Inside Small Business | Small Business & Home Business Marketing

Finding Financial Opportunities through Networking

By Nancy Michaels

If you view networking as nothing more than a way to meet people who can further your own business goals, you probably won’t get very far. When approached with purpose and thought, networking is an excellent way to build mutually beneficial relationships within your and your clients’ industries.

In March of 2003, I was featured in an article on building effective business alliances in Entrepreneur Magazine. The reason? I had bid on lunch with Bruce Nelson, former CEO of Office Depot, in order to win his trust and business. All proceeds went to a charity I believe in, Count-Me-In, which champions the cause for women’s economic independence by providing access to business loans, consultation, and education, and my $1050 investment landed me my largest client to date.

Here are some networking tips you can put to use right now that will help win business.

1. Show up – See and be seen in places that make a difference

Woody Allen once said the key to success is in showing up. How true. If you go back and look at your biggest wins in business, I can guarantee you’ll track them to being at the right place at the right time and following up. It’s great to belong to professional organizations that give you moral support, however, if your clients aren’t hanging out at these meetings, you might be better served joining your client’s professional organization and becoming actively involved. Professional organizations outside your industry are where you’re most likely to meet people who will need your services. It’s not enough to simply join and attend a monthly meeting. Get yourself on a committee where you will make an impact, meet potential clients and gain new referrals. You’ll make a positive and memorable impression and your target market will begin to know and trust you.

I worked with an interior decorator that received a lot of business from attorneys. I suggested she join the Massachusetts Bar Association to network with potential clients. She ended up being the only interior decorator of the group and had no competition. Also, for instance, a caterer who is active with the local chamber of commerce is likely to meet people who plan corporate parties and events. This caterer is more likely to gain clients through the chamber than through a caterer’s association. Another benefit of professional organizations is that they often sponsor functions during non-business hours specifically for the purpose of networking.

2. Do your homework – Before and after

Before a gathering, find out who will be there and familiarize yourself with the backgrounds of the people you will be meeting. The information will arm you with relevant conversation starters while demonstrating your interest in the lives and careers of others. Try to meet two to five new people and listen more than talk. Ask lots of questions so that when you leave, you will have a pretty good idea of people’s needs. After the function, keep in touch with your new contacts by sending a card with a personal, handwritten note.

3. Take a risk and ask someone to lunch

It makes sense to break bread with folks who you could benefit – an editor from your client’s industry trade journal or a potential client. If you don’t ask, you’ll never know. If all else fails, do what I do. Offer to donate $1000 to the charity of their choice for 90-minutes with you over lunch. That’s a much more difficult offer to turn down. It also shows you probably have something wonderful to share with them that will benefit their business. Lunch with Bruce Nelson was certainly the most expensive meal I ever had, but it led to my biggest client and was well worth it.

4. Dine in the right spot

I recently had lunch in a New York City restaurant with Geraldine Laybourne, the CEO of Oxygen Media. The restaurant she chose was like sitting in a TV station lobby and watching as nearly every person came in to take their seat was a celebrity. I met Barbara Walters, saw the head of AOL, a writer for the New Yorker, etc. It was like participating in a who’s who of media. When I return to NYC, you can guarantee I’ll be dining in the same place. I’ve got a good feeling my lunch date will be happy to join me there.

5. Make a specific request

It’s always wise to ask an existing client out to lunch as well. I continue to make contact with my clients well into the relationship. At times I’ve asked them a specific favor, such as, “Would you be willing to send a referral letter to my prospects as I look to grow my business?” Usually, I offer my advice and council on how they can improve their business. I want to be perceived as their trusted advisor and friend.

6. Always be willing to return the favor

Whenever you ask clients for a favor, make it clear that you’re willing to do the same for them - in whatever way they deem appropriate. After asking a client of mine to send a letter out to my prospect base that sang my praises, I offered to return the favor and he took me up on it. About a month after the letter went out, his assistant called me and said, “It’s pay back time” and asked me to attend a fundraising breakfast for a local politician for a $1000 contribution. It served to be an outstanding place to network and it showed that I could be trusted with my commitment to him to return the favor.

7. Use technology to help you along

Stay connected with your customer and prospect base by having the right technology tools available. Whether it’s a BlackBerry, your cell phone or a Palm Pilot, you need to be able to make connections while you’re on the road or simply away from your office. Updating your web site and utilizing e-mail (not as a replacement for face-to-face contact, though) can help you stay connected.

8. Remember that relationships take time

Once you have the meeting and greeting part of networking down, remember to follow up with your new contacts. Advertising experts say consumers need to see a product six or seven times before they connect it with its ad. As entrepreneurs, we need to use the same strategy to promote our business. Having face-to face and frequent contact with a customer or prospect can set you apart from your competitors. Send articles, books, and announcements that may be of interest to them. Remember their birthdays, their kids names, send them thank you notes, celebrate unexpected holidays and keep them in mind at all times when servicing them. Keep them informed of your expertise in your field and in their industry, as well as accomplishments within your company. They’re more likely to give your name to others if they feel like you’ve got the expertise and they hear from you often. Over time, you’ll build a life long relationship by showing your value and commitment to them.

9. Leverage your relationships through endorsement marketing

After you’ve established a strong network, leverage it through an endorsement marketing campaign. An endorsement takes the testimonial one giant step forward by going directly from a satisfied client to a prospect. Ask your best client to sign off on an endorsement letter on their letterhead to your list of prospects. Send out a follow up letter from you two weeks after the endorsement letter to the same prospects, including three other testimonials and something of value, such as an article you’ve written. Send a grand finale letter two weeks later, referencing the initial letter and including a call-to-action.

10. Create a raving fan list

Sit down and write out a list of players in each of your client’s industry - whether you know them or not. What’s your plan for contacting each and every one of them, so they can join your list of raving fans? Don’t forget elder leaders within your client’s industry, editors of trade journals, prospects you’d like to have as clients, and other vendors or service providers that you can align yourself with. Why not initiate contact with this group of people and begin to develop relationships that could be key to your success within that industry?

The key to never making a cold call is in creating a method in which you draw people to you - it’s having charisma and notoriety that causes the phone to ring. Your job is to get out there and develop the relationships with key players in your client’s industry in order to attract those inbound calls and clients.

Nancy Michaels, is the author of five books on small business marketing, including Perfecting Your Pitch. She is also the Founder and President of Grow Your Business Network, which works with companies that want to reach the small business community and with small business owners who want to sell more products and services. She can be reached at nmichaels@impressionimpact.com. Visit her web site at growyourbusinessnetwork.com for more information on cultivating new business on a budget.

           

Posted on Thursday, April 20th, 2006 at 2:23 pm and is filed under Money/Finance, Small Business. You can follow any responses to this entry through the RSS 2.0 feed.