I had an email from a Professional in a large firm a couple of days ago about the experience of one of his colleagues networking at NRG-networks. He said it was one of the more productive groups for his firm and generated useful referrals leading to chargeable work.
He shared that his approach is on a 'sell through' the room rather than 'sell to the room' basis. He is absolutely spot on with that.
If you are looking for business today from the people you meet, that is selling. Successful networking builds your business for tomorrow through the relationships you build with the people you meet.
Over the last couple of weeks I have run a couple of effective business networking seminars and spoken on the subject at a conference for business consultants.
On each occasion people have struggled with the subject of their target market. When networking (as in marketing generally) it is essential to focus on a specific market segment. If you have more than one type of client then the most effective thing is to pick the client type most relevant to the people you are with. So, if you are with other owners of other service businesses, think about who their clients are likely to be. Talk about your typical clients in the markets they operate in.
During one session an accountant helped explain the point by sharing how he always focused on one specialism, International Tax. His firm can do other work, but that is his primary focus and he gets great results. Over time that is the expertise that he has become renowned for. He also knows where to invest his time and effort in finding referrals for the people that can refer him.
Seth Godin wrote a very interesting blog post this morning. He says that the number one secret of the great blogs is that every one of them leads a tribe. The function of the blog, he says, is to be the standard bearer, the north star that tribe members can point to as a place to meet or for ideas to circle around. The blog isn’t about the writer, it’s about the readers.
Since reading Seth’s new book, Tribes, I have been trying to define in my mind the specific tribe for which the Smarter Small Business Blog is written. Of course, it is written for owners of businesses or people who want to become owners of businesses. Yet, it is not written for just any owner, but those who are or want to be true entrepreneurs. Even among true entrepreneurs, there are people who want to do things the hard way and those who want to be smart about what they are doing so that they can have a better work – life balance. I believe that is the tribe to which this blog is directed. It is written for the Baby Boomer Entrepreneurs who are forming new businesses at a rate that exceeds every other age group. It is also written for the young people who are responding to the challenge of Global Entrepreneurship Week to explore entrepreneurship as their way of making a mark on the future.
I guess that to lead this Tribe of Entrepreneurs, this blog must be about helping entrepreneurs find the Tribe that they will lead in the marketplace. We shall focus upon this in upcoming posts.
Good luck at finding your Tribe. And if you are a member of that tribe of smart entrepreneurs who especially want a proper work – life balance, I hope you have found a home.
In a recent post, 'Networking saves Time and Money', I wrote about how your cost of doing business reduces over time with networking.
It was great to see in my inbox today the latest mailing from the IoD (Institute of Directors). They agree on the cost effective nature of networking and are urging their members to pursue more networking opportunities:
"If you’re tightening your company spend over the unsettling months ahead, networking is an effective resource to leverage your contacts and generate new business.
Aggressively pursue your networking opportunities over the turbulent months ahead; be seen and be heard while your competitors hibernate. Networking produces results that grow exponentially; people do business with people they know."
A number of NRG-networks members shared some experiences recently on how long it took them to get results from networking. Each of them owned a specialist consulting business operating with Corporate Customers. Typically it had taken them a couple of years to work out the importance of being structured and targeted with their networking.
At the end one of them said the reason that he liked our NRG groups so much was that they were structured so he could identify and build his Inner Network much more quickly than in other groups he had tried and in a lot of random activity. In fact it had taken him 2 months to achieve what had taken him 2 years elsewhere.
If your networking seems to be going nowhere take some time to work out what the right groups are for you and your business. A good question to start with is "Where do the owners of other businesses with similar markets to you network?"
I was involved in a meeting with owners of small businesses last week. One of the topics was the importance of networking in a recession. The consensus of each of the owners was that, for them, networking is the most cost effective way of building a route to market. Once trusted relationships are in place opportunities are consistently uncovered and shared. You do not have to keep hunting for that one off elusive piece of business.
Your return on investment keeps multiplying as you maintain the relationships.
Another benefit of networking that is little appreciated is this: Over time your costs actually decrease! Once you find the right networking groups and your inner network you spend more time with fewer people.
Compare that to the costs involved in other marketing. You only continue to get results by continuing to spend more.
There is a great quote from James Caplin in this article, Network like no tomorrow, by FT Columnist, Stefan Stern:
“Good networkers form mutually beneficial relationships with other people,” Mr Caplin says. “It’s all about being reciprocal – being of value to someone else who is in turn valuable to you. Effective networking is really ‘a way of being’ – knowing what you have to offer and being prepared to offer it – rather than a sudden burst of counter-productive activity during a break at a conference.”
According to the article James Caplin is working on a book on networking provisionally entitled 'I hate networking'. I look forward to reading it.
I was having a drink with a friend recently who was coming to the end of a contract. He was considering a change of business as he had nothing to move to. During our conversation it became clear that he was only considering something different because that appeared to be somehow easier.
I asked if he knew anyone that could help and he said he couldn't think of anyone. Over the next hour or so I got him to identify 6 Companies that were likely to need his expertise. I then got him to tell me about the people he had worked with & for in the last couple of years. We identified 6 of those that he would phone the next day & arrange to meet for a coffee or drink.
During one of the telephone calls he was asked if he was available for a new project in a couple of weeks!
He is now committed to keeping in contact with these people on a regular basis.
I don't suppose that you know people that you should stay in touch with? What about the people you have worked with & rate highly. People that you can help & advocate, because if you can do that for them they just may be able to do it for you.
I attended a marketing presentation for the owners of small businesses last week.
During one of the discussions people shared the number of different marketing activities they undertook. The average was about 4 or 5 with only a couple including advertising.
The general view was 'advertising doesn't work'. Most of the people who said that had tried it once. Usually with something like Yellow Pages, a local version or an equivalent online directory.
The people who were successful in advertising did it consistently & persistently. They used media which was read, listened to or watched by their target market. For them it was not a one off or occasional activity.
This reminded me of people who say 'networking doesn't work'.
It doesn't if you generally meet people once or twice and expect something first. It does when you get to know people over time & help them with advice, support and introductions. That is where Repetition, Reputation and Results comes in. Think of them as the 3Rs of Networking.
You get to know people by repeated activity and meeting regularly. This means joining a group then consistently attending, and contributing to that group.
You build your reputation by what you give to others. The knowledge you share, the support you provide and the introductions you make.
This motivates others to give back to you and deliver you the results you deserve.
Towards the end of the article Nigel suggests that you adopt a giving attitude in your networking & writes,
"Successful people tend to be helpful people. One of the reasons for this is that many people have helped them to get where they are today. They tend to be happy to give information, advice and (when you get to know them), introductions.
I suggest that you do what they do: give without expectation of return.
It's impossible to give in this life, without getting something of equal or greater value back in return"
