CHAPTER
5
ALTHOUGH TRADITIONAL NETWORKING HAS always been a priority for successful entrepreneurs, the ability to reach out to investors, talent, colleagues, experts, and other stakeholders has increased exponentially thanks to the development of a virtual networking landscape of social networking. This chapter offers insights into the benefits you can leverage from virtual networking, as well as some words of caution and recommendations on how to get the most traction from it in terms of building a business and a brand.
Let’s start with some of the basics on this invaluable tool. Although you may be already using some of the most well-known social networking sites—Facebook, Twitter, LinkedIn, and Google+—others who are just venturing into virtual networking may not realize just how easy it is to connect with business associates and develop relationships that will further business goals and strategies. Beyond what a physical networking event might do, the virtual world of social networking allows you to connect with people and potential clients whom you might not otherwise meet. Stop and think about whom you talk to on a regular basis. If you are an entrepreneur, you are most likely interacting with people in other states, not to mention those farther afield in other countries. That is really powerful and something that was unheard of less than a decade ago.
The opportunities that this new medium affords serve to fuel your business and career as well as provide a platform for continued growth. Social networking sites understand the need to segment and define categories and channels that enable people to identify whom they are looking for to build their contact list and networking map quickly and effectively. You might even say that virtual networking can serve as a business directory. Say you are looking for key personnel within a company. You know their function, but you might not know their name. Sites like E Factor (see the case study in this chapter), LinkedIn, and Facebook have eliminated the need to search endlessly for these business contacts. You can quickly and easily find out who performs what function and use this tool to craft an introduction and make a connection.
CAUTION AHEAD: WORDS OF WARNING ABOUT VIRTUAL NETWORKING
Along with the ease of virtual networking comes concern about how to use these sites to portray yourself and how to determine the credibility of those you come in contact with while using the sites. For instance, given that it is a virtual world, it is quite easy for people who feel so inclined to overstate their qualifications or connections.
You have to be diligent when reviewing profiles and not get trapped by dishonest people. They only serve to waste your time and direct your focus away from where it needs to be, which is on those contacts in the virtual world who will help propel your business forward and help you meet your growth objectives. That is why it is best to do your homework and do some research on people beyond what they claim on a social networking site before you make a connection. It is often found that the more extensive a person’s profile is, the less important they actually are—something that used to happen with resumes and CVs. However, individuals who are super successful and who are not looking for a job tend to have a more limited profile—that is because they are so busy they do not have time to update their profile every five minutes.
This is not meant to discourage you from virtual networking—quite the opposite. Your business depends on contacts—bottom line. Every opportunity for a meet-and-greet is essential to your business. You never know where a great contact might be found. And with virtual networking, you eliminate one step in your journey to success. Just apply common sense to your approach and use a cautious eye when dealing with unknown people.
Just as important is how you present yourself in the virtual world. You need to make sure your profile and experience are true reflections of your capabilities so you do not misrepresent yourself to others. Despite the distance often involved in virtual networking, it’s still necessary to develop trust through authenticity and kept promises. Think carefully about the information you share and post, crafting an interesting and unique online profile but one that you can live up to in person and when encountering potential new clients and projects. It does not take long for word of a fraud to spread throughout the confines of the virtual networking world; it becomes nearly impossible to rebuild your reputation once your misrepresentation has been uncovered.
Those of you reading this book may already be well versed in the role of an online connection before making an in-per-son contact. Others of you, however, may remember the days before social networking, when you picked up the phone and made a call to see if you could wrangle a meeting or you attended a networking social to mingle and market yourself. Neither approach is wrong; if anything, combining the best of both worlds—online and offline—is the ideal strategy for today’s entrepreneur. Whatever strategy you choose and that works for your objectives, the central tactic must involve making a personal connection. Here’s why.
THE IMPORTANCE OF MAKING A PERSONAL CONNECTION
Just because the world has changed does not mean that virtual networking should be your only tool in the world of business contacts. It is essential to employ an offline strategy as well in order to develop the growth potential of your business fully and deepen the connections that your contacts will have with you. That is why traditional networking, which involves that face-to-face, personalized connection, still plays a pivotal role in today’s world business climate—it has served as the hallmark of business interaction for centuries.
Despite the ability to reach more people in the virtual networking landscape, even with new technologies like video conferencing and Skype, it’s a somewhat superficial connection that is made that cannot match the deeper emotional connection often made with face-to-face contact. When meeting in person with each other, there are non-verbal cues and actions that help you determine the character and position of your networking contact, as well as aid your connections in gauging your character. For instance, being able to gauge a person’s body language, their physical reaction to a situation, the way they look you in the eye, and how they shake your hand can all be helpful in determining whether you feel comfortable working with a certain person. It is also a means of marketing yourself to others in a way that establishes credibility, professionalism, and thought leadership. It is easier to illustrate that you or your network connection is engaged and present in the relationship, which can help shape your strategy on whether the two of you will work together.
Although many of you younger entrepreneurs who are reading this book have been raised on a steady diet of online interfacing and may wonder what we are talking about, your approach to finding colleagues, investors, talent for your business, and, most important, new clients for your business cannot take place entirely online. There must be times where you meet and greet in person, carrying on casual—yet meaningful—business conversations. And these conversations do not necessarily have to be formalized within a meeting or a networking social. Networking has been conducted quite successfully for decades in other places that every entrepreneur should consider within their strategy.
Twenty-Five Best Places to Network
1. Meet-ups
2. Religious events
3. Exercise
4. Hobby clubs
5. Arts
6. Coffee shops
7. Neighborhood groups
8. Pet-related events
9. Conferences
10. Retreats
11. Ethnic- or gender-based clubs
12. Classes
13. Social media
14. Volunteer work
15. Alumni events
16. Trade shows
17. Music events
18. Chambers of commerce
19. Associations
20. Lead groups and networking events
21. Online forums
22. Blogs
23. Toastmasters
24. Speeches and talks
25. Connectors
Source: www.businesspundit.com/25-best-places-to-network/
ON PAR WITH NETWORKING: GOLF, ANYONE? HOW ABOUT A GAME OF TENNIS?
Although the “Twenty-Five Best Places to Network” table lists some of the top networking sites, a personal favorite is the golf course. Sure, many people are out on the links for the sheer joy of it, but when you spot a group out for the day, other activities are usually afoot. By that, I mean business deals are getting done in between holes and along the course. This is because when we have the opportunity to meet, socialize, and engage in casual business talk in an environment other than the boardroom or a chat room, it changes the relationship between the parties. A connection is created that is impossible to duplicate online. Camaraderie combines with serious business talk, as well as frivolity mixed with the ability to make emotional connections.
Say we partner up with a group of ten businesspeople for a game of golf or a set of tennis. Each member brings something to the game. You create a positive atmosphere based on a shared pursuit, but really you are able to use this venue to your business advantage. The talk is informal and you have the ability to gain a foothold with a business contact or secure an introduction through a mutual associate. This is priceless and can spell all the difference when securing financing for a new venture or perhaps even getting that long-sought-after lucrative contract. And in an ever entrepreneurial fashion, there are even businesses that have sprung up to take advantage of networking on the course. Fore Networking started in California as a way to organize networking events on the golf course, combining the love of the game with the desire to network and develop new business relationships. Joining a group like this or simply organizing your own networking events on the course or the court is one way to leverage the benefits of face-to-face networking while having fun.
And, like anything, face-to-face connections can have unforeseen long-term consequences. For example, Adrie played golf off and on with a gentleman for more than twenty years. They had met via business contacts and kept up a social relationship to get together and play a round of golf over the years. This same man went on to become a board member for a major petroleum company. This is a prime example of a contact that clearly might not have been possible simply by trying to contact him through a LinkedIn profile. Someone who had this much power and position would be nearly impossible to ever reach through social networking. After all, high-powered board members have a tendency not to list their e-mail addresses and phone numbers on their business cards, let alone on a company Web site or social networking profile. The point here is that you have to establish and nurture face-to-face relationships to receive value that is otherwise unavailable online.
Then there is the age factor, which is another important factor to consider when assessing the value of an offline strategy. Many important businesspeople who came of age before the Internet do not engage in or use social media—period. The contact from the petroleum company would be a case in point. This means that you have to be flexible and tailor your approach to develop your business connections fully with individuals who might not be as attuned to social networking. If you only focus on social networking, you could miss some very important connections or connectors that could lead to business growth. That is reason enough to look into some of the traditional channels mentioned previously when developing your networking strategy.
MAKING THOSE ONLINE CONNECTIONS
In looking more closely at the online channels for networking, many social media and social networking hubs are important to incorporate in your combined networking strategy. Our last chapter discussed the use of social media and the ways companies use Facebook, Twitter, E Factor, YouTube, and other online locations to increase their market share. Social media was defined as a tool we could use to transmit information to a widespread audience and also as a tool to transmit a message to the consumer via the Internet.
Where social media and social networking diverge is that point where action, dialogue, and engagement occurred within the social networking realm versus social media. Social networking is motion. Simply put, social networking is a verb! It is an action unto itself, whereas social media can be viewed more as a noun because it is more of a place to send and receive messages.
As such, sites like Foursquare, LinkedIn, and Google+ offer the opportunity to engage our customers continually with dialogue, meet prospective clients and colleagues, and network with other like-minded individuals, all to our company’s benefit. Here are some brief descriptions to help familiarize those of you who might be unaware of these key online networking channels:
•Foursquare: Foursquare is a social networking site where people use their mobile phones to note their location and are awarded points when they log in. Users can also gain the status of mayorship, badges, and a super-user designation. Now where your company comes into play is that Foursquare offers businesses the ability to claim their business, create special offers, and connect and engage with Foursquare’s millions of users for free. And we all know there is nothing better than free advertisement and promotion of our product. Therefore, using a site like Foursquare provides startups with the opportunity to connect with potential customers, advertise their sales and merchandise, and get the word out about their venture. Any way you can connect with a potential customer will increase your business presence and develop your brand.
•LinkedIn: LinkedIn enables users to connect with business associates, gain access to shared colleagues, and network within the confines of LinkedIn’s site. You can increase your market share, establish additional business contacts, and develop revenue through a series of contacts made from shared associates. The whole movement of social networking gives entrepreneurs daily access to prospective capital funding, a nest of potential clients, and a chance to broadcast their business and brand to a wide range of people.
We often speak to entrepreneurs about their success with LinkedIn. One E Factor client, who also uses LinkedIn, related how she regularly receives work from recommendations she gets through colleagues on LinkedIn. She noted that these particular projects might have never reached her had it not been for the virtual network she had with her global connections on LinkedIn. Similarly, this is how a startup or existing business can harness social networking and use a site like LinkedIn to further their business. You can easily start with colleagues, former classmates, neighbors, and associates as a way to build a network of contacts. As you develop these contacts, you can watch as the tentacles of connections reach further out and capture a wider audience.
•Google+: Google+ is still an emerging site and its potential for business applications remains uncertain at the time of publication. However, what is certain is the influence of Google. It has become a powerhouse and a force to be reckoned with so that its potential to create a social networking site where you can develop your business is almost certain.
AN ONLINE AND OFFLINE STRATEGY FOR NETWORKING
Social networking sites can be used by developing startups and existing businesses alike. However, caution is still required when using them in a strategy. Be sure to choose wisely. It is not necessary to participate in every possible online Web site, community, and network available. If you do, you are simply spreading yourself too thin and not achieving anything productive by doing so. Multiple sites can be difficult to manage and they will lose their effectiveness without proper updates and maintenance.
Instead, try to focus on two or three sites and then develop your profile fully and engage within those sites. This means updating the content regularly and using consistent messaging across the networking sites. Be sure to set aside time to participate in online events and forums so that you can meet and interact with the people you are seeking relationships with by using a virtual networking strategy.
The same can be said for your offline strategy. You cannot participate in all twenty-five channels and have any time to operate your business or cultivate those new networking contacts. Select one or two channels to participate in offline regularly and then add a couple more throughout the year that could lead to more contacts. See where there are linkages in networking opportunities between offline and online channels. For instance, E Factor is set up to cater to activities in both channels, which could help maximize your networking efforts.
SETTING THE MOOD: A NEW BAROMETER TO GAUGE YOUR BUSINESS INDEX
As new types of networking channels have opened, entrepreneurs must address a need for a new approach and strategy. We have developed a means to connect a company’s relationship to social networking with its value on a daily basis. We coined the term The E Factor Index, which allows entrepreneurs to gauge different moods. Entrepreneurs can assess the mood of their core audience, the market as a whole, and their individual mood.
For instance, we have our members rate their feelings about business on a sliding scale of 1 to 100 every day. Much like the NASDQ or NYSE, it tracks the value and determines whether your stock goes up or down on any given day. This gives entrepreneurs a voice and a way their individual concerns and worries can be heard. Eventually, we hope to publish their number alongside other indexes in the financial papers. This will tie into a real-world application and become a measurable tool for businesses and consumers.
SEEKING OUT STRATEGIC BUSINESS CONNECTORS
Whether you seek them online or offline, one of the best strategies is to align yourself with powerful strategic business connectors. These are people who have their own established and comprehensive networks and open them up to you, working as your advocate to get you connected to others who could help you in some way with your business objectives. It might be connecting you to an investor, a potential client, or a strategic partner. They are willing to do this because they were most likely just like you at one point—a burgeoning entrepreneur—and now they want to “pay it forward.” They may also have an ulterior motive that is really positive—they recognize that by helping you, you may help them in turn at some point and they see it as a way to widen their own network of connections.
Here are some of the ways they can serve as a connector for you. They can connect you to:
1. Coaches. Coaches are excellent contacts because they can guide and mentor you on starting and nurturing your business, including establishing a strategy with tactics and metrics.
2. Experts. You might not be able to do everything necessary to launch or grow your business. That means calling on experts who have the core skill sets to handle certain aspects of a business. Getting connected to the best in a field or specialty area goes a long way toward strengthening the foundation of your business.
3. Unbiased Opinions and Advice. When a business idea is your baby, you can be too close to it and too emotional about it. That is when you could use connections to those unbiased opinions and advice that may help you see more clearly what you need to do or how to proceed.
4. Capital. Whether just starting out or expanding, you will most likely need to tap sources for capital. That’s when it really helps to have some connectors who can speak on your behalf to their contacts. Sometimes, their word alone will get you a meeting and consideration for funding.
5. Other Funding Resources. In addition to capital from investors, you might need other resources, which your connector can direct you to within your community.
6. Peers. A connector may know other people like you who they feel might align with your strategic thinking or interests, helping to connect two people who can compare notes, commiserate, and share ideas to bolster both businesses.
7. Strategic Partners. Sometimes, you need more than temporary experts or counselors to work with, so a strategic business connector might actually be able to line up strategic partners to work within your business for a piece of the action.
8. Top Talent. Finding talent, the most valuable resource for your business, can be challenging. Although a large crowd of potential workers is clamoring for work, there might not be many faces in that crowd that are right for you and your business. Having a connector who can bring you the top of the class and recognize the best talent for your business is an incredible advantage.
9. Potential Clients. Although the access to investors, experts, advisors, resources, and talent is an extraordinary advantage of working with a connector, you need to grow and generate profitability—and, for that, you need clients and more of them in the pipeline. Here again, a connector can bring you clients or point you toward those they think will be interested in what you have to offer.
10. Exposure. Like a walking billboard for your business, a connector can not only get you clients but can help you develop your image, identity, and brand within your target markets. Perhaps they even have expertise related to media, public relations, marketing, and online social media. Being able to connect with someone so savvy can generate the viral attention you are seeking to launch or grow your business.
BRINGING IT ALL TOGETHER
Combining the tools of social media and social networking will unite two distinct yet connected forces to fuel your business and drive revenue. Virtual networking can deliver results and bring an increase in market share and brand recognition while traditional networking can add the personal touch that is so necessary for nurturing new business relationships. Your job is to learn how to merge these two ideas effectively and use each one to its full potential.
KEY POINTS TO REMEMBER
•Virtual networking through LinkedIn, Foursquare, Google+, Facebook, and other sites has offered a much more expansive territory that is ripe with networking opportunities to grow your business and expand your access to funding, information, advice, talent, and, most important, customers.
•You must not sacrifice traditional networking and focus solely on virtual networking. Much can be said for the face-to-face interchange of ideas and the building of trust through handshakes, eye contact, and personal and non-verbal communication. Many deals and connections would not be made online that have been made in person.
•Consider all channels as a networking opportunity—from the golf course to a cross-country flight. You never know whom you will meet and how you might be able to help each other through sharing and collaboration.
•E Factor was designed and developed as the ultimate networking environment for entrepreneurs, combining virtual and traditional networking events and channels to maximize the ability for entrepreneurs to share information, find funding, create projects, launch ideas, and achieve great success.