20 Ways To Build Strong Relationships With External Stakeholders

In today’s competitive business environment, relationships play a key role in the success of a business. In particular, the bonds entrepreneurs form with their vendors, contractors and other companies and the quality of those relationships directly affect how their businesses will perform on the market long term.

While many leaders understand the importance of forming relationships with external stakeholders, some make the mistake of focusing on quantity over quality. To help them form lasting connections, 20 Forbes Business Council members each share one thing leaders can do to build and strengthen their relationships with the vendors, contractors and other companies they do business with. Read on to learn more about the benefits of cultivating high-quality business relationships.

1. Seek Industry Recommendations

Vendor relationships have caused the rise and fall of many businesses. In a world where business moves at the speed of light, many of my counterparts and I are willing to pay a reasonable premium for a business partner whom I trust will present me with a quality product, share their industry expertise and support my business growth. Personal recommendations and industry reputation are paramount. – Greg Caesar, Medfluence Advisors

2. Aim For Authentic Relationships

We strive to treat vendors and contractors as valued partners and not simply commodities in which we are seeking the cheapest price. When you make relationships only transactional in nature, you tell your vendors it’s only about the price, not working towards common goals together. That is ultimately a losing proposition in the long term. – Craig Dunaway, Penn Station, Inc.

3. Align Around Business Goals

One of the best ways to strengthen relationships with vendors and other companies is to show how the goals of your business align with theirs. Demonstrate how working together in a fair and respectful fashion can help everyone succeed. – Matthew Davis, GDI Insurance Agency, Inc.

4. Get Agreements In Writing

In order for companies to build and strengthen relationships with various stakeholders, it is important to include business alliance agreements or capital and business alliance agreements. Ensure it’s possible to clearly establish the relationship between the two companies externally and in writing. Additionally, a press release about the partnership is even more effective. – Karita Takahisa, UNIFY PLATFORM AG

5. Foster A Culture Of Mutual Success

Working with third-party companies is not only essential but crucial, as they can help your business develop a strong and fundamental pillar in the market.​​ This consequently enhances your brand reputation, customer satisfaction and loyalty, productivity, effectiveness, efficiency and time to value in e-commerce. Therefore, a culture of mutual success must be deployed. – Onahira Rivas, Florida’s Cotton Clouds

6. Implement A Robust Communication Strategy

One crucial step companies can take to build and strengthen relationships with vendors and contractors is implementing a robust communication strategy. Regular check-ins, feedback loops and collaborative platforms foster trust, ensure goal alignment and swiftly resolve issues. Strong relationships lead to openness when challenges arise, innovation and long-term success. – Jim Stevenson, Bletchley Group

7. See Them As An Extension Of Your Company

One of the best ways to build and strengthen your relationships with vendors and contractors is to stop looking at them as outsiders and start looking at them (and treating them) as an extension of your company! Also, refer them to new clients generously! – Mykie Stiller, Voss Coaching Co.

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8. Prioritize The Development Of Strong Relationships

Strong relationships with vendors are key. Companies can prioritize transparent communication, timely payments and mutual trust with vendors and contractors. Strengthening these relationships fosters collaboration, reliability and efficiency in supply chains, which is crucial for sustained business success. Share goals and challenges, provide timely feedback and be reliable partners. – Kranti Ponnam, Kipi.bi

9. Pay On Time

One way to build trust with your vendors is to pay them on time. Delayed payments is a deal-breaker for most firms and this can easily damage relationships. You can prove that you are a reliable partner by setting up automated payments and communicating clearly about payment terms. In case of potential delays, notify your vendors in advance and issue an apology. – Sabeer Nelliparamban, Tyler Petroleum Inc / ZilBank

10. Offer Referrals

Refer business to stakeholders. If I trust you enough to have a business relationship with you, then that means people will trust my referral of your business. Supporting another partner to win does not mean losing out on business. In fact, this will boost your credibility and business relationships when others see you offering referrals without having been needed or told to do so. Operating from a win/win perspective is the way to go. – Ariya Malek, Educational Awakening Center

11. View Them As Allies

Treat partners as allies, not just vendors. Open communication, shared celebrations of success and genuine appreciation for their contributions forges trust. Stronger relationships create a network of mutual support where everyone is invested in each other’s wins. A healthy ecosystem of partners leads to a healthier business overall. – Elie Y. Katz, National Retail Solutions (NRS)

12. Make It A Collaborative Effort

Companies can strengthen relationships with vendors, contractors and other companies by regularly seeking out feedback and collaboratively setting goals. This engagement fosters mutual respect and understanding, enhancing partnership quality. Strong relationships are crucial as they lead to better service, reliability and opportunities for innovation. – Stephen Nalley, Black Briar Advisors

13. Foster Clear Communication

Companies can strengthen relationships with vendors and contractors by fostering transparent and open communication. This builds trust, ensures alignment on goals and expectations and facilitates problem-solving. Strong relationships with business partners are crucial for smooth operations, mutual growth and the ability to navigate challenges collaboratively. – Stephen Sokoler, Journey

14. Hold Bonding Events

One effective strategy to strengthen business relationships is hosting meetups at events like Formula One or Cirque du Soleil. This approach fosters open communication and bonding while demonstrating appreciation and building trust. These interactions are crucial for long-term partnerships and a resilient supply chain. It also sparks informal, valuable conversations. – Dr Krissy Jones, Trilogy Trust Foundation

15. Be Sincere And Open

Sincerity and openness always play a pivotal role in relationships, whether it’s with colleagues or suppliers. With suppliers, it’s particularly crucial to establish partnerships based on trust. Each day brings new situations where we can be helpful to each other. When relationships are built on mutual support and understanding, each partnership becomes not only beneficial but also a reliable alliance. – Jekaterina Beljankova, WALLACE s.r.o

16. Establish Tailored Appreciation Strategies

Companies can strengthen business relationships by implementing tailored appreciation strategies. Recognizing and rewarding partners for their contributions fosters deeper loyalty and sets your company apart. This personalized approach cultivates a collaborative environment, which is essential for long-term success in competitive markets. – Shehar Yar, Software House

17. Host Appreciation Conferences

Once in a while, maybe yearly, have a conference in honor of the companies you work with. Publicly reward those who have made your success possible, and make them feel valued and part of the team. This is the oil that greases the gears to make your business run faster. – Zain Jaffer, Zain Ventures

18. Invest In Joint Professional Development Programs

Investing in joint development programs is a great way to deepen partnerships. This can be achieved through collaborating on mutually beneficial projects, such as research and development initiatives, sustainability efforts or employee exchange programs. This strategy not only fosters innovation and growth for all parties involved but also strengthens the partnership. – Michael Shribman, APS Global Partners Inc.

19. Commit To Transparent Communication

Prioritize transparent communication with vendors, contractors and partners to build trust, resolve conflicts and align goals. Regular dialogue demonstrates commitment to collaboration, fostering enduring partnerships. Strong connections drive efficiency, productivity, and innovation. Ultimately, transparent communication cultivates a cooperative environment and ensures long-term success. – Sahit Muja, Albanian Minerals

20. Remain Consistent

Companies should prioritize transparent communication, fair negotiations and timely payments with vendors and contractors. Building trust through consistent interactions and honoring commitments strengthens partnerships, enhances collaboration and fosters long-term success in business relationships. – Trey Ferro, Spot Pet Insurance