. I send work
their way because I believe they're the right people for my clients,
and I get business back from them because they trust me as much as I
trust them .' Although each member of the group operates
independendently and there are no excllusitivity clauses, the
referrals that bounce back and forth increase each business's client
base at a faster rate than they could achieve on their own the
success of this approach has led Nancy and her colleagues to a new
venture in collaboration. Last week Christopher Bradley Interior
Decorating Broker , in partnership with Schueneman's ( a furniture
manufacturer and upholsterer) and R. Linton Kitchen Designer opened
the doors to the Hyde Park Design Centre, A client showroom in Hyde
Park. Local contractor Arne Madsen also is involved. The Design
Centre, will provide existing clients with a convenient location to
meet with the people they have hired to decorate or renovate their
homes.
" Clients will come will come by appointment to discuss
their project ," explains Nancy " Everything from artificial
greenery , flooring , window coverings, , custom furniture selection
and design , to fabric samples and paint chips will be on hand, but
it is reserved for our clients. It's not intended to be a retail
showroom."
The three tenants share the major costs associated
with the showroom while a number of businesses from Christopher
Bradley's directory pay a fee to display samples of their products
and services.
"To my knowledge, this concept does not exist
anywhere else in London," says Nancy " Small businesses need to work
together ." she adds. It doesn't make sense to do it any other way.
When you find people who work the way you do and treat their clients
the way you do, how can you possibly fail?" The venture is a good
example of using alliance s to share resources and as way of
lowering costs in a non-competing manner, says Eggers.
"Typically, this is the most successful way alliances are formed
. In my experience , it's unusual to see people in directly
competing business banding together . One of the ground rules seems
to be that participants are ether in different businesses or at
least operating in different markets."
there are always
exceptions to a rule. Three local restaurateurs, considered to be in
direct compaction with each other band together to stage a series of
culinary events.
Bryan Lavery of Murano, Alessandro Malnati of
Home Restaurant and Fernanada Cerone of Mangia Mania not only
planned and ran the themed events as a team, they worked side by
side as they created the dishes in each others kitchens.
" We all
specialize in Italian cosine and we wanted to bring that to the
forefront of the local dinning scene," says Lavery. " As small
businesses, we are trying to increase our visibility and promote
ourselves as cuisine oriented restaurants in the heritage of Italian
cooking."
Lavery, Malnati and Cerone are trying to kick start a
resurgence of community spirit that used to exist among local
restaurateurs.
" There used to be a tremendous camaraderie within
the restaurant community in London," Says Lavery." That has
dissipated in the past seven or eight years because a lot of major
players have left the business."
The group hoped to attract
other restaurants to participate in their events, but people have
been skeptical. Interest has begun , however now that the Italian
inspired chefs have completed five successful joint events, the most
resent being an upscale picnic at a farm during the peak of the
harvest season. Co-operating with the competition has been a
positive experience.
"These events have generated quite a bit of
publicity which has helped the profile of the restaurants ," says
Lavery " working together has defiantly strengthened the bond
between restaurants. We have become quite supportive of one
another."
The restaurants have seen an increase in their
clientele as a result of the crossover of customers from one
restaurant to another as they attended each of the events.
"We
all gained all gained business from this," says Cerone ." It was
also very to work with our competitors and learn from each
other."
The challenge for most entrepreneurs, says Eggers, is to
continue to network and look for opportunities to strike alliances
once a businesses successful.
"Once you' re successful, the greed
factor comes into play," says Eggers. " You think you could be
making more money if you weren't in a business relationship with
someone else. Once a company starts turning a profit, they pull in
their reins. That is a mistake as it actually hurts their
growth.
"It comes down to mindset - are you growing a business or
just creating a job for yourself?"
| |
