Every entrepreneur can benefit from networking when they establish their new business.
Obtaining the necessary startup capital as well as finding prospective consumers
for the business highly depends upon the entrepreneursâ networking ability. Networking
goes beyond simply meeting people and exchanging business cards with them. It is
the art of building associations and establishing a solid trust between both parties
involved so that each can benefit from one anotherâs strengths. The following tips
will allow the entrepreneur to understand the etiquette of meeting people and how
to effectively establish contacts and exchange ideas for networking.
1. Always look, act, and speak professional
Appearance and mannerisms are initial components that people often rely on when
evaluating someone. Therefore, it is crucial that entrepreneurs make a positive,
lasting impression on those whom s/he makes contact with. Entrepreneurs are encouraged
to look clean and respectable as well as conduct their actions in a professional
manner so that others will take them seriously. The use of slang should also be
avoided by the entrepreneur when networking because the problem with slang is that
not everybody may understand it. In addition, some people may consider it rather
offensive.
People who have interacted with well-respected, well-dressed, and well-spoken business
owners were able to establish more trust and loyalty with them as opposed to the
entrepreneurs whose appearance and actions did not take precedence. Effective networking
is about building relationships with others who can refer you once they have come
to trust you, have confidence in you, and feel loyal to you. This is why looking
and acting professional is crucial for successful networking.
2. Always carry business cards with you
Another good way to successfully network is for the entrepreneur to carry their
personal business cards with them at all times. This makes the process of establishing
contacts easy since the business owner can simply distribute the cards every time
they meet a new acquaintance in a social or professional setting. Business cards
contain pertinent contact information about the new business owner, including their
name, phone number, e-mail address, and website. The design of the business card
should be simple, clean, and easy to read.
In addition, part of business etiquette includes the fact that every time an entrepreneur
gives out their business card, they are encouraged to ask for a business card in
return. This ensures the mutual exchange of contact information, which is instrumental
in maximizing a solid network of contacts. Comments should be written on the back
of each business card obtained, including the time, date, topic(s) of discussion,
interests, and any other significant information vital for a follow up.
3. Always follow-up with contacts
Any prospective contacts that have been established should always be followed up
with either a telephone call, an e-mail, or personal hand written note. The entrepreneur
should take the process of follow up seriously since these important contacts may
be essential in the launch and growth of their company. It is also a very good way
of showing an entrepreneurâs true intention and genuineness when it comes to business
practices. Follow-ups should be made from a few to several days after the initial
encounter, ensuring that the interaction with the contact remains pristine. Any
follow-up after a few weeks may be considered too long a period for any party to
accurately remember any individuals, conversations, or any events that took place
on a given day.
4. Be prepared to pitch
Another important aspect in effective business networking is the ability of the
entrepreneur to present their elevator pitch at all times. Whether they are at a
social or professional situation, they must be prepared to âpitchâ their ideas to
anyone and everyone in the hope of establishing a successful network of contacts.
It is a good practice to always be ready to present an elevator pitch because of
the prospect of meeting potential investors, customers, or professionals who can
add value to oneâs new business. Continuous pitching will also enable an entrepreneur
to refine their ideas and strengthen their presentation through repeated practice.
Since oneâs elevator pitch takes ample preparation, rehearsal will not only make
it flawless but it will also convey a business ownerâs level of confidence. An elevator
speech should be creative and concise, lasting no more than one minute. Things such
as body language, eye contact, speech volume, and emphasis of words are important
in grabbing the attention of audience members. It can also convey the entrepreneurâs
passion for their ideas and vibrant personality. The use of general statements and
excessive statistics should be avoided. An entrepreneur who creates a perfect pitch
that clearly states its objectives and provokes discussion will be able to successfully
establish networking contacts over those whose pitch is boring and not well-constructed.
5. Contact current customers via telephone, e-mail, direct mail, newsletters
An excellent way to establish a good rapport with existing customers is to contact
them and discuss their recent purchase. This can be made via e-mail, telephone,
and direct mail. By informally asking existing customers to rate their shopping
experience at their store and/or ideas on a particular product, entrepreneurs will
be able to learn more about how their customers perceive their business and work
on improving a customerâs overall shopping experience.
In addition, an entrepreneur can easily establish ways of keeping customers by offering
them exclusive discounts and promotional offers through e-mail and direct mail.
It is crucial that entrepreneurs contact their customers and offer these bargains
because it reflects a companyâs loyalty to their customers. In the same respect,
happily satisfied customers will pay more for items if a company makes them feel
important and if they have had a positive customer service experience. Therefore,
it is vital that business owners do things which will establish a loyal group of
returning customers who will refer their friends and families to the same services.
Customers should also be given the option to subscribe to newsletters advertising
current sales and newly launched products and services. A solid relationship with
existing customers through e-mail and direct mail interaction is a sure way of establishing
new contacts, especially if the current customers are happy with the services.
6. Be culturally aware
Another important component of network etiquette is cultural awareness. If the entrepreneur
is considering business in a foreign location or dealing with international contacts,
then cultural differences should be strongly taken into account. For example, in
the United States, Americans present their business cards rather informally, during
social and professional events. The card is either placed in their pocket or bag
immediately. The Japanese, on the other hand, have a more formal approach when presenting
their business cards (or meishi). When they have established a business contact,
the Japanese use both hands to hold the top two corners of the card facing up and
towards the person receiving the card so that it can be easily read. The receiver
should take the card by the lower two corners with both hands. The business cards
(or meishi) are also organized in a case according to the highest rank contact.
In addition, when networking, it is imperative for an entrepreneur of a new business
to understand the subtle, unspoken dynamics of social space (or separation) in every
culture. Social space refers to the distance and/or physical contact between two
or more people conversing or interacting in a given setting. In the United States,
there are four important separations to consider. For example, oneâs public space
can range anywhere from 12 to 25 feet, while social space can be an area of 4 to
10 feet. Personal space can be 2 to 4 feet, while intimate space extends up to one
foot. Americans often like to make physical contact with others, including handshakes,
hand-gestures, hugs, and/ or innocent pats on the back. While it may seem normal
in America, many cultures may feel uncomfortable and embarrassed with such contact.
In Saudi Arabia, the social space among individuals is equivalent to the American
intimate space; therefore, there is no need to be alarmed or disturbed if a Saudi
business contact seems as if they are standing a little too close during conversation.
The people of the Netherlands have a personal space that is equivalent to our social
space; therefore, entrepreneurs who plan to meet with Dutch contacts should remain
at such a distance during the course of their meeting.
7. Be involved on and offline
Business owners can also network by building alliances on and offline. By attending
meetings, workshops, and speaking at conferences, an entrepreneur can easily network
with people in their industry and establish solid leads. In addition, by participating
in online forums, chat rooms, mailing lists, and social networking sites designed
for business owners, one can also maximize their chance of establishing new potential
leads.
Go4funding.com is an online platform where members can easily network with others.
New entrepreneurs and existing business owners, who are looking to raise capital,
can post their capital requirements for prospective investors. Likewise, investors
can create a profile so entrepreneurs can find them easily. By becoming a registered
member of Go4Funding, users will have the opportunity to establish potential leads,
correspond with existing members, participate in community forums, and rank existing
posts.
Professionalism is the single most important factor that creates a first impression
with others; therefore, it is vital that entrepreneurs look and act professionally,
especially when they want to network. They are encouraged to carry their business
cards with them at all times and distribute them whenever possible. Follow-ups should
always be made with any new contacts as well as with existing customers in order
to make deals and/or establish more connections and leads. Entrepreneurs are also
expected to be prepared to âpitchâ their ideas at anytime, be culturally aware when
dealing with international contacts, and to become actively involved with the business
community both on and offline in order to effectively network. One important aspect
to bear in mind is that networking does not necessarily occur overnight. In fact,
it takes time to network and to build solid relationships with others. No investor
will provide startup capital to anyone without first interacting with the entrepreneur,
learning about them, establishing trust, and feeling confident about the business
proposal and the business owner.