Referral economy required to make small businesses more profitable
New Zealand’s second National Business Networking Week organised by the country’s largest business networking organisation BNI New Zealand, will be held from Monday March 23rd to Friday 27th.
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New Zealand’s second National Business Networking Week organised by the country’s largest business networking organisation BNI New Zealand, will be held from Monday March 23rd to Friday 27th. The week is centered on helping businesses know that they can achieve growth and success through effective networking. It also focuses on small businesses needing to come together to form a referral economy that gives back to the community while driving business forward.
“With 97% of New Zealand enterprises being small businesses (and 70% of enterprises being sole traders), it’s vital that this country puts the emphasis on practical actions that directly impact this important part of the economy,” says BNI New Zealand’s National Director Graham Southwell.
“Networking is, and has always been, the lifeline of small business. This is even more apparent in 2015 when small businesses are faced with greater competition from online operators and increased costs. Business referrals hit small businesses’ cost column very little, but the sales they generate are just as valuable as those coming from costlier marketing channels.
BNI New Zealand was started in 1999 and since then it’s grown to over 2600 members and over 120 groups around the country. From January 2014-2015 locally these groups generated over $69 million in business and BNI expects that figure to rise this year.
“Small business is such an important part of the New Zealand economy,” Southwell continues. “There are about 460,000 of these in the country employing well over half a million people. 96% of these small businesses are independently owned – meaning the owners have a huge amount of power in terms of how they manage their affairs and collaborate with others.
During the week we want to focus on how businesses can make collaboration, which is the foundation for effective business networking, a core value to strengthen their businesses and improve profitability.”
According to Southwell, the networking week offers an opportunity for different groups to come together and begin a dialogue about effective strategic networking and its role in improving the economy while giving back to the community.
“Although it is a challenge for small businesses,” Southwell says, “they can be honourable businesses that work well with non-profits and community organisations while improving their bottom line. We want to focus on this during networking week as we provide practical examples for how business can grow while engaging on a deeper level with both other businesses and community organisations.”
Business owners need to consider what their core values are,” continues Southwell. “This will help them communicate their message when networking with others. For BNI our core values include Givers Gain (giving back to the community and gaining from this experience), Positivity and Accountability – such an important value in a network.”
NZ National Business Networking Week runs from Monday March 23rd to Friday 27th. For more information see www.bni.co.nz
