Networking for Aspiring Entrepreneurs
by
K. MacKillop, CEO LaunchX
Published by LaunchX at Smashwords
Copyright 2010 LaunchX LLC
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Smashwords Edition, License Notes
This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.
Table of Contents
Chapter 1 -- Why Should Aspiring Entrepreneurs Network?
Chapter 2 -- Who Should I Network With?
Chapter 3 -- Where Should I Go To Network?
Chapter 4 -- When Should I Network?
Chapter 5 -- What Exactly Does Networking Mean?
Part II -- How to Network Your Way to Success
Chapter 6 -- Network With Objectives
Chapter 7 -- Build Your Database
Chapter 9 -- Radiate Integrity
Bonus -- 26 Tricks to Effective Networking
Part I -- Networking Basics
Welcome to the LaunchX eBook Networking for Aspiring Entrepreneurs! It is our mission to get you started in the right direction toward startup success. Networking is a huge piece of the foundation you need in your new career as an entrepreneur CEO. The sooner you become a master of networking, the easier your path to success will be!
Research shows that over 50% of all American adults have aspirations of owning their own business and working for themselves. For most of us, the first hurdle is the hardest…where do I start? Do I settle on the perfect business idea first? Do I need to get all the legal paperwork in order right away? Should I take an accounting class at the community college? Should I fill in the blanks of the SBA business plan?
Nope, none of those are your best first step. The best thing you can do, the step you should start immediately, is networking. Surprised? You should be! We haven’t come across a free-steps-to-startup list that includes this advice at all…except ours, of course. But the reality is that who you know is, and always has been, as important as what you know and what you do…maybe even more so!
So, the purpose of this book is to get you started off on the right track on your journey to entrepreneurship. We’ll cover the why, who, what when, where and how of effective entrepreneurial networking. And, as a bonus, we have included the 25 top tips and tricks to becoming a networking master.
If you are ready for that first step toward taking control of your worklife and financial future, this is the place to start. Welcome to Networking for Aspiring Entrepreneurs from LaunchX.
Start Here. Go Far.
Chapter 1-- Why Should Aspiring Entrepreneurs Network?
Every aspiring entrepreneur starts out with the same fundamental goal – to succeed in launching and running their own business. Whether you define success by the cash you have in the bank, by your reputation within the community, or by the autonomy you have over your time and life choices, the paths from here to there require many of the same steps.
At a minimum, you have to:
~ Figure out how to do what you want to do,
~ Gather all the right tools, skills, and knowledge to get it done, and
~ Take the first step…then another, and another, and another!
Most folks get themselves stuck on step one…figuring out how to get where you want to go from where you are now.
One of the great misunderstandings about entrepreneurship is that it’s all about independence…meaning you have to work it all out for yourself. The truth is that entrepreneurs tend to be a very open, very synergistic community. The best and most successful business leaders understand how important it is to help each other out.
The best way to become part of that community is to get out there and jump in to the networking opportunities in your area! There are all kinds of good reasons to get involved with networking early in the startup process.
Learn the Ropes
Networking before you even begin work on your startup will do you a world of good. First, you will be exposed to the realities of working for yourself…it’s never the all good or all bad you read about in startup articles.
Talking to real entrepreneurs about the real challenges and benefits of working for yourself will help you create a more realistic vision for what your life can be as an entrepreneur CEO.
Get a Head Start
The greatest asset a new startup can have is a collection of solid business relationships. Whether the people you meet while networking are fellow business owners, entrepreneurs, potential customers, or even competitors, those contacts can be the factor that launches your new business to the stars.
Without a good foundation of business contacts within your community and industry, you will need to work twice as hard to develop your contacts while your attention should be on developing your actual business.
Grow Your Rolodex
The best networkers are the ones who seem to have all the answers. They are the ones who “know a guy” that can help solve just about any problem under the sun. They are the folks who tell you not to worry…they will have the right guy’s phone number in your email inbox first thing tomorrow. They know a lot of people, and they know what talents each of those people possess.
Need a tax accountant? They know three, each of whom are experienced with different types of situations. Need a web guy? He’s got a dozen, so you’ll have to explain what exactly you are looking for to get the right referral. Need employees? He’s probably got a list of folks looking for opportunities as well.
The secret is that YOU want to be that guy (or gal) that everyone goes to for answers. You don’t want to solve their problems for them, but you do want to have a name in your rolodex that you can trust to help build your positive reputation as a resource.
Building your rolodex is more than adding names to the list. You want to find out as much as you can about your contacts, get to know them, and make sure you only recommend the folks that you would allow to work on YOUR company.
By starting your networking today, you will be well on your way to being the one who “knows a guy”…and by the time you are ready to launch your company, you will have allies throughout your networking circles.
Solve Problems and Find Help
Every startup has its share of obstacles and opportunities, and no matter how much you prepare yourself for the job, there will be times when you need some help. Whether that help is in the form of outsourced work, a specific referral, or even just good friendly advice, the networking you do now will make it easy to find the help you need down the road.
Develop Relationships
We can’t stress enough how important relationships are to the success of your business. Even if you ultimately decide not to go into business for yourself, having significant professional relationships in your community (and around the world, if you manage online networking well) will put you one step ahead of everyone else in your field.
Relationships of all kinds develop along the same simple path. Meet, know, like, trust…that’s the classic progression of a relationship. Networking events are designed to cover the first step – meet. The know, like and trust steps are up to you!
There are many people who get themselves stuck on the first step and can’t figure out why their networking doesn’t pay off. After all, they go out every night of the week and collect thousands of business cards…but they just don’t get the referrals they are looking for! The fact is that the referrals don’t start coming until at least late in the know stage. And even then, those first referrals are a test to see if you are going to move on to the like and trust stages! Many resources won’t refer before the mid-like stage…if they aren’t sure whether they like you, they don’t want to send people who trust them your way!
Obviously, the best networkers understand this basic concept and develop their own standards for the people they meet. But if nothing else, you don’t want to vouch for someone that you have only just met! Thus, a critical part of building your professional relationships is to follow up with your best prospects and take the next steps to moving your relationships along the know-like-trust path.
When you do launch your startup, these relationships will be the foundation for developing your brand, your customer base, and your strategic plans for the future. Those folks will be your friends and confidants, your peers and your mentors. The sooner you start building those relationships, the easier your path to entrepreneurship will be.
Why should aspiring entrepreneurs start networking today? Because the people you know and the relationships you develop will smooth your path to success. And, building those relationships take time, and there’s no better time to get started than the present!
Remember, what you know is not nearly as important as who you know. And formal and informal networking is the single best way to expand your personal connections.
Chapter 2 -- Who Should You Network With?
Now that you are convinced that you need to get out there and grow your rolodex…or fill up your contact database, more likely…let’s get down to how you are going to get that going. Your first concern is who you should be networking with.
The truth is, you want to shake and howdy with as many different types of people as possible. Everyone has something they are good at, and you might be surprised, as you become more and more skilled at networking, to discover those special talents in a variety of folks.
One side note about the psychology of networking: It is human nature to assume that our own way of doing things is the best or right way to do them. Networking exposes you to all sorts of people, with all sorts of habits and personality traits. It is important to accept that other folks, even those very, very different from you, have skills and abilities that can help you further your entrepreneurial efforts. Work on taking people at face value and looking for something to like about everyone you meet…even if they are the most annoying person on the planet.
That said, there are a few groups of people on whom you should focus the majority of your networking efforts.
Inner Circles
The easiest and most obvious place to start is with your inner circle. Your family, friends and neighbors already like you and are already on your side, so they provide the perfect opportunity to get yourself into the swing of networking. You can practice the skills we will talk about later without being too self-conscious and you can get some honest feedback on how well you communicate.
And, it is important to start talking about your entrepreneurial aspirations to everyone you know. Not only will talking about your goals help you form better ideas, but your inner circle can help keep you accountable, keep you on track, with taking steps in the right direction toward launching your business.
Don’t fall for that all-too-common thinking error about keeping your business idea a secret so nobody else will steal it. Business ideas are not like lottery tickets…there isn’t just one winner, and you won’t be better off keeping it to yourself until the day you cash in. The truth is, if you don’t talk about your business, you probably won’t ever get it going, and you certainly won’t have any traction started if you ever do open the doors.
As for worrying about others stealing your great idea…don’t. Over 50% of Americans claim they want to work for themselves, but only two out of one thousand take the leap each year. The other 998 out of each thousand (make that millions of folks) don’t do any more than think about what they want to do. The odds of someone actually taking your idea and running with it are very, very slim.
Remember that there are very few brand new business ideas anyway. With the exception of some high-tech startups, the majority of businesses are just another form of something that already exists. Your goal is to make yours better than the other guys anyway.
Community Leaders
We’re not talking about rubbing elbows with the governor here, though that would be a great contact to have, but rather getting to know the folks who are leaders throughout your area. Business owners, church leaders, politicians, and the folks who organize the networking events all play important roles in the economy that you are planning to jump in to, so the sooner you start to develop relationships with those people, the better off you will be.
Your local Chambers of Commerce are a good place to start networking with community leaders. Some Chambers are run better than others, and the more active ones will be extending you invitations to their events from the first time you contact them. If you belong to an active church, get involved. If you don’t, consider joining one. Also, watch the business section of your newspaper for nonprofit fundraisers, political events, and hosted networking affairs.
Other Professionals
Professionals of all types make time for networking, and they can be just as important for you to know as other entrepreneurs…maybe more so. With the right balance of networking events, you will get to know someone in every type of business, in every industry you can imagine. Not only will these folks be great resources when you need products or services for your startup, but they provide great opportunities to be the one who “knows a guy.”
In addition, there are a few specific professionals you will need to know through the life of your company. We call them the Big Five, and they are your accountant, attorney, banker, insurance agent, and real estate broker. While you may not need any of their services during the startup phase, there will be a point when you need help from every one of them. And, if you have developed a relationship and they are familiar with you and your business, they will be far more effective in helping you out when you need them. Keep an eye out for experienced, competent folks who can fill these roles for your company.
In-Industry Entrepreneurs
If you already know the type of business you want to start, spend some time networking with other folks in that space. Good trade associations hold networking events and trade shows pretty frequently, and you can make some good contacts at industry events. And, there are plenty of online groups focused on just about every industry you can imagine…you can join into forum conversations, create virtual networking contacts, and keep up on the latest innovations and data for your business idea.
Getting to know your competitors is a good thing too…you can learn what works and what doesn’t and maybe even find a way to work together to benefit everyone!
Other Aspiring Entrepreneurs
Building a network of people who are in the same place as you is always a good idea…it’s like a support group for chasing your dreams. You can share resources, provide moral support, and maybe even barter services to help each other along the startup path.
Also, for-profit incubators are making resurgence of late, and they can be excellent resources for you and your new company. Incubators are basically organizations that provide basic resources to fledgling startups for a fee, but that fee is far less than getting all that stuff together yourself.
For example, small business incubators generally offer office space, either permanent or virtual, that includes the use of a receptionist, conference rooms, and the like. Most quality incubators are run by business professionals who also provide basic mentoring, such as accounting assistance, marketing advice, and so on. The folks running these programs are always out on the networking grind, so keep an eye out for those opportunities as well.
Your Target Market
If you have a good idea of who your primary target market will be, it is worth your while to get to know those folks as soon as possible. It doesn’t matter that you don’t yet have a product to sell. If you have a good customer database on the day you launch, you will be well-prepared to get those sales going right away.
Be sure to let any potential customers know what you are working on and when you expect to launch. Keep in touch, whether through email or at future networking events, and be sure to keep them up-to-date on the progress of your startup.
Even better, the potential customers that you encounter prior to launch can be your test market…and they can provide you excellent feedback from actual customers to add to your website! People love to see testimonials, and the clients you get to know early in the process will usually be eager to help you out. People love to be in exclusive clubs, and being at the top of your initial customer list is about as exclusive as one can get!
If you aren’t exactly clear who your target market is likely to be, your networking efforts will help you define those segments. Talking to others about your startup idea will get you immediate feedback. People who might be interested will be excited, people with ideas about who could use your product will be happy to let you know. Face-to-face conversations are, without a doubt, the absolute best way to research the public’s response to your startup ideas.
RED FLAGS!
With all this networking, you will be exposed to all types of people, and you are going to need to be alert to Contacts to Avoid. This list of non-starters include scammers, liars, gossips, backstabbers, and anyone else who might tarnish the reputation you are trying so hard to develop.
As you work yourself into new networking environments, be sure to pay attention to what you hear and see. Avoid people that seem to have trouble getting along, or who already have negative reputations in the group. Watch out for those folks who seem to always be wearing the used-car-salesman hat, even at informal events.
And, most importantly, stay away from those guys that are promising things that are just too good to be true…if they seem impossible, they are. Unfortunately, there are lots of folks out there preying on aspiring entrepreneurs. They tell you that they can get you millions in investment without you having to do any work (they can’t) or that you can start earning tens of thousands per week just by launching a website (nope) or that all you really need is a dose of their very expensive motivation to get yourself going (uh-uh).
The truth is this – if you want to be wealthy, if you want to become a strong, successful entrepreneur CEO, you have to learn the skills and do the work to get there. Networking is an important first step in your new career path, and learning to quickly and correctly evaluate the folks you meet is a key skill in protecting yourself and your startup.
Mix it up!
Finally, you are going to want to network with different people so that you can expand your contacts. Don’t fall into the habit of attending the same couple of events with the same group of people week after week, month after month. Yes, you might gain a tight-knit group of friends, but you won’t have the networking reach that divides the so-so entrepreneurs from the resounding success stories!
Finding good networking opportunities is easier than you might think, and the next Chapter will get you started in where to look for those events.
Chapter 3 --Where Should I Go To Network?
You won’t have any problem finding networking opportunities. First, your regular day-to-day life provides all kinds of informal networking prospects every day. And, a quick internet search in any city in the country will reveal dozens of networking events during any given week.
In addition, online networking through social and business sites or forums is available at all hours of the day and night. The trick is to find the combination of activities that will be right for you and your company!
Informal Opportunities
Everywhere you go, everything you do, networking opportunities are all around you, all the time. A trip to the gym, the grocery store, even your kids’ soccer game can be a chance to meet and chat up other professionals, aspiring entrepreneurs, and even potential investors.
As you are developing your business idea, it should become a regular part of your conversational topics…"Hi, how are you, I’m good, working hard on my new business of (whatever it is you do)." You’ll be amazed at how many of these informal contacts take a real interest in your endeavor…in fact many will be envious that you have the gumption to go for it!
If you tend to be a loner, now is a good time to break that habit. Host a BBQ for your neighbors, go out for a drink with your coworkers, and make a point to get to know the people around you. It really doesn’t matter what these folks do for a living, or even if they are remotely interested in entrepreneurship. The people you know also know a bunch of other people, and the resources you are going to need are out there.
It is interesting to note that research consistently shows that over 50% of all American adults have dreams of owning their own business. That’s over half of us! The funny thing is that most folks don’t talk about it very often. It just languishes in their dreams as something they just don’t believe they can accomplish.
You will likely be surprised to discover just how common the dream of entrepreneurship is as you begin really networking in your informal settings. Perhaps your commitment to this path will encourage others to do the same. Maybe you will find that people you thought you knew well have secret skills and talents that will help you get your business started.
If nothing else, you will absolutely get some great feedback on your startup ideas from the folks you already know. You will find that your friends and neighbors will have great ideas for improving your idea. Heck, you might even find a partner to jump in with you!
Formal Opportunities
Formal networking opportunities are those planned, scheduled events that are intended to bring together folks with certain objectives in common. They are widely available as the trend toward networking is exploited by everyone seeking a well-developed mailing list.
The classic networking options are still available, such as through the Chambers of Commerce and Trade Associations, but many of their events seem amateurish once you’ve experienced some of the privately hosted events and the networking group experiences. Also, like any other industry, some organizations are run very well, with active members and an ever-growing contact list. Others seem to just plod along, resting on past glories of the area’s business community.
The best way to evaluate these classic networking groups is to simply contact them, either online or by phone, but don’t pay your membership fee quite yet. The better organized groups will keep in touch with you, invite you to multiple events, and generally show an interest in getting you involved.
The rest will file your name in their database and leave it at that. If the Chamber or Trade Associations don’t make any move to pursue you, they aren’t going after other members either, which means you won’t be growing your contact database through their efforts, and membership may not be worth the money.
Newer networking models vary widely in content, objectives, and culture. There are networking organizations for just about any and every defined group you can imagine – Latino Business Owners, Women in the Arts, Work-at-Home Dads – as well as every industry, every geographic area, and even based around non-work hobbies, such as business networking for golfers.
Some networking events are based around presentations by members or outside resources that the organizers believe will be beneficial to the members. Basically, these presentations are sales pitches, though the better networking groups encourage the speakers to limit the sales piece in favor of useful content.
Typically, these presentations are 20 to 45 minutes or so sometime in the middle of the networking event. Don’t dismiss these opportunities out of hand because of the sales pitch component. The professionals that get up there to offer you free information usually know what they are talking about, and you might just find that piece you are missing in that sales pitch! And anyway, as an entrepreneur, you want people to hear out your sales pitch…so you should be willing to do the same, yes?
Sometimes, the networking organization gets a bit of a kickback (er, commission) from any sales made through those presentations, which allows the group to keep the costs low for the members.
Other networking events are purely social gatherings, basically open opportunities to meet and chat with other members. There are also programs that offer speed networking, like speed dating, where you meet and greet everyone else in the room in two-minute intervals.
Referral groups have also gained popularity, where each group is limited in membership to one professional from each industry, so that you will all refer each other. The efficacy of these groups is uncertain, especially for startup entrepreneurs, simply because locking yourself into a limited group also inherently limits your networking reach.
The cultures of different networking groups vary widely as well. Some groups meet in very formal settings, with a cash bar and cloth napkins. Others gather in the living rooms of the members. In the Orange County CA area, there is a networking group that always meets at different golf shops…and the evening always includes a short golf lesson.
Whatever networking environment you prefer, there are opportunities in your area. Of course, you can’t always tell what an event will be like from the promotional materials, so your best bet is to try out a number of different groups. Keep notes on your experiences so you will know which worked for you and which didn’t.
Most formal networking groups are looking for members to join up for a fee or to pay per event…but most will invite you to an event for free (or for a small cover charge) to introduce you to their programs. Even the good Chambers will invite you to several events before they really start pressuring you to join.
The upside of all this is that you can try out different networking groups to see which will be the best fit for you and your goals. Just be sure that you spread your networking time around to different groups…maybe schedule a new event twice a month or so…in order to keep your networking momentum going.
Online Networking