How much should you give away?

In Nigel Temple's excellent Internet Marketing Masterclass yesterday there was a discussion about how much of your knowledge you should give away. A few years ago I sat in discussions where people argued that you should give nothing away. Yesterday most people were happy with the notion of giving away about 20%, but holding back the rest to charge for. It's the old 'Sprat to catch a mackerel' notion.

Most of us, however, are unhappy when we feel someone is holding something back. It gets in the way of building relationships. If you want people to refer you or do business with you that might be a problem!

The World has been changed forever with this thing called the Internet. Most knowledge is now freely available somewhere if you search for it. Some people will pay for your knowledge, but mainly they will pay for the the value you add.

Consider this statement from someone who is very successful in developing his business with networking. This was part of his response to the NRG research into business networking:

"I do not do any cold calling. All my business comes from networking and referrals. Networking is not about selling, it's about building relationships.

Much of the business is a result of doing a presentation where I share ALL my secrets so people know how to do what I do.

Mostly, they prefer to ask me to do it for them. Even though I've explained how they can do it for themselves!”

Nigel was a living example of this in his Masterclass yesterday. The only thing the people attending were really paying for was the cost of the room for a few hours. He was then giving away his knowledge freely for a couple of hours.

Some of those people are now paying for his help to implement the stuff!

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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Week 2: Information Systems in Business

1. Explain information technology's role in business and describe how you measure success.

Information technology is a business function that plays a support role, reaching all facets of modern business. It is effectively an enabler for facilitating business processes and achieving business goals. It should thus be aligned with the strategic direction of the organisation.

Measuring the success of information technology can be difficult, however it is best measured by efficiency and effectiveness metrics. Efficiency IT metrics measure the performance of the IT system itself (e.g. throughout, speed and availability). Effectiveness IT metrics measure the impact IT has on business processes and activities (e.g. customer satisfaction). Key performance indicators (KPIs) can be used to tie measures to business drivers through benchmarking.

2. List and describe each of the forces in Porter's Five Forces Model.

Porter's Five Forces model is used to determine the relative attractiveness of an industry, allowing a business to identify potential opportunities, create competitive advantage and deter potential rivals. Technology allows markets to become more competitive.

1. Buyer power: high when buyers have many sellers to choose from, and is low when choices are few.
2. Supplier power: is high when on supplier has concentrated power of an industry.
3. Threat of substitute products or services: is high when there are many alternatives to a product or service and low when there are few alternatives to choose from.
4. Threat of new entrants: is high when it is easy for new competitors to enter a market and low when there are significant barriers to entry.
5. Rivalry among existing competitors: is high when competition is fierce in a market and low when competition is more complacent.

Source: (Porter, 2008)

3. Describe the relationship between business processes and value chains.

A business process is a standardised set of activities that accomplish a specific task. A value chain is a series of business processes, each of which adds value to the final product or service for the customer.

4. Compare Porter's three generic strategies.

Porter's three generic strategies are used when entering an new market. These strategies are:

1. Broad cost leadership: low cost, reaching a large market segment.
2. Differentiation: a focus on something that sets a business apart from its competition.
3. Focused strategy: targets a niche market, concentrating on either cost leadership or differentiation.

To be successful, a business should only adopt one of the three strategies and not try and be 'all things to all people'.

Source: (Baltzan et al, 2010)

References

Baltzan P., Phillips A., Lynch K., & Blakey P. 2010, Business Driven Information Systems, North Ryde, McGraw-Hill

Porter, M.E. 2008 "The five competitive forces that shape strategy", Harvard Business Review, Vol. 86, pp. 78 - 93.

Reducing your business risks with networking

In the NRG research into business networking conducted a few years ago the findings included the ways in which building trusted relationships through networking reduces your risk in doing business. Perhaps the more obvious ones were the benefits you get from having more people looking for opportunities for you and good honest feedback about your business.

Another one was the business intelligence that your network contains. A great example of this for those operating in the UK is the results from NRG member and Skillfair founder, Gill Hunt, for their 2010 UK Consultancy Fee Rate Survey*. This was her biggest ever survey so the results are pretty definitive. Rates by specialism, sector and region.

As Gill says "You can use this information as a guide when buying or selling consultancy and freelance services - day rate isn't everything but it gives you a place to start and confidence that you're in the right area."

I am also pleased to report that NRG members get 11% more than the average!

*Full results published here.

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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Follow up is the difference

Someone asked me this week "What is the main difference between people who are effective in their networking and those who are not?"

I replied that there were generally a number of factors. The first being that there are those that 'get it' and those that don't. By that I mean there are those who understand how networking works and some who have the idea that is some sort of selling or purely social activity.

The big difference, though, is with those that set aside time to spend following up with others. Investing time in getting to know, like, & trust them and then connecting them with the things they need to know and the people they need to know to help them achieve their busines objectives. You only get to know the relevant content and contacts in the context that is right for them by spending time with them.

In 'A simple way of standing out from the crowd' I wrote how you can stand out by becoming one of the proactive few who regularly follow up.

One simple way of ensuring you do this is to get in the habit of setting aside time in your diary for follow up and 121s after networking meetings.

I talk for a couple of minutes on follow up in this podcast, 'Follow up, Follow up, Follow up!'
Listen here:

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Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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Should you be on Linkedin?

Earlier this week I was asked whether Linkedin was useful for someone in a Professional Services Business. I have experienced the growing popularity of Linkedin in the UK through the NRG-networks Linkedin Group I manage.

I replied that it was not really about just being on Linkedin, but how you use it to complement your offline networking. The reality is that the more proactive networkers are already using Linkedin to interact, build and strengthen trusted relationships with others operating in their target markets. If you do not have an active presence online then you are missing out on this.

Online networks like Linkedin are a great complement to offline networks if you are providing services on a Regional or National basis. You can read about this in more details in '10 top tips to increase business with the effective use of offline & online networks'.

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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Baby Boomer Entrepreneurs Seth Godin's Linchpin Has Been Out For A Month

Well, baby boomer entrepreneurs, Seth Godin's new book, Linchpin, has been out for a month. What are we seeing about it's impact so far?

As for me, it has been a wonderful month. I've read Linchpin a couple times. I've shared it with many of my friends. I created a squidoo lens called Become A Linchpin. That is exactly what I want to do, be a linchpin. What have you decided? Why don't you tell me in the comments below?

Shallie Bey
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How to become a proactive networker

I have been doing some work with an NRG member on developing an online training course for networking. She came back with an excellent insight this morning after reviewing the material;

"I would definitely get more benefit from my networking after doing this training by being more focused on objectives, rather than just expecting things to evolve/happen."

It is not unusual for people to wait for things to happen in networking rather than concentrating on things to make things happen. The most successful networkers, though, get on and don't wait.

In Applying the 7 habits to your business networking I wrote that habit 1* is 'Be Proactive'. You need commitment and the right attitude. Take the lead in conversations, make connections, and share your expertise.

So just how do you make yourself proactive in networking?

The first thing is to decide your objectives and then set yourself targets for the things you can do to help you achieve those objectives.

These podcasts may help you discover what you want and what you can do.
1. 'Why are you networking & are you prepared?'

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2. Developing a Networking Strategy

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Then it's down to you to do it!

*From the best selling Seven Habits of Highly Effective People by Stephen R. Covey

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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Are you trying too hard for the perfect pitch?

Many networking events have a slot where you have to introduce yourself to the group. People can get so wrapped up in this that they think this is what networking is all about and spend ages trying to craft the perfect 'elevator pitch'. Forgetting that time is better spent in building relationships.

I was asked by someone last week for feedback on their pitch as they were not getting much out of their networking. When I asked what else he was doing in the way of helping others and following up there was a long pause in the conversation!

As long as you are able to express your proposition confidently & consistently when asked that is enough. The important elements are your target market, the problems you solve and your stories.

In my top 10 networking tips I explain the really important things to spend time on. Finding other business people who operate in similar markets to you. Then helping them and building relationships to earn the trust that is vital in business networking success.

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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Three keys to networking success

Earlier this week, Jason Cobine, shared his insights into the three keys to networking success at the NRG Marble Arch Networking Group in London. Basing his talk on his own experiences he identified the three as help others, help yourself, and follow up.

The first two keys, help others & help yourself, nicely summarise how networking works. If you want others to help you then take the lead and help them first. You can help yourself my making it crystal clear what you want so people can actually help you. He is also spot on about follow up which really is 'a simple way of standing out from the crowd'.

You can read more about the three keys from Jason in his blog 'Why are some business networkers more successful than others?'

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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Offline Social Networking

I have just returned from a weeks skiing in the French Alps with nearly 20 other business people. All people that I have met through networking in the last 5 or 6 years. The bonds built through this sort of social activity really do enhance the building of business relationships.

As William Buist put it in his Ecademy Blog on the skiing trip:

"There really is a lot of value in getting a deep understanding of how others think and seeing how they look out for you when you need support. Everyone in the party of nearly 20 was either well known to each other or to someone in the group. There's a camaraderie that's second to none."

Last year in 'Networking on the Piste' I reported on last year's trip. I have no doubt that the amount of business eventually generated between the people on the trip this year will exceed last year's as people got to know even more about each other.

Business Networking really can be fun!

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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