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More than nine in 10 small businesses believe that good relationships with those who aid and supply their ventures are critical in times of economic uncertainty or hardship.

According to a new report from HSBC, businesses who are committed to keeping those who aid their day-to-day work on side believe that knowledge of their business will lead to a saving of both time and money, as well as being a rich source of good long-term advice.

Half of small businesses felt knowing the business well was key to success in relationships, 31% said good relationships could save them money and 11% said a good relationship with someone who aids or supplies the business would be able to offer them useful advice when times are tough.

The report also found that the quality of relationships is extremely important to small business; just 4% of businesses disregard the value of good relationships, while 63% say that having good relationships with their solicitors, accountants, banks, utility company and goods suppliers is vital to business success.

The businesses questioned by HSBC said that trust is the number one factor in making a business relationship work, with reliability, consistency of service and delivery coming second. Less than one in 10 businesses asked isolated value and cost as the defining factor of a good relationship.

A good business needs a good adviser, one that can be trusted, is reliable and always offers great service. If that sounds like your financial adviser that's great, but if it doesn't it might be time to look round for someone else to help sort out your mortgages, your savings and your loans.

Noel Quinn, head of commercial banking UK at HSBC says: "Small businesses recognise that good relationships are vital to help them navigate through testing economic waters. For those committed to helping businesses succeed, it is clear that having a close relationship comes from developing a good understanding of the company and building trust."

SOURCE: HSBC, 14/03/09

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