Benefits of business networking

March 8th, 2010

Business network groups come in many flavours, including;

Local independent groups (often not for profit)
National commercial groups (like BNI)
Trade organisations sideshows (Chambers of Commerce)
Themed network events (women only)

Essentially they all represent the same thing. They are groups of business owners who would like to attract more business. The formats of the meetings vary, though most commonly you get a brief opportunity to stand up and announce your business to the group, and a session to talk to the other members more informally.

Common business networking mistakes

Don’t just assume people are there to buy from you, because they are also there to sell to you. If you show a little interest in other people then they may show a little interest in you.
Don’t try and hard sell people straight away. The most successful relationships (like any relationship) take time to build. The more effort you put into building relationships with people, the more likely they are to do business with you. It might take 4 visits to the same networking event or it may take 40 to begin earning the trust of other members.
Don’t assume that your total potential opportunity is limited to the people in the room. It’s not uncommon to make one good contact at a networking event that will go on to recommend many of their own friends, contacts and customers to you in the future.
Don’t be scared. Being scared takes many forms, the very worst being an inferiority complex. There is nothing worse at a networking event than to have somebody trying too hard to impress you with their success. Everybody is in that room because they need more business. I would also say do your best not to be shy. Being shy is more forgivable and endearing than being a schmuk however, and shyness will fade in time as you make friends and build your confidence.
Don’t assume it’s not for you. There are very few tradesmen at the events I go to, but the ones that do attend seem to do very well. You do not have to wear a suit or read the Financial Times to fit in.

The benefits of business networking

Leads leads leads leads leads! That’s why most people are there. You may pick up the business of another member, and you may even find that members start recommending you to their contacts.
Starting a business can be quite insular. Attending networking events gives you a connection to the outside world, and can give you a bit of purpose.
The more people you meet, the more likely you are to spot opportunities you otherwise wouldn’t have been exposed to. Maybe you’ll bump into somebody who offers a complimentary service that you hadn’t previously considered.
Learn from other members. You’re all business owners, and whilst you offer different products or services, you will often hear tips, tricks and tactics that can help you run or improve your business.
Meet nice people. Networking groups are a rich diversity of (largely) hardworking, honest and friendly people. Sure not everybody there will be to your taste, but you don’t have to make friends with everybody you meet. As I write this, I’m playing squash tonight with somebody I first met at a networking event a few years ago, who also attended my wedding. Another member of a group gave me a few squash lessons to get me started. I would never have met these people otherwise.
Build an army. Business owners tend to be quite skilful people in their own field, often in an area that you are not. It’s very handy to have a list of contacts you can call for a little information on a specialist subject. If you are willing to help others, they will be willing to do the same.

There are no guarantees that business networking groups will work for you. Some people just don’t have the personality to make it work, and some people may find their business is a bit too specialist. Most commonly however, it’s lack of vision, patience and effort that leads people to drawing negative conclusions too early. You should definitely give it a try before discounting it, but only try it if you are willing to commit to becoming an active group member for at least a few months.

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What is the most important characteristic of a startup?

by: Thomas

March 3rd, 2010

“A start-up is an organization built to search for a repeatable and scalable business model”

I read this sentence in an article last week and couldn’t agree more. No business is set up with all the right answers. Most business owners already have an idea for a range of products or a service, but that’s just a starting point for a series of discoveries you will need to make on your journey to profitability.

Let’s take a fairly simple sounding business like selling cooked jacket potatoes in the street. At the heart of your model is of course selling jacket potatoes but it’s the subtleties of your model that will help it thrive. How will you price your potatoes? Charge too much and you will put people off, charge too little and you won’t have enough profit to serve quality food and establish a reputation and repeat business.

Where you setup in the street could have a profound effect also. 50 yards down the street or further up the street, next to popular stores or away from (or next to) competitors could make all the difference.

What quality of potato will you sell, what toppings, what packaging, what sauces, will you pay staff minimum wage, or will you pay a bit more and go for service with a smile? What other items might you sell to compliment your potatoes (cans of drink, tea, soup, stew?). How much will you spend on your stand? Could you create an area for people to queue when it’s raining or windy?

Here’s the rub. You can’t have all the right answers to the above questions when you start out. Even if you already own a profitable potato stand, your next one will be subject to a different crowd, different staff, and different competition. Even if you find a model that works today, there’s no guarantee that circumstances wont change tomorrow.

So the point I’m trying to make is this:

There are many potential variables that can be the difference between making a loss and a good profit. It doesn’t matter whether you are a potato stand, card shop, accountants or IT company. As a start-up, your job is to create a structure whereby you are able to identify, test and measure variables until you are sure you have found the best (or at least a profitable) combination. Picking one set of constants is akin to picking lottery numbers. You’ve got to start with something, but you’ve got to be smart enough to vary it.

Here’s a link to the original article where I read the quote in the headline.

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Finding a gap in the market

by: Thomas

February 24th, 2010

There are lots of self titled business guru’s that want to tell you the path to success is to offer a new (or radically different) product or service.

“Create a new market, and be the first”

Well, that’s exciting listening for all those people that happen to have a new (or radically different) product or service, but what about all those potential, new or existing business owners that don’t? What if you are a really good bricklayer that’s had enough of working for somebody else? Does that mean you shouldn’t go it alone?

Of course not! Whether you are setting up an accountancy, sandwich shop or builders, there is almost always a gap in the market for another good one. You probably won’t become the largest company in your sector without doing something substantially different or new, but hey, there is enough money in most sectors for a small slice of the pie to be filling enough.

If you go into your venture with a commitment to deliver a great service at a fair price, then you are likely to be a good business. How many people are delighted to find a good accountant that saves them more money than they cost, or a sandwich shop that always makes tasty sandwiches and serves them with a smile, or a builder they can trust, who does a good job and doesn’t leave a mess?

Everybody is. And when people find such a business; they stick with them and recommend them.

If you don’t have a substantially different product or service, then you can certainly differentiate yourself with reputation. Saturated, established markets can be difficult to break into, but if you deliver a great service then eventually you will, and with customer satisfaction, once you are established you are there to stay.

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Don’t take no for an answer, find another way

by: Thomas

February 24th, 2010

Have you ever heard successful business owners / entrepreneurs described as dogged? If you run or are starting your own business, it’s an attribute that you’d better learn fast.

Here’s a tip to help you along the way: Dogged doesn’t have to mean chipping away at a problem until it crumbles, it means using your imagination to find an alternative way to get the result you want.

Here’s another tip: No doesn’t always mean no, it quite often means “not like this.”

Example: Cold-calling. I don’t care what you are selling, how cheap it is, how much I could save, how easy it is to switch or how soon you can meet. If you cold-call me, I probably won’t do business with you. Maybe a change of marketing channel is necessary.

It’s a common behaviour for business owners to start altering their prices and business model until more people start saying yes. But as shown in the example above, it’s not necessarily that your model is wrong, it might be the way you are trying to do business.

I used the example of cold calling randomly of course and it can be incredibly successful for some people. I could equally say the same about business networking events, where people are so eager to prove their credibility they can end up scaring potential customers away.

Example: You get approached by someone at a small business networking event who want to tell you about their new business coaching company. They tell you about the big company they used to work for, and the leading companies they worked with, and their great success that took them first class to all corners of the globe.

Sounds expensive, I’ll pass. In this instance maybe a change of script rather than marketing channel is necessary. Perhaps one that focuses on how I can benefit rather than how successful you are/were. Maybe you need to play a waiting game and get to know me over a period of months (building trust). Maybe proving your knowledge with an insightful presentation at an event will allow me to draw my own conclusions about your credibility.

This isn’t a post about how not to do business, so don’t pay too much attention to the slightly extreme examples of poor selling above. Pay attention to the idea that when somebody says no (in one of it’s many forms!), they don’t necessarily mean no to your service or product. They often just mean, no I don’t want to do business based on this encounter.

Have you ever heard successful business owners / entrepreneurs described as dogged? If you run or are starting your own business, it’s an attribute that you’d better learn fast.

Here’s another tip: No doesn’t always mean no, it often means “not like this.”

It’s a common behaviour for business owners to start ripping up their prices and business model until more people start saying yes. But as shown in the example above, it’s not necessarily that your model is wrong, it might be the way you are trying to do business.

Sounds expensive, I’ll pass. In this instance maybe a change of script rather than marketing channel is necessary. Perhaps one that focuses on how I can benefit rather than how successful you are were. Maybe you need to play a waiting game and get to know me over a period of months (building trust). Maybe it means proving your knowledge with a few insightful presentations which allow me to draw my own conclusions about your credibility.

This isn’t a post about how not to do business, so don’t pay too much attention to the slightly extreme examples of poor selling above. Pay attention to the idea that when somebody says no (or they don’t say yes), they don’t necessarily mean no to your service or product. They may just mean, no I don’t want to do business based on this encounter.

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Why start a business?

by: Thomas

February 24th, 2010

What’s the point in climbing Everest?

Is it about the moment you reach the summit?
Or is it about the moment you decide to do it, the planning, the fund raising, the packing to go, the arriving, the base camp, the first step up the slope, the first night in the tent, the half way point, the last few hours or the final step?

Of course it’s all of those things, but mostly I’d say it’s about all the stuff that precedes the moment when you are stood at the top.

There is a parallel consideration for business owners, and it’s this:

What is your business all about. Is it about the moment that you reach the summit, whether that summit be selling up, retiring or generating a sum of money for your charitable cause?

Or is it about all the other stuff before you get there. The risks, the milestones, the disasters and the breakthroughs.

The journey of growing a successful business is long and comes with no guarantees. If it’s all about that final moment of success, you might find yourself disappointed when you get there. Maybe you’ll discover it was more about the journey than you thought.

companies house made easy

Benefits of business networking

What is the most important characteristic of a startup?

“A start-up is an organization built to search for a repeatable and scalable business model”

Finding a gap in the market

Don’t take no for an answer, find another way

Why start a business?