New business owners often ask me how they can learn more about back-office functions and business costs. The answer I always give them is the same: trade associations. Trade associations exist to share best practices and industry-specific knowledge with their members. Because memberships in a trade association cost money, many startups defer joining them. In most cases, this is a big mistake since the value is returned in many ways. Often membership costs are based on the size of the business.
For my documentation and training development company, my membership dues were about $2,500 per year and were based on our size when we signed up. Once I was a member, my company had access to a group medical plan offered only to members that saved me over $1,000 per month in premium costs. The return on my investment (ROI) for healthcare expenditures alone was just over two months.
Moreover, I had access to financial performance data for similar companies to benchmark my business against and other valuable information. Also, many of the ads and discount coupons in their monthly newsletter were for products and services I didn’t know even existed, but could have a profound impact on our productivity.
In the final accounting, the ROI for my trade association membership was through the roof and truly gave me valuable information that helps us be competitive in the industry. The Gale Directory Library Encyclopedia of Associations is an excellent source to locate your appropriate trade association and can often be accessed through your local library for free.
Are you a member of your industry’s trade association?
