As businessmen and women face the challenges ahead, entrepreneurs and small businesses have the opportunity to out perform their large organisation counterparts in terms of survival. The retail sector in particular is one where this challenge is increasingly present, so local retailers need to reinforce their presence and make themselves more widely known.
There’s a lot of advice circulating from a variety of sources about managing costs, keeping a strong grip on cash flow, debt management and not paying bills ahead of the due date to maintain cash flow. All that advice is perfectly logical and is something that small businesses can manage effectively and, in many cases, much more easily than large organisations.
Another equally important ‘positive’ for small businesses is their ability to network for new business among their peers.
Positive and proactive marketing, particularly through networking, is an essential weapon in every small businessman or woman’s armoury. Networking is done face-to-face, allowing immediate and ‘live’ contact with the opportunity to develop long-term and trusted business relationships.
The generally accepted rule - 80 per cent of business comes from 20 per cent of customers or clients, transfers well to the ‘networking for business’ environment. In the current economic climate it is vital that small businesses continue to market and source new customers who will fit into that 20 per cent classification. In the course of networking, the entrepreneur is able to target specific prospects to strengthen their 20 per cent quota.
A useful by-product of business networking is that social networking often becomes a natural extension of the relationships established. As the business relationship develops, so does friendship and the amount of laughter and banter normally associated with an entirely social association but, more importantly, so does the ability to seek expertise and support during the difficult moments faced by small businesses.
There are benefits too for people operating in a corporate environment. Not only can business be gained by networking with entrepreneurs as well as corporate peers, there are opportunities to identify good quality suppliers that otherwise would not appear on the radar. The concept of ‘team’ is now at the forefront of corporate culture, yet despite this there are people employed in the corporate world who feel disconnected. Networking can furnish an environment rich in support on an emotional level that may not have been found by individuals within their own corporate environment.
‘Networking for business’ should be approached as a long-term strategy and not a short-term solution. If you attend a networking event with the aim of establishing relationships and trust, then build on those relationships by returning at regular intervals, you will ultimately gain business – and personal development - from it.
Initially almost all who go out to network for business will experience fear. Many will deny it ever happened to them, but the first time you walk into a room full of people you do not know can be a very daunting experience. The more you do it, the less fear there will be,
until one day you realise that you don’t think about it any more!
The more you experience networking, the better you will become at understanding the unwritten rules of networking. You will learn to read body language better, you will find yourself able to spot the newcomer and ease them into networking because you know people in the room that you can introduce them to. And so the list goes on. There are some tips that may be helpful to remember when networking :
• God gave you one mouth and two ears for a reason – use them in proportion.
• Networking is about building relationships and gaining recommendation and referral. Hard selling to fellow networkers is a turn-off !
• Never refuse any business card, or introduction, that is offered to you. Just because you may not think Joe Bloggs has work for you, he will have friends and associates he could refer on to you. Don’t write anyone off !
• If someone offers you a lead/tip or referral – you must follow it up.
So many people have lost business opportunities because they haven’t followed up on the contacts given to them. Failing to do so also means that that person will never give you another lead or referral again.
• If you work in the corporate world and feel that networking is not something you should do, consider this - every opportunity you seize to promote the organisation that employs you is a step towards securing your job by potentially generating new business or finding more cost effective suppliers.
• When attending a networking event where you don’t see any familiar faces, look for someone else who is on their own and talk to them.
• If you see an ‘open’ group of people, introduce yourself and ask if you can join them.
• When you see two people standing face-to-face in earnest discussion - don’t interrupt.
• Keep an eye open for people who are obviously alone and include them in your group when you can.
• If you don’t want people to join your group, close the circle - most people will get the message.
Finally, relax and enjoy your networking experience and reap the rewards.
Laura Swetman