Friday, 27 December 2013

Business Networking to Grow Your Business

What do you get when you cross a masters degree from George Washington University with a former mean girl from high school?  You get the force of nature to whom I'm married.  She uses her supernatural powers sparingly, but effectively.  A few years ago a tenant in our rental property tortured us repeatedly.  After a few interactions with Laura, he called one Saturday morning.  Laura answered, but he asked to speak with me.

He said, "Hey dude, I don't like talking to her.  She talks down to me."

I'm guessing she caused my dude buddy flashbacks from his high school loser past.  She should have her own Avengers movie called "Mean Girl."  She would subdue villains by reminding them of their inadequacies, causing them to surrender to authorities in search of peaceful incarceration.  What does this have to do with business networking?  Not a damn thing, but it's my blog.  Now on to networking.

 Business networking is the least expensive form of marketing to grow your small business - at least in terms of cold hard cash.  In the early stages, when you have more time than money, networking is an effective strategy.  Later, you begin to see the actual costs of networking when you've tasted some financial success, and time becomes scarce.  But, networking will remain an effective strategy then, even if you have to cut back on the time commitment.  Fortunately, networking's benefits are cumulative and will continue even as you cut back on time.

Step one:  Set realistic expectations.  Networking doesn't work overnight.  You won't attend a chamber of commerce breakfast and walk away with immediate business.  Networking takes two years to achieve significant results, especially if you don't have much of a customer base to start.  People will refer business to you when they trust you.  That doesn't happen overnight.

Step two: Determine who your best referral sources are.  If you are a handyman, think real estate agents.  They'll have a steady supply of home sellers, who need fix up work to successfully sell their homes.  If you're a CPA, you want to meet bankers and lawyers.  Most banks hold small business events.  Attend them.

Step three:  Determine what events your potential customers and referral sources attend.  If you own a consulting business targeting small businesses, don't attend public policy meetings.  You won't find many small business owners there.  Look for networking groups sponsored by business groups such as the chamber of commerce.  Also look into the for profit groups, like BNI.  They ask for a large commitment of time, but deliver good training in basic networking.  Once your business grows, you'll find the for profit groups a black hole for time.  Then switch to a group with a lower time commitment.

Step four: Go deep rather than wide.  Participating actively in a couple groups will lead to more referrals than participating occasionally in a bunch.  Networking is about establishing trust through quality interactions.  Take a position of leadership in a group.  But don't do that unless you intend to do a great job.  I've been in groups with leaders, who really didn't do anything other than hold officer titles.  No one sent business their way.  Doing nothing is better than doing nothing right.

Step five: Be of service.  BNI has the slogan that "givers get."  Expect to give referrals before you get them.  Expect to pay for lunch the first couple times.  Generosity from you will breed generously and trust from your referral sources.  Networking is about win-win relationships.  Show your value to referral sources.  They'll then show their value to you.

Thanks for reading!  As always, please visit the main S&K web site www.skcpas.com for real tax and accounting advice.  Also, please like the "How to Screw Up Your Small Business" Facebook page.  I post snarky advice there three or four times daily.

Until next time, let's do it to them before they do it to us!

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