Aligning yourself and your company with other entrepreneurs is a sure way to encourage growth - but don't expect it to happen overnight, says Steven Krauser, founder and president of Network Associates, a New York-based networking organization. Successful networking takes a willingness to give information, ideas, resources and leads - without the expectation of a quick return, says Krauser. "It takes time to build a relationship, but the payoff is tremendous."
According to Krauser, networking is the single-most powerful tool for business development. "As business owners, we are aware that we have two full-time jobs. First, we must maintain the business that we have and keep our existing clientele happy. Second, we must increase our market share by selling to new people." He says networking provides you with the opportunity to work smarter, not harder. "If you utilize the people in your networking group for the purpose of providing immediate quality solutions to problems that they have, you have tapped the power of networking. Moreover, you have been able to provide new business to someone in the network," he explains.
Krauser speaks from personal experience. Before starting his latest venture, he transformed his previous business, U.S. Coffee, from a small distributorship to a huge, nationally recognized leader by practicing networking theories. "In the office-coffee-and-refreshment industry, typically cold calling is the marketing effort of choice. Once we embraced the concepts of networking, our business began to explode. We were introduced to larger, more profitable business accounts, put into situations that provided less time telling people how great we could be, and more time focusing on how we could provide solutions to their real needs," explains Krauser.
He says many small business owners don't want to network because they think it's about shoving their business card in someone's hand and boasting about what they do. "Small business owners should approach meeting people using two goals: Get to know as many people as possible, and get them to know you," advises Krauser, who recommends a four-step approach to networking.
First, give and get information. "Networking is a two-way street," he insists. Next, evaluate the value of the contact. "Once you have the preliminary information, you need to decide if this person is worth meeting again and creating a relationship with." Third, form a strategic alliance. "Remember that the purpose of networking is not to get your contact's business; instead, you're trying to get introductions to everyone this person knows." And finally, Krauser says, networking maintenance is essential. "As your contact base grows, you have to reevaluate the people in your information loop," but he quickly advises, "Be careful never to burn bridges; you never know when someone will be able to help you, or when you will be able to help them."
"It took me quite a while to settle on networking as a business-development tool. You must be willing to participate and put the time in to get to know folks in your network. You must also give without the expectation of return, and you'll get back much more in return then you ever gave," says Joseph M. Heaney III, president of New York-based Walden Associates, Inc., an environmental consultant firm.
Ira Krause, managing director of New York-based IHK Consulting Group, a management-consulting firm specializing in family-owned businesses, has also implemented these theories with success. "Networking has enabled me to successfully market our services without really resorting to standard marketing tactics: no mailings, no fancy brochures, or any of that. My marketing consists of speaking with members of my networking circle," says Krause. "We share ideas and information about business, and the result is that they, their friends, their clients, and in some cases, their competitors seek the advice and counsel of my firm."
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