Networking for New Business Owners: a Beginner’s Guide

For new business owners, the idea of networking may induce increased heart palpitations.  I understand the feeling well.  The pressure to craft the perfect 30-second elevator pitch is tremendous.  The feeling that any cracks in that pitch will cause the sale to fall apart before the discussion has begun is heavy.  So how is a new business owner supposed to navigate networking?

Definition

What is networking?  Simply put, it’s an opportunity to share your business AND learn about others.  Networking is a two-way conversation.  If you approach networking with the ‘all connections must benefit me’ attitude, the people you interact with will feel manipulated and ultimately disengage - with their brains, if not their actual bodies. 

I remember an interaction at a local grocery store.  Details aren’t necessary, but the ultimate result was me feeling like I was a ‘mark’ for this person for the express purpose of roping me into their business venture.  Perhaps I was oversensitive, but it left a negative taste in my mouth for the one-sided nature of their networking tactics.  We are naturally excited to speak about our business, but we should be mindful that we don’t spin the discussion exclusively towards our corner. 

Purpose

Why can networking be important to your business?  Is it a client development strategy?  Being visible in the same place as your ideal clients?  Are you looking for business owners also making their way.  Operating a business can be a solitary endeavor.  Having people to workshop ideas with can be hugely beneficial and move you along quicker.  The other purpose for networking is to increase your professional development and education in your industry.  If continuing education credits are required, networking within that association or credentialling agency makes a lot of sense.  Finally, networking is a great method to round out your circle of professionals.  What expertise can you benefit from that doesn’t come from either customers or competitors?  Networking can provide all of the above if you so choose. 

Approach

If you understand why you want to network, then that will inform the strategy you create and implement.  If you are seeking out clients, you are likely tracking the volume of people you are meeting.  What is the number of people you need to engage that will convert to new clients and regular revenue to meet the business obligations?  Stated differently, what is the average conversion rate for your industry for these types of meetings?  Ten percent, 20%, or 30%?  If you know that on average the customer conversion rate is 30%, and you want 5 new clients a month through networking, then statistically, you need to meet a minimum of 15 people.  But it doesn’t stop there.  Do you have capacity to identify and meet 15 prospects a month?  Remember, some of these meetings will happen with intention, but others will be organic; both parties happen to be in the same room at the same time.  Harder to plan those opportunities and a lot more to manage.  This is why networking should be one of a few business development strategies.  The other way to track your networking efforts requires a lot less math.  Who are the professionals you want to meet?  Make a list and keep an eye out for those folks through online platforms like LinkedIn or Alignable.  Chambers of Commerce in your city or county can be excellent opportunities to meet other business owners, and just the professionals you were seeking. 

Finding the right room and messaging requires testing to determine the appropriate audience.  What message resonates and promotes a follow up conversation?  How you describe your business may not engage all people.  Understanding their pain points and challenges will inform your approach and sales pitch to prospective clients.  That elevator pitch will iterate as interactions pass. 

In Part II, I will discuss networking etiquette and maintaining the new relationships.  For now, let me know your thoughts on the first two aspects of networking.  Do you want to workshop your purpose and approach or assessing the appropriate rooms to frequent?  We can help!  There are a few ways to ask questions or receive some initial consultation.  StudioM Open Office hours are held on Monday and Friday.  Monday is for business questions and Friday is reserved for personal finance topics.  You can reserve your spot here.  Sending us a DM on any of our social media or an email at: letstalk@studiomfinancial.net are also available.  Until we meet, keep working on the change.