If you are in business, you must have a strong network in order to thrive. As a chamber membership director for 6 years, I have seen people come and go. One big difference between those who thrive in their business and those who closed their doors has been the ability to network and create an interwoven system of beneficial relationships.
A manufacturer needs dependable suppliers, reliable workers, and robust wholesalers to distribute their product. Retail store need sources of goods, positive relations with neighbors, and excellent customer service. All business owners need some networking skills, but there are three types that absolutely must develop strong personal networking skills to survive.
These types of business people will succeed or fail based on their networking skills: sole proprietors, people in their first sales job, and home-based or direct selling business owners.
Sole Proprietor
The challenge for a first time, one-person business is the sheer number of different skills they must master in order to be successful. They may be a fabulous graphic designer with strong computer and art skills, but they also need to know: marketing, accounting, sales, etc. DaVinci was a genius and mastered many disciplines from architecture to irrigation, but most of us don’t have the time, IQ or desire to become the DaVinci of business. Therefore you need an absolutely reliable source for either 1) learning enough of these skills to survive or 2) where to outsource these activities so that you can focus on your true passion which is what makes you money.
You also need a supportive group of people who understand the unique trials and tribulations of being a micro-business owner. They can reassure you that what you may be feeling is normal. Or they can guide you when you go off track. Your network will be a vital feedback mechanism to help you continue to move in the right direction.
Unless you have venture capital backing, between the two fundamental resources of time and money, you probably have less money than time. You need to leverage every dollar you have. You do not have the resources to experiment with the best and most effective advertising tools. A networking can save you thousands of dollars by providing you with feedback on their experience.
Assuming you’ve bootstrapped like many businesses in the U.S. you’re probably not going to have the money for advertising anyway. You won’t be able to afford newspaper ads, the yellow pages, mass mailings, radio or television. So how are you going to find customers? How are you going to show them the value of your product or services? You have two choices: cold-calling or networking.
First-time Sales Job
Being a sales person is hard. It takes perseverance and a thick skin, especially if your new boss has given you a list of business names, set you down at a phone, and said, “Here, make some sales.” This is sometimes a weeding-out process. One source says there is a 30% turnover in sales jobs. If you do not want to be part of this statistic, you need to make more cold-calls and be the best closer ever (“coffee is for closers”). Or if your soul cringes at the thought of being willing to increase your rejections and harden yourself to being solely about the sale, you can become an expert networker.
By meeting people, making connections, and helping others, you’ll create warm leads. This is where you still may be calling someone you haven’t met, but you know someone they know. Or you’ve been given an insider tip that they are looking for your product. The close rate is much higher. You’ll feel more comfortable talking to a friend of a friend.
The holy grail of selling is the “hot referral” (someone who is ready to buy, you just need to take their order). If you do not have a network, the only way you are going to get these is if your company spends money on advertising. And if you’re working for a local office of a major firm, you are going to get this. Do you think that the company is going to give these hot leads to the brand new salesperson or are they going to the experienced, senior sales person who has done the time and paid their dues? So where else are you going to get these leads? From someone in your network whom you’ve developed a relationship with and who believes in you enough to send you their friends and acquaintances.
Home-based or Direct Selling Business
You’ve heard the saying that you are “in business for yourself, but not by yourself?” For many of the excellent, reputable multi-level this is absolutely true. You are the business owner, with all of the benefits and responsibilities of proprietorship. But the company whose product you represent provides you with materials, advice, training and a very large network of representatives who are learning the product and the business along with you.
Like the sole proprietor, you rarely have a large, national marketing campaign creating business for you. In fact, this is one of the major tenants behind the direct selling industry: the savings on advertising is passed to the consumer. So the only way you are going to make sales is through networking. The company wants to see you succeed, but they cannot do the work for you.
How will you continue to grow your business once you’ve contacted every one of your friends, family, and co-workers? Networking and referrals are the only way you are going to develop a strong team and a reliable income.
About the Author: Beth Bridges is The Networking Motivator™ and creator of the 5 Part Networking Success Plan ™, a simple networking system that can help anyone from business owners to sales agents to college students develop a powerful network. Subscribe to the weekly Networking Motivator Newsletter at www.thenetworkingmotivator.com for a quick boost of networking inspiration, information and motivation.”
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