One of the challenges of starting a new business or operating a small business is the ‘on a shoestring’ budget dilemma. So how do you effectively represent your brand, gain new customers and grow your business with little or no money for marketing?
Having come from corporate marketing departments, where I had many hundreds of thousands of dollars each year to spend on marketing activities, to starting my own business and working with much less money has certainly changed my priorities on things that I once took for granted.
One of the answers to the common dilemma of getting new customers with no or little budget is to network and exploit your word of mouth referral channels as much as possible. I know that in Melbourne alone there are networking and business events on every day and night. Some are free to attend and others are paid. In general, a company who wants to sell you something usually hosts the free ones. (Which is fair and reasonable considering they are picking up the bill, but doesn’t mean you can’t make good connections).
Having been to several different types of networking events over the past year, I have formed a number of conclusions about how they work and how to get the most out of them. Here are my tips:
Have a clear idea of what you want to achieve
When I invest the time and some money into attending various networking events, I do so with the objective of making 2-3 good connections from each function. I am still surprised by the number of people I meet who seem to have no purpose in attending. Are they there to meet new clients? To meet possible referral partners? For the sake of your own reputation and the other people attending in order to do business, please think about why you are there and who your target audience is before the function starts. You will get a better return on your time and money spent attending these events by doing so.
Smile and be nice to everyone
Business circles in cities are small and at networking events even smaller. It is also not possible to tell from where or whom your future leads will come from. As such, at these events it pays to be nice to everyone. If you are at a function and find yourself lost for words or are a little nervous, the best tactic is to smile and ask the other person questions about themselves. Most people are happy to talk about what they do and while they are doing this, you have an opportunity to think of some other questions or to plan your exit strategy!
How to join in on a conversation - politely
One of the challenges of attending networking functions on your own is the prospect of introducing yourself to people you have never met. I find this extremely difficult. One of the ways that I introduce myself to a group of people who may be in mid-conversation is to smile and say, “May I join you?” It is a polite way of interrupting the conversation and breaks the ice. Try it - it works for me.
Don’t have too many wines
It may seem obvious, however, I am often amazed at the number of people who attend business-networking events only to have too many glasses of wine. I remember a recent example where a real estate agent joined in a conversation I was having with an associate. He was selling property in an area that I was interested in buying into. Naturally, what he said caught my attention. When I called to speak to him the next day, the properties mentioned and his story had changed. When I spoke to my friend a few weeks later and mentioned what had happened we both agreed that it was a case of ‘too many wines’. I know that I certainly won’t be doing business with that real estate agent.
The difference between SPAM and good follow up
One of the reasons business owners attend networking events is to make new business connections. This often requires a phone call or meeting follow up. There are many occasions where I meet people who I may not be able to do business with in the near future but are a contact for future reference nonetheless. One of the ways I keep in contact is through my regular e-newsletter. I do however; seek permission before I enter a new email address onto my database. The easiest and most cost effective way I have found to do this is to send off an email in the days following the event introducing myself again and asking if we can keep in contact through my e-newsletter. So far, I haven’t had any refusals. It means that I am building up a database of people who I connect with and have asked permission to do so as well.
Being overexposed
I have noticed a recent trend in the networking community for the same presenters to appear at multiple functions. On the one hand, attending and even presenting at multiple functions is a good way to grow your brand exposure; it may also mean that you are overexposed. I have now on several occasions seen the same people present the same content at different functions. My recommendation is that if you are planning on being as exposed as possible, make sure you come up with new and interesting content as regularly as possible.
To become a member or not?
There are a number of networking functions that I go to which have the option of a 12-month membership. These often appear quite lucrative with bonus gifts for joining up. So far, I haven’t joined any particular group and have preferred the option of pay per use. My recommendation is to attend each group several times over a few months before making any commitments. These groups can take up a lot of your time; therefore it is advisable to your research before you join to ensure you can extract benefits from being a member. Even if the free DVD player option may be an appealing birthday present for your mother-in-law!
Networking can be an effective and inexpensive way of building your brand, lifting your profile and attracting new clients. It is part of the marketing strategy for my business and had been a good source of new and potential customers. As with most things, you can have too much of a good thing so my own personal promise to myself is that I don’t become someone who is over exposed and known for spamming people that I meet.
Kept in moderation, networking can be an effective way to grow and market your business on a shoestring!
Good luck networking and building your business!
1. Recognise the importance of networking
Ask any successful business person and they will tell you that above all else networking skills are absolutely vital to grow your business. Networking can increase your market share, help you gain new ideas, provide work and perspectives on life and business. Speaking to one person can potentially give you access to over 200 clients and suppliers.
2. Aim to become visible
You need to let others know you exist and what you do by becoming highly visible and being set apart from the crowd, which is what good networking skills can provide. Be seen and get known. Look for interesting events to go to; clubs, associations, meetings, seminars, conferences, presentations, breakfast briefings, lunches, or start your own networking club.
3. Take care of your image
To have success in networking you need to maintain your self-esteem and build your confidence. Consider how you dress, speak and maintain your body language; aim to present a professional, positive image.
4. Always be positive
By having an open “can do” attitude and having the belief in giving and sharing as well as offering assistance your reputation will soon grow.
5. Treat all events as networking
Going into a specific networking event you may experience fear and trepidation but there is also the thrill and challenge of who potentially you might meet. However we all have all sorts of events we attend which are in effect networking ie meeting people to build mutally beneficial relationships. The networks we belong to can include schools, colleges, work, social life, small businesses, corporate businesses, family, neighbours, advisors or the church.
6. Build your relationships
You need to project an excellent image of warmth, approachability, understanding, knowledge, empathy, and an ability to engage with anyone.. Don’t forget your most powerful contact might not be the most useful to you. Above all be genuine. You should take an interest in everyone you meet, remember their name, listen acutely to them to understand their needs and how you could assist each other. Tact, reassurance and the building of trust are also the hallmarks and vital components of relationship building. Be relaxed and stay interesting.
7. Develop the ability to “small talk”
Being able to talk to anyone about anything is a valuable skill in its own right and essential in networking. Being able to initiate a conversation means you are more likely come into contact with people who may well turn out to be invaluable contacts. Small talk can be difficult but have a few stock phrases up your sleeve such as “How did you get started in…..?”, “What do you particularlyneed to succeed?” “Where are you going with it next……?”
8. Develop active listening skills
Networking is not about selling it is about listening to the other person and showing them you are interested in them by active listening. Allow others to open up & talk freely. Give you’re your undivided attention even if it is only for five minutes. Take an interest in what’s said and acknowledge this by nodding or agreeing. Use positive body language such as facing them with lots of eye contact. Used subtle mirroring techniques (body language copying) to develop rapport.
9. Use your business card
With the many people you meet this is the only way to maintain the initial contact. 90% of businesses have no card and only 25% have a card that is up to date and informative. At the very least your own should have on it your name, address and phone number and ideally your email address if not your website. Try to include on the back your skills focus to help others identify what you have to offer. You should also create a tracking system to identify and remember all those who you meet.
10. Be organised
Keep a written list of everyone you know and everyone you meet and what they do or keep a database. Write memory joggers on the back of business cards. You may find it useful to keep a diary of who you meet and where and any mutual contacts for future reference.
For more details phone Sandra Beale on 07762 771290 or email info@lightningconnection.biz. Website: www.lightningconnection.biz