Businesses are relying on word-of-mouth referrals when taking on contractors, umbrella company members have been told.
The US-based Business Network International (BNI) claimed that its 15,000 British members saw a 21 per cent increase in the number of personal referrals experienced last year.
According to the organisation, the value of invoices springing from word-of-mouth referrals reached £230 million in 2009, rising from £185 million in the previous year.
Charlie Lawson, BNI’s national director in the UK, commented: “The recession has changed the way people do business but more importantly the route which small enterprises are using to market themselves.”
He also told umbrella company members that having a “powerful personal network” can help them to build trust with potential clients and secure business even in times of economic difficulty.
Last week, Contractor UK said that invoices should be submitted with care, such as being clearly typed and easy to understand, to ensure prompt payment.
It also pointed out that important details, such as the contract number and the correct amount of VAT to be paid, should be clearly stated on the document.
