Building business networks
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Why are networks good for small businesses?
A thriving small business network is vital to your community. By working together, you can bring more customers to the area, encourage them to stay for longer and guarantee they will want to come back.
- help you to develop channels of communication that you can rely on in a crisis
- make it easier for your local council to consult with your community for their views on a broad range of issues
- give small businesses a united voice, which helps the Victorian Small Business Commission advocate on your behalf
- help you to explore creative ways for raising awareness of your precinct and business.
Your local council will know if there are small business networks in your area already. If there aren’t any, it may be a good time to consider starting one.
Connect, create and grow
There are many ways you can make connections with other small businesses form a group. Read on for some tips on how to formalise the group.
Step 1: Connect
You can use a social media platform like Facebook to create a private group and start connecting with nearby businesses. Other options are contacting local businesses by visiting them in person or distributing a flyer.
Step 2: Create
There are many ways to go about formalising a group. We have included advice and helpful tips below.
Step 3: Grow
Tips for creating and growing your network
Leaders from successful business networks share their tips and advice on how to formalise your group and set clear roles for volunteers.
Dana Hughes, President of the Southern Business Women’s Network, says it’s important to have good governance behind you for times when things aren’t going so smoothly. She says it’s a good idea to have this in a manual documenting the formal procedures of your network. This manual can be edited as needed and provides a good foundation for how your network will operate.
Justice Connect has useful resources for groups looking to start a not-for-profit organisation.
The Small Business Mentoring Service has worked with many business associations to form and establish their governance processes using workshops and training.
“Setting up the right structure and rules from day one is critical to an association’s ultimate survival.”
David Gregory | CEO | Small Business Mentoring Service
When deciding how you want to run the network, it’s useful to have roles so everyone knows who is responsible for what and to minimise confusion. Dana makes the following points about volunteer roles:
- Have clear role descriptions so people know what they are stepping into
- Have fixed term roles so people don’t feel stuck in a role and others are more likely to put their hand up
- Share the load and make everyone feel valued
“My biggest tip is ‘don’t be afraid to get involved’. Everyone has different areas of expertise that can support a great association. Whether that be developing social media posts, designing posters, walking the streets to deliver trader packs, attending monthly meetings or being a collection / drop off point for any of the competitions (that we run). The Yarraville Traders Association is all about community and everyone that is involved volunteers their time and works hard for the benefit of everyone in the Yarraville Business Community.”
Dean Spencer | Secretary | Yarraville Traders Association
David Gregory, CEO of the Small Business Mentoring Service, says it’s also important to consider the changeover of roles as part of the necessary growth of a network:
“Evolution of an association is also critical. It can be very hard to evolve a management group unless the rules are in place to allow that to happen. This includes limitation of tenure and processes to address such things as disruptive behaviour or bringing the association into disrepute. While by nature members of an association share a common passion, it is always good to plan for any potential challenges up front.”
David Gregory | CEO |Small Business Mentoring Service
By having a small annual membership fee you can make sure you have funding for marketing or events. The Footscray Traders Association uses a tiered structure to make sure it’s affordable for all businesses.
David Gregory emphasises the importance of having a governance structure in place if your network is receiving money. This is because there may be tax implications for the fees, and there needs to be a process in place to deal with funds if the network folds.
Fee structure for the Footscray Traders Association
- Red member: $60 p/a
- White member: $120 p/a
- Blue member: $500 p/a
All members are provided with a Footscray Traders logo, which can be used on their own promotional material and a Footscray Traders display sticker.
All members are listed on the Footscray Traders website with a brief description of their business and an image or logo as supplied or available.
White and blue members additionally receive a more detailed trader or business profile, which appears on a ‘feature profiles’ page on the footscraytraders.com.au website and is posted to the Footscray Traders Facebook page and other social media channels.
Blue members additionally have the option to have their business logo placed in the Footscray Traders website footer together with supporting partners.
You can create a public face for your network using social media, a website or local signage. This channel can then be used to promote any events that you decide to run in your area such as Christmas shopping hours or Easter egg hunts.
Dana says it’s important to talk to your members to find out what they want and where possible, to give it to them. Meetings may also provide an opportunity for businesses in your community to share information about issues or things that are upcoming and may cause an issue.
If there are issues that your network is concerned about, you can email us.
We may be able to advocate on your behalf. We encourage you to contact your local council, as they may also be able to assist.
“Have fun – people join teams that are successful and enjoyable.”
Dana Hughes | President | Southern Business Women’s Network
“Associations bring respect and legitimacy to a group or region. As a result there are sometimes opportunities for the association to seek local funding support, run awards, advocate on local issues and be more than just the voice for the membership.”
David Gregory |CEO | Small Business Mentoring Service
“I believe that industry associated memberships are an integral part of a successful small business. They help businesses grow and stay on top of their game.”
For more information or answers to any queries about building stronger networks, email us.