Networking for Entrepreneurs

FountainBlue conducted a Special Workshop on Networking for Entrepreneurs, which addressed one of the greatest challenges of any successful new venture: meeting the right people and developing relationships and partnerships with those people.

Sometimes the difference between a successful venture and one not so successful is who you know! Entrepreneurs, particularly those who would prefer the comfort of coding and managing in front of a computer screen, and those who don't have connections here, and/or are not yet integrated into the Silicon Valley culture, need to proactively manage their networking activities to ensure the ongoing success of their organizations. Below is a Summary of Notes and Advice provided by Linda Holroyd, the event facilitator and everyone in attendance.

Working Definition: Networking is: An Active process of building and managing productive relationships with all of your contacts (Professor Wayne E. Baker from his Networking Smart Book)

Networking for Entrepreneurs can lead to

• Better Traction for Your Business
• Greater Likelihood of Attracting Leaders, Sponsors, Advocates, Customers

The Art of Networking:

• Everyone has his own style
• Reasons for a successful connection vary depending on who you’re working with
• Random chance is a factor
• Sometimes you find your connections in the strangest places!

The Science of Networking:

• Understanding your objectives and developing a plan will increase your probability of success
• The more you build your network, the more likely your network will continue to grow
• The larger your network, the more likely you can leverage it to serve your needs, and that of others in your network
• The better you plan and prepare, the more likely you are to succeed

Why is Networking with Executives More Important Now?

• Resources are Scarce
  Access is Limited
  Credibility is in Question
  Difficult to Build Relationships at the Senior Executive Level
  Rapid Technology Advancement
  Fast-Paced Work Environment

Networking Tip: Know Your Objectives

• What is your networking objective?
• Why is this the most important challenge right now?
• What are some past successes and challenges?
• Who would be some strategic partners for you?
• What are some metrics for success and their timeframe?

Networking Tips:

• Your Reputation Matters: Be professional, Be courteous and gracious, Be thankful, Be helpful
• Develop a Strategy and a Plan: What would you like to happen? How will you leverage your partners? How will you present your challenges and opportunities in the most attractive way? What individuals or organizations do you need to connect to and what is your plan for getting the introduction?
• Follow Through: Plan your work, Work your plan, Be prepared to take advantage of serendipity
• Build on Successes: Networking is for life, not just for the objective you set for today
• It’s Not All About You: Just as important as what’s in it for you is what’s in it for the other party

Tactics generated by the group:

Conversation Starters - Suggestions for breaking the ice and join a discussion comfortably and professionally

• Focus on the event theme/partner/sponsoring organization: What brings you here? How long have you been a member?
• Compliment
• Direct introduction
• Ask a third party to introduce you
• Ask questions about the other person or get them talking in other ways
• Offer a business card early
• Start conversation on news of the day
• When entering into an existing conversation: Ask questions about the topic, Listen and then respond with a relevant comment, Ask if you can join, Offer and ask for business cards

Linda's Bottom Line:

• Focus first on the other person. The more you get them talking, the more interesting they think you are.
• Focus second on what kind of connection or information could help the other person.
• Then focus third on how developing a relationship with this person can help you.

Elevator Pitch Topics - Suggestions for communicating your value-add passionately and flexibly to a wide range of audiences

• Practice, but sound natural
• Be concise and short
• Be memorable
• Tell people what you do, what you want, what you're looking for
• Make it relevant

Linda's Bottom Line:

Follow this suggested format to make a 2 minute, 30 second and 10 second introduction
For _____ (target customer)
Who ____ (the need or opportunity)
The _____ (your product or service)
Is a _______ (product/service category)
That ____________ (statement of key benefits or compelling reason to buy)
Unlike __________ (primary competitive advantage)
Our service _________ (your key differentiator)

• Frame your introduction to the needs of your audience and their needs
• It's best to hear what the other person does first so that you can frame the discussion and focus on them.

Rapport Building Ideas - Suggestions on how to build deep relationships

• Listen
• Identify common interests
• Sincerity
• Empathy
• Be knowledgable
• Be helpful
• Say what you'll do; do what you say
• Make connections to others in your network
• Maintain your professional reputation
• Communicate your value-add well (see elevator pitch)

Linda's Bottom Line:

• It's all about relationships. The business strategy, technology, operations, everything else is secondary. Act accordingly.
• When you network, decide early how deep a relationship you would like to have with each person, but don't cast it in stone. I have five layers of relationships I develop. Your strategy on relationship-building from follow that objective.
• Nobody's perfect, if you've botched a relationship, work to repair it. If you relegated someone earlier as a superficial relationship and they turn out to be someone different in a positive way, you always have the opportunity to deepen the relationship.
• Never burn bridges.

Disengaging Professionally - Suggestions for disengaging a discussion during an event

• Diversion
• Focus on doing one thing for the other person
• Summarize the conversation
• Say that you'll follow up (and do so if you say you will!)
• Address their immediate needs

Linda's Bottom Line:

• During networking events, people generally expect to 'circulate'. Don't feel bad when you need to do that.
• Always be professional and respectful. The other person may not be someone you want in your network now, but people change.

Following Up - Suggestions on how to efficiently and effectively follow up

• This is rapport, part 2
• Follow up quickly and effectively; using templates help
• Most people don't follow up. You stand out when you do, and you're more likely to get a positive response even months later if you follow up immediately following an event
• Creating marketing materials like web site, blog, etc., will help you efficiently follow up

Linda's Bottom Line:

• Always follow up, unless you consciously choose not to
• Prepare your materials ahead of time to ensure efficient follow-up

For comments and follow-up, visit
http://rainmakerslive.nusea.org/2006/10/23/fountainblue-networking-workshop/.