Friends with benefits: making the right connections

Trade associations aren’t anything new. In the UK, the interests of merchants and craftsmen were protected with the formation of guilds in the Middle Ages. Today, London has 110 of them alone, with many more spread around the country.

For anyone looking, a myriad of trade bodies, associations and organisations can help their member firms prosper. Each seeks collaboration between companies while defending its members’ interests by advertising, producing standards, lobbying, holding exhibitions and conferences, empowering networking, aiding the finding of new customers or potential suppliers through trips and meetings, and by offering educational materials or courses.

Linda Cavender, chief executive of the Trade Association Forum, thinks all businesses should join an association because, quite simply, “in the long term it is in their financial interests to do so”. She says that associations “sit at the heart of their industry and offer many benefits to members, including money-saving activities – such as free advice on many issues, access to special rates through affinity services and regulatory cost avoidance – which can often cost a significant sum of money on the open market”.

While specific associations serve the profession’s vets (Panel 1), others can help practices, too. It’s important to remember that business information is as valuable as clinical backup.

Take the British Chambers of Commerce (BCC). Hannah Essex, co-executive director, considers “chambers [to be] the voice of their communities, helping firms, places and people to grow and thrive”.

Chambers offer a variety of services, including support. They also offer a range of business services to members. Ms Essex explains that the BCC “works with a small number of partner organisations with the expertise to deliver services nationally and has exclusive deals that can only be accessed by members”.

Then there’s the Forum of Private Business (FPB). Matthew Walker, business development manager, notes that while the FPB offers much of what other organisations do, it can help with general business advice and can signpost towards business information, including legislation and regulation. That said, the FPB aims to back members. It, says Mr Walker, “steps in when a business doesn’t have a health and safety or HR department”. He added: “We are a voice for small businesses within Government.”

The FPB offers legal expenses insurance cover. Mr Walker says that for some, “this cover makes membership worthwhile in its own right” – it covers employment disputes, health and safety prosecutions, tax protection, debt recovery help, data protection and even offers a jury service allowance.

Yet another body to consider is the Institute of Directors (IoD). Euan Holmes, its press officer, reckons that, aside from the advice services the IoD provides, “our market intelligence is worth the annual subscription alone”. Here, members can search sources, undertake research and seek out expert help to gather information that can take a business forward. Members also gain discount on the IoD’s professional development courses.

It’s also worth pointing out that trade associations can be of significant help to start-up businesses. This is something the FPB expressly recognises – it offers discount of up to 25% across membership levels. Mr Walker said: “We believe that in the first three years of starting a business is when you most need help, support and advice.”

Looking at the bigger picture

Grassroots work is one thing, but how do organisations interact with officialdom?

For the IoD, Mr Holmes said it runs monthly Policy Voice surveys, where “we listen directly to the views of our members, using them to help shape our campaign priorities”. Recent wins he mentions include the increase in the Annual Investment Allowance and action on late payments.

It’s worth taking the wins of the bodies with a slight pinch of salt, because others claim the same victories, the BCC included. For example, Ms Essex said the BCC network had gained policy wins including the chancellor’s decisions at the autumn budget to raise the Annual Investment Allowance, business rates relief for the high street, and lower the cost of apprentices for SMEs. She said: “These [wins] help businesses to grow and recruit.”

Interestingly, on Brexit, Ms Essex says chambers of commerce “have been focusing on offering practical support and guidance, running events and seeking answers from Government on the answers that matter most to them”.

Functionally, each chamber has a different offering, often with a range of membership options available to suit the size and needs of individual businesses.

Audience participation

As with anything in life, those who participate gain the most.

The BCC has 53 accredited chambers “so businesses in every part of the country can join their local chamber… [they’re] at the heart of a network of chambers in every region”. Ms Essex added: “Our network exists to support and connect companies… to bring firms together.”

She said chambers “host everything from networking events, to seminars and award ceremonies”. Businesses can participate in the policy work of the network through round tables, feeding into surveys and sharing their views on the issues affecting their business environment. She said: “Members are encouraged to participate.”

The FPB, according to Mr Walker, also encourages participation; it also holds events regularly in local areas. His view is that, as a not-for-profit organisation, “the FPB does not expect anyone to pay to network”. Anyone unable to attend an event can see everything online, as all events are filmed and a synopsis is published.

While the physical is important, it’s also worth looking at the digital offering the bodies offer. Mr Holmes said the IoD had, as well as memberships, “our IoD Advance community, which offers extra benefits and facilitated networking, including through our app”. The IoD Academy app allows online learning on the go.

In comparison, the FPB’s app offers direct access to forums, business calculators and features, a mileage tracker and a receipt manager, and more. The BCC has no app.

To finish

At the end of the day, apart from networking and information exchange, having the backup of services is rather like having insurance – it’s nice to know it’s there, but you really don’t want to have to use it.

Membership of the FPB starts at £99; the IoD starts at £99; BCC from free.

Other organisations to consider include the Federation of Small Businesses, The Supper Club, The Institute for Small Business and Entrepreneurship, Business Network International and 4Networking. Each offers those in business something different.