By Rashad Phillips
There’s an old saying: “It isn’t what you know but who you know.” But as we move into 2012 and beyond, the new saying will be “It’s what you know and who you know.”
Why? Because in this new economic environment, the average American doesn’t have access to the cash or credit that was available 10 years ago, so we must find a new source of funds. In 2012, Relationships are the “New Money.”
One important function of money is that it’s a medium of exchange, which means we use money to trade for goods and services. Since we don’t have the available cash or credit to exchange, many of us will be forced to consider bartering for goods and/or services instead of using cash. It’s very important to understand that bartering is based on trust. Last year, I bartered with Carlos, my mechanic when purchasing a car. Instead of selling my car to Carlos, I decided to barter with Carlos for his auto repair services in exchange for my old car. This entire barter transaction was based on trust. Carlos was certain that I wouldn’t sell my old car to another person and I was certain that Carlos would properly repair all issues on the new car purchase. [Note: We didn’t sign any paper work until after Carlos completed the repairs.] This barter deal saved me nearly $5,000.
Recently, I learned that some business owners are accepting special payment plans from some of their long-term clients. The business owners told me that they had to be flexible and make special arrangements for some of their clients (due to the economic recession). All of the business owners made it very clear that they wouldn’t offer these special payment arrangements to all of their clients, just the clients who have established a long-term business relationship. Business owners value long-term relationships and will do what is required to maintain valuable relationships. The action of the local business owners proves that Relationships are the “New Money.”
Now that you understand that Relationships are the “New Money,” you must develop a game-plan to create some powerful relationships. Below are some steps you can take to help you develop new relationships.
1.) Start Networking! Join groups, organizations, and health clubs to meet new people.
2.) Once you meet people, take time to get to know them.
3.) Be willing to share your knowledge and skills with others.
4.) Be Loyal! Once you start a business relationship, it’s not wise to jump from person to person.
5.) Give it time! Relationships don’t develop overnight, they take time to form.
Rashad Phillips is a Certified Financial Coach and a Tax Accountant. For additional information about this article contact Phillips at firstname.lastname@example.org.