Definition of 'Business Relations'
The connections that exit between entities involved in the business process. The term business relations refers to the connections formed between various stakeholders in the business environment, including relations between employers and employees, employers and business partners, and all the companies with which a company is associated.
For example, one company's business relations may include a long list of customers, vendors, sales leads, potential customers, banks, stockbrokers and any municipal, state and federal governmental agencies. Essentially, business relations are all of the entities with which a business is connected or expects to have a connection.
Investopedia explains 'Business Relations'
Businesses depend on the development and maintenance of vital relations with employees, business partners, suppliers, customers - any person or entity that is involved in the business process. Companies that intentionally cultivate and maintain connections may be more successful than those that ignore these connections. Strong business relations can promote customer loyalty, customer retention and collaboration between businesses in the supply chain.
From a financial standpoint, business relations can theoretically make or break a business. Strong relations can lead to better business processes, improved communications, better policies and procedures, and mutual cooperation, resulting in better products, services and revenues. Weak relations can lead to detrimental outcomes, including unhappy employees, dissatisfied customers, negative reputations and limited growth.
Many companies use a number of strategies to ensure strong business relations are fostered and appropriately maintained. Relations may be established through a number of means including social media, emails, phone calls, face-to-face meetings, etc. Relations can similarly be maintained through frequent contact (by phone, email, in person, social media, etc.).
Primary advantages of developing and maintaining business relations include customer and employee loyalty, building a positive company image and increased business performance, all of which can be important to the company's bottom line.