Step 8 of Building a Better Business

Anna Stubbs • August 2, 2023

Build strong networks to generate referrals

Referrals are the easiest way to generate new business, and building strong networks is a great way to generate referrals. Networking and referrals are cost-effective ways to grow your business, as the return on investment can be huge. Think about the types of networking you can undertake and encourage your team to do the same.

Five ways to maximise referrals from your networks:


1. Consider the lifetime value of a new customer.
Calculate the revenue you’re likely to generate from a new customer, then consider ways you could reward them to show appreciation for their repeat business. For example, you could send them a bottle of wine, a voucher towards their next purchase, or cash back. They’re likely to spread the word.

To calculate the lifetime value of a customer, use the below formula:
Average transaction value x average number of transactions x gross profit margin x customer lifespan


2. Identify businesses that complement your services.
What businesses have a mutual interest in your customers but aren’t your competitors? For example, a surveyor may work with lawyers, bankers, accountants, and tradies, and they can all refer business to each other.

Create an informal group and commit to meeting regularly. At each meeting, be sociable and have fun but also discuss how you can work together more effectively!


3. Focus on referring more to your networks than you’re seeking in return.
Giving work to others will encourage referrals in return - this is called The Law of Reciprocity. When you do something nice for someone, they’ll have a deep-rooted psychological urge to do something nice also. The more you refer, the more you’ll receive in return. And, be sure to thank your referrers!


4. Find out where your target clients hang out in the greatest numbers.
There may be existing networks that you can join right away that will result in referrals, e.g. BNI, Rotary, Chamber of Commerce, etc. Find out which one is most relevant to your business and join.


5. Get involved with non-profit organisations.
Choose an organisation that you or your team are passionate about, be that a sports club or a local community organisation. Avoid ‘peddling your wares’ when working with the organisations. Simply wear branded clothing and have signage where appropriate. Prospective customers need to know you, like you and trust you before they’ll buy from you.

What can you do today to grow your network and maximise your referrals?

“The currency of real networking is not greed, but generosity.” - Keith Ferrazzi

Basic strategic advice: why your business needs an evolving strategy

By Anna Stubbs • June 2, 2026
“Q: Why do I need an evolving strategy for my small business?” You’re a business owner or CEO. And that means it’s your responsibility to take care of the business, invest in the right places and make the company a success story. However, to do this, you need an agreed business strategy that lays out your goals, your mission and your plan for taking the company to the next level. So, why does this need to be an evolving strategy? “A: Your business strategy is not a static document – it’s a plan and mission that should be fluid, agile and able to react to change.” We’re trading in uncertain times at present. Each day presents a new challenge for small businesses, and having a plan that can react to change is a major competitive advantage.

Cash flow and cost control

By Anna Stubbs • June 2, 2026
More than ever, cashflow is a vital part of staying afloat, whether your business is in recovery or growth mode. Revenue, profit and your bottom line all deserve your attention. But keeping everything running is the baseline. Regular cashflow forecasts help you keep that in focus. Here’s why: Cost control - If you can't reach your targets for income, reining in your costs may give you a little extra head room to manage cashflow while you plan your next move. Visibility on outgoings - Cost control can be a challenge when it’s hard to pinpoint hidden costs or where established ways of doing things cost more money than they should. You may also have been coping with unexpected expenses, as you’ve adapted your business for unplanned circumstances or increased costs. Improving business practice - It's more than only keeping an eye on outgoings (though that's important). It's about looking at each aspect of your business and business systems (or the gaps where there should be business systems) to see if poor practice is driving costs up unnecessarily. It can be useful to break it down - You can look at cost centres such as office supplies or freight. Or you can look at what those costs do for your business. It can help to analyse costs in terms of cost of sale and overheads.

Basics strategic advice: how do accountants support your financial performance?

By Anna Stubbs • June 2, 2026
“Q: How does an accountant support my financial performance?” We’re all used to the idea of a business needing an accountant. But have you ever stopped to think what a good accountant and business adviser can actually bring to your company? Advances in technology, software and AI are changing our expectations of what a basic accountant/business owner relationship can offer. So, it’s important to reassess your expectations and to find out where we can add real, additional value. “A: Your accountant is now a full-fledged business adviser, ready to help you review, manage and transform your finances and strategy.”  In previous decades, your accountant dealt primarily with historical data – the transactions and cash inflows/outflows that had happened in the past. Today, with access to so much smart forecasting, data analysis and forward-looking scenario-planning, we can tell you far more about the future of your business.