How To Network Effectively

In addition to the definition of a technical network, the definition in the Oxford English dictionary is:

To interact or engage in informal communication with others for mutual assistance or support.

Networking is the art of making and utilising contacts by sharing information between them. The goal of networking is to create a pool of people and information that can help you to efficiently 'spread the word' of your product or service and, most importantly, leave your competition wondering how you won business they never even knew was available.

Incredibly, many sales people are reticent about networking because they think it's all about shoving your business card in someone's hand and boasting about what you do. In fact, networking is actually about getting to know people (who, in turn, know other people) whom you can help and who can help you.

Networking expert Steven M. Krauser, President of Network Associates, (a USA based business development group for entrepreneurs, business executives, and sales and marketing professionals), contends that most business people do not know how to make networking an effective business tool. "If the result of your networking is a stack of business cards in your desk drawer and not a lot of additional business, then it may be time for you to re-evaluate your methods," he notes.

Krauser says sales people should approach the meeting of 'unknown' people using two goals: get to know as many people as possible, and get them to know you. He then recommends the following four steps to make your networking work:

1. Give and get information
Networking is a two-way street. When you meet someone, you should plan to ask him or her about their business and tell them about yours. Start with the basics - name, company, affiliation, position, nature of business, etc. You should next find out if you can benefit each other. Try covering these topics:

• What does your company do?
• What types of clients do you serve?
• What effect does your product / service have on your customers?
• Who makes the buying decision within a firm for each of your services and/or products?
• What sets you apart from your competition?

2. Evaluate the value of the contact
You can't network thoroughly with everyone. Once you have swapped preliminary information, you need to decide if this person is worth meeting again and investing in to create a relationship. Can you help them and can they help you? The answer should be 'yes' to both.

Another criterion is to look for people who are truly interested in helping others solve a problem, no strings attached. In other words, don't think of yourself as a networker but as a problem solver, and look for those same characteristics in someone you will consider adding to your personal network.

3. Form a strategic alliance
A network is not a collection of business cards, but of people. Take the time to understand the business of those in your network. If you have chosen members wisely, this should be a pleasure. And make sure that you educate them completely about what you do and with whom you do it. Give each other updates and encouragement. In effect, you become each others' sales people / introducers.

Remember that the purpose of networking is not to get your contact's business; instead, you are trying to win business from people that your contact knows. Ensure your network contact understands this as they may be reluctant to take calls from you if they imagine you are constantly chasing for business from them!

You should also be able to turn to those in your network for management ideas, advice, leads, even vendor recommendations. You will learn from each other and contribute to each other's growth, both in terms of profit, knowledge and performance.

4. Maintenance
As your contact base grows, you will need to re-evaluate the people in your information loop. Practice effective time management skills and prioritise your contacts. You should aim to get in touch most often with those that can be most useful to you. They will become your 'inner circle'.

Be careful never to burn bridges; you never know when someone will be able to help you, or when you will be able to help them. If you feel as though someone is not useful to you right now, you should still aim to check in with them from time-to-time because they may become important in the future. You could even stay in touch with these contacts from a distance by sending an informative 'thought for the month' type e-mail to ensure you stay in their minds. In other words, be nice to everybody because you never know where they will show up next.

The ability to create and maintain strong professional relationships is an important key to business success. Networking is the vital business skill that lets you cultivate lasting business relationships and create a large sphere of influence from which you can find new clients, contacts, referrals and opportunities.

If you are starting your network from scratch, make lists - lots of them! Start by writing down the names of everyone you can think of, everyone you know from school, church, social clubs, old jobs, associations, friends, neighbors, relatives and so on. You should have approximately 500-600 names on this list.

After compiling this list, exercise some judgement in dividing it into three categories. This list will include potential customers, leads to potential customers, and both. Next, take each potential customer list and divide into three categories - high potential, modest potential, and low potential. You will now have 9 cells of categories.

Call those on the high potential list, or send a personalised letter and then call to follow up within 5 days. If you have more potential customers on your list than you can conveniently call within 5 days, send letters in batches and allocate time to call. Those who are on your modest potential list, send a letter and brochure - if you receive no response, send another letter or an e-mail (only) as a reminder after 2-3 weeks. In another 2-3 weeks, send another letter or e-mail. Follow up with a phone call ONLY after working through your high potential list. Those who are on your low potential list, leave until last and simply send a letter or e-mail explaining what you are doing now. Follow up by phone as and when you can or invite them to subscribe to your newsletter / regular update e-mail service.

The following steps will help you to cultivate long lasting business relationships:

• Clarify your objectives and then make a plan: you cannot form special relationships with everyone so you have to be selective.
• Go to business events, conferences, training days, exhibitions and any event where business people are gathered. You will not build a lasting network from your office desk.
• Be prepared when you go out to meet new people. Have your diary, a pen, business cards and literature with you and know what questions you want to ask. Start by asking them what their business does but also remember to listen. It is only when someone else is talking that you find out anything new. Ask for their business card and then offer your card.
• Follow up your new contacts promptly when you get back to the office with a short e-mail -"………It was nice to meet you. I enjoyed our conversation. Let's stay in touch. Can we meet?……….." etc.
• Be a resource for referrals yourself. Be armed with contacts and useful information to give to others. This will encourage a two-way flow and people will be motivated to help you. If you can't give leads, be a resource for them. Send them news or tips that may help them.
• One goal of networking is to get referrals, so don't be afraid to ask "Who else should I be talking to?" / "What do you recommend." People enjoy being asked for their opinion and will feel good if they have been able to help you.
• Thank your contact for any introduction which results in a meeting and keep them updated - especially if your meeting results in business.
• Establish yourself as an expert in your field, perhaps by writing articles or by being available to talk to journalists. If you and your business are in the news, people will want to talk to you.

Always network. Wherever people are gathered together is an opportunity to network. It doesn't just have to be a business situation. Most people at weddings, on planes and in hotels have jobs and know people! However, subtlety is required, so build rapport first, then ask questions and don't talk business at a social event unless your contact encourages it - arrange to meet up subsequently. Learn to establish rapport instantly. Treat everyone you meet as potentially fascinating, which they are, if your attitude is on straight.

Sign up to a few relevant online networking groups. These groups exchange ideas in online forums or via mailing lists. They often have 'real' events where you can meet face-to-face. Ecademy is probably the largest online network and is excellent value for money. For Institute of Directors members, the breakfast meetings are a superb way to network - we have experience of both Kent and West Surrey branches and both are particularly well organised.

Organise your network data thoroughly. Most people's memories are not reliable and paper organisers are limited. Electronic organisers and databases are ideal for holding and retrieving network detail effectively.

You can use a network for just about anything from finding a new source of supply to getting introductions to overseas sales agents. You can find a reliable bank manager, a new accounting software package that is right for your business, a great venue for your next business meeting or a fantastic, family friendly holiday destination. Your network contacts, unlike almost everyone else in the business world, are usually unbiased and authoritative. You should make few major decisions without recourse to certain network contacts.

Action Checklist

• If you don't have at least 200 people in your network database then you don't have enough. Start networking again
• If you are still using a paper diary for network data, change over to an electronic organiser
• Use your network to help with your next big decision
• Attend your next trade event and aim to speak to at least 10 people
• Walk right up, smile, give a firm handshake and introduce yourself. Don't wait for people to come up to you. Be proactive.
• Positive conversation is important. Few people enjoy talking to strangers and it is often listed in the top 10 of most frightening experiences. The best way to start a conversation is to either ask an open positive question related to the environment or person or make a positive statement about the environment or person. Then follow it up with an open question requesting an opinion, feeling, or response from the other person about the environment, an activity, or situation at hand - the rest is easy.
• Keep moving! If someone clings to you, say, "I know you're here to meet as many people as possible, so I'll let you mingle."
• You are not there to talk, tell about your product or sell, but to listen. You will then follow up with those people later. These meetings are for light initial contact - and who is more intelligent, perceptive and interesting, the person who talks or the person who listens to you?
• Identify one or two groups to attend regularly. Get to know the members so you can refer business to each other. Give if you want to receive. If you cannot give leads, be a resource for them. Send them news or tips that may help them. If they are looking for a new sales manager, keep your ears open for one.
• Sweep other meetings. Go to a variety of meetings, even to ones outside your normal interest occasionally. Who are you looking for? The obvious is new clients, but do not overlook the key contact that themselves has a wide and cherished network and thus may open other doors for you.
• Go alone and sit with people you do not know. Agree with existing contacts to meet up after the networking event, unless you can introduce each other to potential clients by sitting together.
• Practice describing your business in two sentences & memorize them.
• Keep a pen in your pocket.
• Get to know the movers and shakers in your network groups. Each association has a few key people that coordinate events and who knows everybody else and can make things happen.
• Ensure your name tag is worn on the right side to provide an easy sight-line to your name when shaking hands
• Use good body language. Begin by learning to maintain good eye contact. Start by looking at a spot just above and between the other person's eyes. This may seem awkward, but it works. The other person does not know you are looking there instead of in their eyes, and you will not seem to glare or stare.