This theory was recently bourn out following a meeting I had the other day with two people from a top 20 UK firm of Accountants. We were discussing the need to build and keep relationships with, for example, Private Equity practices who will need all the advice they can get to ensure the survival of their portfolio companies in 2009/10 through a joint seminar / or event. Our view is that each business should maintain its client relationships – good times or bad – and not be just a fair weather service provider. However, this short-sighted and reactionary firm are retrenching the Business Development Strategy, pedalling backwards, fast. A solid case of overly cautious, defensive action! We’ll watch that space and see what happens.
If you allow your relationships to wither with your range of clients from private individuals, referrers, through to the Venture Capitalist, and Private Equity communities, you can’t expect those clients or investors to come to you when they are in need of advice.