Chilli Tips #5

Networking - make it work for your business

By Nitin Dahad

When you receive an invitation to attend a 'networking' event what does this mean to you, and do you normally get the most out of it? Here we take a look at networking from the point of view of how it can benefit entrepreneurs, and identify some of the commonest mistakes people make when they go to such an event.

Many networks to choose from

Go with a purpose

Etiquette at the event itself

Beyond the network event

The true benefits of networking

Many networks to choose from

There are many professional networks that you're likely to come across - from the most well publicised one of our internet age, Ecademy, to newer ones like Cityzone. Your local chamber of commerce or business link will also hold networking events, as do the universities.

Most likely you've seen some on The Chilli's events page. Our analysts attend many of these networking events, either as media sponsors, panellists, or simply as attendees. From the European Technology Forum, to The IndUS Entrepreneurs; from the global Silicon Valley Association of Startup Entrepreneurs to locals like the Hertfordshire Business Incubation Centre, or whatever is in your region. Then there are the networks around clusters, such as the Cambridge Network and Cambridge Hi-Tech Association of Small Enterprises.

The listed networks are just a small sample of what's available to the entrepreneur today, and sometimes it is difficult to know where to turn. But if you follow simple rules and objectives, then the task becomes much easier. As entrepreneur John Dale of Stevenage, Hertfordshire, based KeCrypt put it, "When you're small, you are cash poor and time poor. So you have to be time efficient. We often go to networking events to seek potential funding sources for the company, but end up talking to people who are trying to MAKE money from you - like accountants, solicitors, PR and marketing people."

Go with a purpose

That's why it's important to go to events with a purpose. Identify your needs. For example, are you looking for:

1. funding?

2. strategic alliances?

3. hiring staff?

4. building awareness of your company?

5. promoting your products or services?

Once you set out with a clear set of objectives, it becomes much easier to achieve your task. Many people do not do this, and go with an attitude of, 'let's just go and see what turns up'; such an approach does in fact lead to making your attendance a waste of time - unless of course all you want to do is collect business cards.

Before you get to the networking part, you need to identify the relevant event. This is now so easy to do, with a wealth of information available via the Internet. But information overload means you might end up wanting to attend too many events. So it's often useful to start by selecting those recommended by people you know. But don't forget to ask them if they achieved any of their objectives from it - this might give you an indication of how successful it could be for you.

Look at the web site of the organisation, look at what their objective is, who's behind it, how long they've been going, and the number of members they have. Often, not all this information available, so sometimes you need to send a query via their web site, call someone up (if they have a phone number!), or just turn up to the next event. The co-ordinators of the networks are usually very good at telling you about their mission or charter, and a few minutes of conversation sometimes helps.

For example, a call in advance has the benefit of bringing your needs to the attention of the co-ordinator. One who's good at running a network is likely to be aware of people who could be of use to you, and connect you at the event. Many of the web based networks help you to focus very effectively on this aspect of networking by requiring you to fill in your business or other requirements on the web site so that others can openly see what you're looking for and then connect with you if they can offer you something that matches your requirement.

Despite the abundance of online networking opportunities, face-to-face interaction is what matters most in 'closing the deal'. That's why networks like Cityzone and Ecademy mix online with live events. Cityzone has what's called its 'dance card', which involves publishing the attendance list online prior to an event, and attendees nominating up to three people for their 'dance card' whom they would like to meet. Attendees' dance cards are published at the event itself, helping people to link up with each other.

Etiquette at the event itself

When you get to the event, always remember why you're there, and be careful not to confuse it with a night out eating or drinking with your friends. As an entrepreneur, you already know about working all hours; the networking event is therefore not the time to let your hair down, it is still working time.

You are an advertisement for your company, an ambassador, so you must remember to observe the same type of etiquette as you would at an informal business meeting. Take lots of business cards. You must polish up on your 'elevator pitch' - the one or two sentences that sum up your business. Tell it well, and learn to sound enthusiastic and optimistic about its prospects. Nobody will take you seriously if you don't.

Seek out the people you require, be ruthless about moving on if there's no connect between you and the person you are talking to. It is possible to be ruthless, without being rude. The game is all about finding what you want in a short space of time. And if your main objective is raising awareness, then there's all the more reason to treat it like a race - get round to everyone to tell them what you do or what you are looking for.

You'll be surprised how word gets around very fast. And if you generate lots of enthusiasm it gets around even faster. That's how to build brand value while networking. It works and can work spectacularly in raising a company's perceived worth (ie, goodwill), as this author has experienced.

Beyond the network event

After the event, it's important to follow up. When large companies go to trade shows, they make a point of collecting the cards and following up with RELEVANT information to those who visited their exhibition stand. Some even send the e-mail out directly from the trade show back to the office, which triggers the sending out of a brochure immediately, so that the visitor sees it on his desk when he or she returns to the office or lab.

Going to a networking event is the same. Follow up with a relevant piece of information or request. It may also help to personalise the message with some relevant comments about the conversation or topic discussed. Remember, if you have met 20 or 30 people in one evening, it would be difficult to remember them all, so pointers are very useful to prompt or jog the memory.

In the late 90s, this author was caught up in a wave of 'beaming' contact details to each other's electronic personal organisers at networking events in silicon valley; by the time you get home, you sometimes could not put a face or remember what the topic was, so take care to make some quick notes at the time. Using today's more sophisticated pda (personal digital assistant), you could even beam your brochure to the other party at the event itself, or send the contact details via your smartphone back to your office or admin assistant to mail out a printed fact sheet or flyer!

The true benefits of networking

Like all things in life, attending a one-off networking event is unlikely to have the impact on your business that you might expect. Networking is about building a whole set of connections, which might take time or several events from different networks. Derek Williams of the Stevenage Business Initiative said at a recent networking event, "As time goes by, your influence over different networks begin to connect, and it is at that point that it becomes powerful. The trick is to plug yourself into several different networks, and then they start to interact."

What this means is that the interaction of forces and the influence you start to have at all the different networks can then start having an influence on your business. So networking can enhance your bottom line - but you have to work at it, and treat it like proper work and it will start working for you.

And finally, be careful not become a 'networking junkie' - for some people, networking becomes a social habit and you end up seeing them at all the events. They are just passing time and enjoying the social atmosphere. Take advantage of this, they could be useful for you, as they have some spare time which you could utilise.

Any comments on this article? Email the editor at Editor@TheChilli.com

© Chilli Publishing Ltd 2003

06SEP2003