Showing posts with label Business Development. Show all posts
Showing posts with label Business Development. Show all posts

Are you networking with the right people?

I met someone recently at one of my regular networking groups. When he explained what he did I advised him that the group may not be great for him and his business. He sold cosmetics direct to consumers and was there to generate leads for his business. The group was made up of professionals and providers of business services.

He said, rightly, that everyone there either used or knew people that used the types of products he sold. I said that was true, but they were all there because they shared the same target market. They were not selling directly to consumers of domestic products so the best network for him would be with others selling directly to the same domestic consumers.

Successful networking for business development is all about building relationships with the right people. A good place to start when selecting a networking group for business is to find one where the other members sell to the same target market as you.

Good Networking! Dave Clarke ps Visit the new home of the business networking blog for the latest posts

What is a business networking group?

At a dinner party a couple of weeks ago one of the other guests asked me what I do. I used the phrase 'Business Networking Group' in my reply and she said, "What's a Business Networking Group?"

I was a little thrown at first, but realised I shouldn't be. I think we often assume that everyone knows more about whatever it is we do than they actually do. I met someone on a Referral Institute training course yesterday who had once written technical manuals. He said that the instructions included the advice to write so that an 8 year old can understand.

Wikipedia describes Business Networking as 'a socioeconomic activity by which groups of like-minded businesspeople recognize, create, or act upon business opportunities. A business network is a type of social network whose reason for existing is business activity'.

I realised that I needed to explain a little bit more.

I explained that there are now many more people running their own business than ever before. Many of them are specialists in what they do and do not have any marketing or sales people. They rely on personal recommendation or word of mouth for their business. Their main problem is that they need more of these opportunities than they currently have. Many of the older business support services in the public and private sector do not really help these business people with generating positive word of mouth.

Any group exists because the members share and are committed to a common cause. The common cause for the members of a business networking group will usually be helping each other in business. This may be around sharing business, support and information (or all 3). It is mainly the need to generate more business by recommendation that has lead to the growth in the market of specialist business networking groups.

A business networking group is a club where the common cause is helping each other become more successful in business.

The most important thing in an effective business networking group is that the members don't just share the same needs. They must be in a position to really help each other. That will often mean that the members share similar target markets and provide similar value services. Success is then down to the commitment and contribution they make.

Would an 8 year old understand how you describe what you do?

Good Networking!
Dave Clarke

The small business advantage in the Digital Age

I write this from a train heading into London. I am on my way to a 'Digital Mindset' workshop from Ecademy founders Penny & Thomas Power. The purpose of the event is billed as 'to look at why a "Digital Mindset" and Digital Coaching will grow your business.' The tag line for the Ecademy website is now 'Learning, networking and business development for the digital age'.

If we are in a 'digital age' what does this mean for the Owners, Directors and Partners of small specialist businesses and professional firms? It is mainly these people who go networking as their primary route to market.

Most of the people I meet in this category are passionate about what they do and are open and transparent about what they do and why. It is this passion, openness & transparency that gives them an advantage in this digital age. It is exactly the right approach online.

Contrast this with the news furore over the last few days about wikileaks. Whatever the rights or wrongs the revelations, if true, show some of our politicians, diplomats and representatives of big business taking the opposite approach. Saying one thing in private and another thing in public. The internet has made it easier to judge openness, honesty and transparency. The very things that small business is mainly better at that big business.

You may have heard the expression 'people buy people'. The approach for the digital age is the same as what came before.

Be yourself!

Good Networking!

Dave Clarke

Building a business by referring others first

In a recent post I suggested it was a good idea to work out who else is needed when you do business. This simple exercise means you can work out which other businesses give you the most referral opportunities. Both for giving and receiving.

Someone asked me a couple of days ago if I could give an example. Some years ago I was involved in an Internet start up. We provided high speed internet connectivity to business clients in City of London in the days before broadband! Before we opened for business we built relationships with other providers of services in the Internet, IT and Telecoms space. Services that would be complementary to ours and that our clients and potential clients might also need. Some of these may have been competitors in some respects, but we felt that if they were right for a client then we would not be and vice versa.

These other businesses included providers of:
  • consumer ISP services - we were b2b only.
  • computer and computer network equipment - we did not sell this equipment.
  • email and internet software.
  • internet security.
  • computer cabling suppliers.
  • data storage.
  • telephony and telephony equipment.
  • e-commerce.
  • web design.
  • internet hosting.
Most of the time when we spoke with potential clients they might not need our services at the time, but they needed one of these others and we referred them. This kept us front of mind for both our potential clients and those we referred. 

Over time all of our business came through referrals from these sources. The 'potential clients' became clients or referred others as a result of the help we provided for them. Those we referred then stated doing the same for us. Many of these relationships also resulted in more collaboration, but that's another story...


Good Networking!
Dave Clarke

Your network is the biggest asset in your business

Over the last couple of years many small business owners and professionals have discovered for the first time that business is about downs as well as ups. Fortunately for the economy most of these people have a pretty positive outlook and will be helping lead us out of recession. There are those that will be doing this in an entirely different business from the one they were running three years ago. I was chatting with a few of these people last week.

One was talking about the need to meet lots of new people and make new connections for his new business. This is a common approach, but can make life much more difficult in building his new business. It ignores the most important asset he built during his previous business and those before it. His Network! People who know, like, rate and trust him because they have seen him in action and those he has made a real difference to.

Those are the people to focus attention on as they are already in a position to make those vital referrals and recommendations that produce the best new sales for any business, new or old.

Business may be temporary, but your Network is permanent!

Good Networking!

Dave Clarke

The BIG Mistake That Means Networking Doesn’t Work

Andy Lopata asked me recently to write an article on the mistakes that people make in business networking. This article is now published in Andy's newsletter at Fresh Business Thinking. As I researched the topic with my network and reflected on my experiences I realised there was one BIG mistake.

Business people often turn to networking at different times. Start ups will often network like crazy early on and established businesses will often start when traditional routes to market dry up. The thing they very often have in common is the idea that networking is the answer to their problem. This first and BIG mistake that many people make is they dive headlong into the activity of networking with a complete misunderstanding of what networking really is.

This activity often involves looking for opportunities to ‘network’ with lots of people. They attend group meetings (once) swapping business cards with everyone they can, broadcasting their message, chasing immediate transactions and moving on. They join online networks, put together a profile and broadcast some more. After a while this doesn’t work and many conclude that networking doesn’t work.

Some think they may need to do something differently and they may get some training into how to work the room and how to craft the perfect elevator pitch. They do the rounds again and wait for the avalanche of new clients to contact them by email, phone, twitter, linkedin, facebook et al. Again this doesn’t work and a few more conclude that networking doesn’t work.

It doesn’t have to be that way! There are plenty of networking groups out there with experienced business people that will help you avoid the mistakes and make sure networking does work for you and your business. For 10 tips on learning from the mistakes others have made go the to full article on The BIG Mistake That Means Networking Doesn’t Work.

Good Networking!
Dave Clarke

How to identify the key people for your network

If you know your target market (or markets) precisely you can work out where you need to network. Some people think that this means finding people in the target market to 'network' with. This is not networking, but direct selling. In fact it is often the face to face equivalent of cold calling.

The important aspect of this in the networking context is you can then identify the key people for you who have access and influence in your target market. This is important in both finding the networking groups to join and who you should be inviting to join you in your groups.

As I wrote yesterday in 'How networking really works' you need to be building relationships with these key people. These people have access to many opportunities for you in your target market so are likely to be operating in the same market as you. They may well provide services that are complementary to yours.

Good Networking!
Dave Clarke

How networking really works

I sometimes meet people who run around frantically to as many events as possible. They meet as many different people as they can and deliver their 'elevator pitch' as often as possible. In my book that is not networking. It is the face to face equivalent of cold calling. It is difficult and time consuming.

The key to successful networking is building strong relationships where you get to know, like, rate and trust each other. As I have written before:

"You don't build profitable business relationships by hardly getting to know lots of different people!"

A small number of people you get to know really really well can give you access to all the new people you want to meet. Effective networking is about support and sharing knowledge and finding advocates who recommend and refer you. Good networking groups provide the environment for you to strengthen existing relationships & build new ones. It is much easier and more enjoyable to develop your business in an environment like that.

Good Networking!
Dave Clarke

Is this the most important thing in marketing?

In a discussion on following up in the NRG-networks Linkedin Group yesterday Helen Dowling of 'Exceptional Thinking' shared that she thought that following up is "the most important marketing technique you can do".

She certainly has a point about the importance of following up. My experience of marketing in general and networking in particular is that following up is the activity that really makes the difference. There is very little point in attending lots of events, delivering your pitch, chatting briefly with many different people and collecting boxes full of business cards you do nothing with.

You don't build profitable business relationships by hardly getting to know lots of different people!

You build those relationships by finding the real points of connection and then following up with different interactions over time. That includes regular participation in your networking group, follow up emails, follow up phone calls, follow up on Social Networks and most importantly of all, follow up 121 meetings.

In other words take the lead and become one of the proactive few. It is after all the first habit of highly effective people.*

*Read more on Stephen Covey's 7 habits in my article - Applying the 7 habits to your business networking.

Good Networking!
Dave Clarke
Share/Save/Bookmark

What comes first in business networking?

The first habit of highly effective people is being proactive* according to the best selling book by by Stephen R. Covey. I was reminded of this when reviewing the video interview in my recent post, 'Just how important is a network in business?'.The last question I was asked in that interview was what key piece of advice I would give to someone new in business.

I was pleased to find my answer in line with some great advice from Robert Craven in his article, 'The Shortest Book on Business?'. According to Robert success is down to some very simple basics - clarity, focus, confidence and activity. And as he says in regard to activity, "Take Massive Action".

It's great advice for networking your business. You do need to be clear about what you do and who for. Some people, however, spend huge amounts of time and energy on honing their service offerings before undertaking any business development activity.

The important thing is not to put off the activity itself. Go out confidently and build your network first and they will help you refine your messages and offerings.

*For more go to my article - Applying the 7 habits to your business networking.

Good Networking!
Dave Clarke
Share/Save/Bookmark

How to get what you want from your networking in 2010

Yesterday I posed the question 'What do you want from your networking in 2010?'. The way to ensure you get what you want is to go about it strategically. Set your goals and plan the activities that will help you achieve them.

The temptation is to set yourself the goals you have as targets. The problem with this is that you may be targeting things outside of your control. The important thing is to target yourself with those activities that you do control and that will lead to the results you desire.

I discussed this in 'Applying the 7 habits to your business networking'. Habit 3 of Stephen R Covey's Seven Habits of Highly Effective People is 'Put First Things First!' Set yourself targets for the things that YOU can control.

In 'Applying the 7 habits to your business networking' I included these as examples:
• The amount of time you can devote to networking
• The number of events you can attend
• The number of 1-2-1’s you can arrange
• How much time you can spend online
• Building a contacts database
• What introductions you can give
• Choosing the right networking organisation for you

Listen to this short podcast for the simple steps involved in developing a strategy to generate more business from your network.

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

business networking | business networking events | business networking podcast
Share/Save/Bookmark

What do you want from your networking in 2010?

As you reflect on the year gone by and maybe make some resolutions for next year it is worth thinking about what you want to achieve through your business networking activity.

In 'Applying the 7 habits to your business networking' I wrote about Stephen R Covey's Seven Habits of Highly Effective People. Habit 2 is Begin with the End in Mind. Unless you know what you want from your networking then how can others help you?

Once you have clearly identified what you want that's a great start. Combine that with going about it in the right way and you are well on the way to achieving your networking goals.

Take a listen to this podcast on the subject;
'Why are you networking & are you prepared?'
Good Networking!
Dave Clarke
Get 7 networking secrets for business success

business networking | business networking events | business networking podcast
Share/Save/Bookmark

Is this the ultimate in networking?

In a meeting earlier this week someone was describing how he was developing a new venture with a business partner. He described his partner's approach to building business, "Give me one contact and I will build a business!"

It was very refreshing to hear him describe how he went about this by genuinely building close working relationships. Over time both parties gain substantially from the investment in the relationship. His approach is the opposite of many people who think networking is mainly about meeting new people. In reality they are spending lots of time getting to know very little about the many people they meet.

Most of us will need more than one close relationship to build a business. I think the important lesson is to spend more time getting to really know the people that we do meet. You really can build a business by spending your networking time in developing relationships and growing advocates within the right group of people.

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

business networking | business networking events | business networking podcast
Share/Save/Bookmark

What Matters Now

In 'What Matters Now: get the free ebook' Seth Godin writes about a new ebook he has organised. In it 70 big thinkers each contribute a page in which they share an idea for you to think about as we head into the new year. Then after thinking about them to do something with what you learn. Download and read it below.
What Matters Now
The overall idea I take from it is how much more we can achieve when we collaborate!

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

business networking | business networking events | business networking podcast

Share/Save/Bookmark

Advocacy by Penny Power

I was really pleased when Ecademy founder Penny Power asked if she could quote me on Advocacy in her new book Know Me, Like Me, Follow Me - what online social networking means for you and your business.

Penny was at a meeting when I presented and subsequently wrote about here a couple of years ago on networking for advocates. She wrote about this in her book and what she learned about advocacy.

"The greatest aspect of 'like me' is is the power of creating advocates around your knowledge, people who will 'talk about you when you are not in the room'. To me this is real network value. 'Know me' cannot achieve this ... you cannot achieve this advocacy without having a relationship with that advocate."

Read more from Penny at the Know Me, Like Me, Follow Me Blog.

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

business networking | business networking events | business networking podcast
Share/Save/Bookmark

Networking Lessons from the Law of Contract

One of the first subjects I studied in Law was the Law of Contract. In order for a contract to be a legally binding agreement a number of distinct elements need to be in place:

1. Offer and acceptance
2. Intention
3. Capacity
4. Consent
5. Consideration
6. Legality
7. Possibility

These indicate that the parties have not just discussed a possibility, but have a definite agreement about a desired outcome and the specific things required by each to fulfill this.

There are great lessons to be learned from this in networking. Many people are not really getting the most out of their networking. They are just meeting people and hoping for the best. Success in networking is something that will remain a possibility rather than a probability.

Those that follow a structured and systematic approach to building trusted relationships do really well. They do the things they need to do for others in their network and those others will know what they need too.

It is a good idea to get together with your really good business contacts and find out if you can agree specific things to help you each achieve your business goals.

Dave Clarke
Get 7 networking secrets for business success

business networking | business networking events | business networking podcast
Share/Save/Bookmark

Does it really cost that much?

I have attended a few meetings recently where the attendees seemed to expect a professionally run event with profitable results, but without really paying anything. Do they all provide their services at no real cost?

Someone emailed me recently to ask about a networking event "does a meal really cost that much at ...?"

I answered "No, but running a professional organisation with high quality facilitation and attendees does. They are not a non profit!"

Networking in the right group means building trusted relationship that both increase the speed and lower the cost of business development. What value do you place on that?

See these blog posts for more on speed and cost of business development in business networking:

The value of networking for advocates
Saving time with organised networking

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

business networking | business networking events | business networking podcast
Share/Save/Bookmark

You don't get fit by joining a gym...

Yesterday I wrote in 'It takes more than just showing up' about the importance of following up and building relationships in effective business networking. Later on I received an email from my colleague Martin Davies with the following quote.

"You don't get fit by joining a gym...
You don't learn to swim by reading a book...
You don't build relationships without meeting people...
"

He went on to say that if you follow a good process, however, you will get the results you want, whether it be fitness, swimming or building business relationships. A good networking group provides the process and the environment that allows you to turn contacts into relationships that result in business for you.

For a great story about this follow the link to 'Winning a Major New Client through A Networking Relationship'.

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

business networking | business networking events | business networking podcast
Share/Save/Bookmark

What's your story?

I facilitated a recent mastermind group where one of the issues raised was about communicating a difficult business proposition. The discussion led to the conclusion that a story would be a great way to do this. In 'Telling a story to illustrate what you do' I wrote about how useful a simple story can be in this regard.

One of the other participants shared a great tip for producing a good story. He had asked 2 clients that were representative of his ideal customers to share their stories of how they had come to choose his business. He then got a copywriter to produce these as short case studies. The stories have been instrumental in helping generate much new business.

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

business networking | business networking events | business networking podcast
Share/Save/Bookmark

Networking and Masterminding

One of the problems in running your own business can be taking time out from the day to day to chat about things and get ideas from other perspectives. People who are very successful in business surround themselves with people with different skills to themselves and different ways of looking at the world.

As you develop close relationships through networking it may be appropriate to find a small group where you can help each other achieve your overall goals. I am involved in a couple of these groups where the members act like a 'virtual board' for each other.

As I wrote yesterday Networking can be about much more than new business. A small mastermind group or virtual board can provide you with a much needed sounding board and challenge you to make sure your plans have a reasonable chance of success!

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

business networking | business networking events | business networking podcast
Share/Save/Bookmark