Have you ever heard the old saying – it’s not what you know but WHO you know? That could never be more true. In an age where social networking is BIG business, there’s a reason…because connections lead to contracts and closed deals. Women in business and women business owners tend to have an edge in the networking game, because our inherent personality is to listen well and see how we can help. Those two key skills are critical to effective networking.
Effective networking is vital in today’s challenging economy. The more people seek to compete on price, the more relationships weigh in on the overall decision. When a business owner has to choose between a vendor that’s cheaper, who they don’t know (and possibly isn’t a good referral source of future, similar business) and a known supplier/service provider who may not be as price competitive but becomes essentially a business partner in terms of resources and possible referrals – who do you think the person will choose to do business with? The answer may surprise you.
When it comes down to a marginal or modest price differential – by and large – it’s always the stronger relationship and connection that wins out. How successful your business is certainly relies on your expertise and ability to deliver quality for the price, however your network is as much a business asset as having a proprietary product or approach to service.
Some time ago I was asked to consult for a software company, they were in a particular area had achieved some significant success and were looking to increase their business. Sales were in the 7 figures but they wanted to do better, and dominate the market as they clearly had a superior product.
When I asked them what their network was like and how much emphasis was placed on strengthening the relationship with existing clients and their partners – I was met with a blank stare. Quickly I began to understand their “pipeline issue”…their product albeit superior was not well supported by a strong network to help spread the word and sing its praises. Particularly when selling a product or service with a long client conversion curve, strong networks to help you groom potential clients and mine referrals from existing clients and their partners becomes paramount.
What’s your network like?
Who are the game changers in your circle of influence – do you know?
Who are the rain makers? Who are the duds?
When was the last time you inventoried your network to determine its net worth?
Where to begin…
Make a list of top 10 people who have referred you business leads in the past year – particularly the ones that have translated to sales or new clients.
Meet with them and ask them the following questions:
How can YOU be a better referral/business colleague to THEM?
What are some pain points their clients /referral sources are seeking to address and how can you help?
Also – most importantly, what is it about YOU that makes them refer you with confidence?
Note all of the above and use it as valuable data to grow your business.
Lastly, most importantly – THANK THEM.
When someone refers you a great business lead, or potential client – take the time to:
Say thank you in a meaningful way (in this age of digital a hand written note definitely gets noticed)
Follow up on the referral lead promptly
Give some thought on how you could effectively return the favor and refer a similar level lead, or resource to the person who has helped you out.
Networking for increased NetWorth is a bit like tennis and you have to keep the ball in play. A stagnant network means stagnant business.
Here’s some additional resources:
How to network using social media
If you find you don’t have the right network – figure out who your target clients or industries are and seek networking opportunities in those areas. Our calendar on MyCity4Her.com is frequently updated with great regional business development opportunities and events. Local organisations such as Chamber, non-profits and trade associations are also a great way to grow your business through a stronger network and referral partners.
Much continued success!