The Five Levels of Business Relationships
In the world of entrepreneurs and startups, relationships are everything. You can’t start a business alone. You need partners, team members, investors, vendors, and customers. But people don’t realize that not all relationships are the same. There are people you only recognize on the street, business friends, and then close friends whom you can always count on to help.
Tommy Spaulding, in his new book, It’s Not Just Who You Know, categorizes relationships into five levels, like floors of a building, and identifies the attributes of relationships at the different levels. More importantly, he talks about the actions required to build a network of contacts at the highest level. He also defines the five floors of relationships as follows:
- First floor – meet and greet. This is where most business relationships start and remain. You need something specific from the other person – a loan, or product order, or help solving a problem. After you get what you want, you move on, with no giving or commitment.
- Second floor – begin sharing some information. But it’s very basic information, the type you dispense out of social obligation or because it’s a job requirement, not because you’re offering some insight into who we are. Many people call these “close” friends, but in reality, there is no trust, feeling, or giving going on at this level.
- Third floor – emotional comfort level that goes beyond facts. You feel safe enough to voice opinions, discuss perspectives, and share feelings in making decisions. In business, positional authority remains the primary guiding force at this level, and most business relationships stay at this level or below.
- Fourth floor – real, same-page connection. This level allows for conflict and resolution with no hard feelings. Here you get the introduction of “netgiving” as well as networking. Friends to the end talk about what’s important to them and aren’t afraid to discuss private matters.
- Top floor – penthouse dwellers feel the other person’s state of mind. They become confidants, advisers, and cheerleaders who understand each other’s needs and drives. Vulnerability, authenticity, trust, and loyalty are off the charts. It’s a relationship based more on giving than on getting. There’s only room for a few relationships at this level.
It’s often said, “it’s not what you know, it’s who you know.” In business, there is another dimension, the level of your relationship, and the level of trust and giving established. Of course, relationships seldom fit neatly into a given level. They’re far too dynamic, and may even move up and down floors like an elevator.
I recommend that you use the top floor or penthouse as the reference point to think about your own business relationships. How many do you have at the top level, and what are you doing to actively develop more? Are your “close” business friends actually at the top floor, or merely at the second floor? Can you count on them for real help or a big favor?
Tommy insists that building meaningful relationships, without sacrificing integrity or treating other people as a means to an end, will always help you achieve your goals and move beyond them, personally and professionally. These relationships must be based more on giving than on getting. That kind of giving gives you more than you could possibly imagine.
All relationships require hard work, patience, understanding, as well as tactics and strategies designed to make them blossom, just as you have tactics and strategies for marketing, selling, advertising, production, distribution, and customer service. Thus relationships are the basis for all the other keys to business success.