Network Like an Entrepreneur
Monday April 2, 2007
Last week, Business Week featured an article from Liz Ryan encouraging "corporate types" to Network Like an Entrepreneur. It's worth a read, even for entrepreneurs. My favorite piece of advice from it is one that even entrepreneurs often forget to do:
Be a ConnectorIn a follow-up conversation on MyLinkedInPowerForum (a Yahoo Group for LinkedIn users), Anders Abrahamsson provided the following great insight:
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Connectors are people who don't merely build their own networks but also introduce great people to one another. One of my favorite connectors, Ellen, is a master at the art of finding intersections between her contacts' business needs. She'll hear your story (having trouble formatting a new report, struggling with a difficult supplier in China) and process it. Two days later, she'll send along an e-mail message that introduces you to the very person in her own network who can solve your problem—and quite likely, for whom you can do something useful as well.
Connectors thrive because they actively seek to move the value of their networks from one contact to another. They know—they trust—that this interaction will benefit them, too. Their networking isn't a matter of "help me, right now," but rather of finding common elements among the people they've known for years and the new people they're meeting.
Entrepreneurship IS about networking. It is the lifeblood. So for entrepreneurs to talk "networking" or "sales" or "marketing", you get a dumb face, saying "What are you talking about?"In fact, did you know that for the typical entrepreneur, approximately 2/3 of customers come from direct personal contact, i.e., networking and referrals? Something to keep in mind, especially as you're starting out your business.
Not because they don't know it. No, because it is the question of the total extreme opposite. It is so self-evident that it does not even require a name, badge, title or tag.
"Just did it, have always done it."
Related on About.com:
Comments
All of my business comes from referals. Even jobs I got in the past before I went freelance came to me through a friend. I know there are many people who get their job from community job listings or from employee needed listings on businesses websites - but I have always had to depend on personal relationships for any kind of work be it freelance or employment.
Thomas Hillard, Ekaweeka.com CEO
Networking may disappoint when you lose your job.
I remember hearing a formidable networker who was very disappointed that her network was absolutely no help when she lost her job.
That’s not quite the same thing as is being discussed here (where entrepreneurs cross-refer people) but some people feel that the benefit for you personally of being a great networker may be somewhat exaggerated so you need to be prepared for its results to disappoint.
I would have to agree with both of above comments. Almost all of my business is through networking and referrals. I’m not afraid to recommend someone to someone else and it has certainly come back to benefit me on numerous occasions. There have been a few times when I reached out for some help and got nowhere, but those instances have been far fewer than the number of times people have willingly stepped up to the plate to help me out.
Actually, I think KC makes a great point. The issue here, I believe, is that being known as a “great networker” is not synonymous with having a highly effective network. Consider this — would you rather be known as “successful” or as a “socialite”? There are a lot of people in networking circles who are great socialites, but still not actually all that successful. You’ve seen them… they’re at every event, and yet they always seem to be broke.
I’d make two points about this. The first is that your network is only part of your success equation. You have to have sound business fundamentals underlying it, or else you’re building your network on a house of cards.
Secondly, how many people you know is not nearly as important as how many people not only know you, but are willing to act on your behalf. We call this the “action threshhold”. And one brief conversation and exchange of business cards doesn’t set up that kind of relationship, no matter how great a conversationalist you are.
If you want your network to work for you, work for your network. Spend less time trying to make more contacts and more time doing something useful and productive for people in your network. Given the choice between just talking to ten people or actually doing something useful and helpful for one of them, I’ll choose the latter.
Pay it forward.