Profitable Networking Strategies – How to Build Business Relationships (Without Feeling Icky)

Business networking can be a great way to let people know who you are and what you do—accelerating sales, referrals, and profits.

You do want more sales, referrals, and profits, don’t you?

The sad truth, though, is that most networking sucks the life out of people because of the way it feels. Selfish. Icky. But, as Michael Port writes in his best-selling Book Yourself Solid, there is a better way.

Here are just a few ways to improve the way you network so that you can build all the solid business relationships you want without ever feeling icky, and without ever giving an elevator speech.

Have a conversation. Under no circumstances should you give your elevator speech (or thirty-second commercial). People hate them. They are clutter, not conversation. Instead, introduce yourself. Connect, but remember they are a person, not just a connection.

Ask for their business card instead of handing them yours. If you want to connect and build a relationship, stop asking the other person to do the heavy lifting. You ask for their card instead, so you can be the one to follow up. Unless they ask for your card, keep it in your pocket.

Think about how you can help them. They are at that networking meeting for a reason. Think about how you could answer a question or introduce them to someone. Think about listening to them instead of waiting to jump in with how they could help you. People notice if you’re listening, if you’re really paying attention. So do.

Make a promise and keep it. Tell the person you’ve met (if it’s true), “I’ve enjoyed getting to talk with you, and it seems like we have some things in common. I’d like to follow up with you next week to see if we can get to know each other a little better.” Then do it. The sad truth is, promises made in networking meetings are usually forgotten before the last cookies are eaten. Keep your promises and you will stand out.

Keep in touch. After your initial conversation, you need to keep in touch with the people you meet. At the same time, you have to strike the right balance between stalking and disappearing. Frequency will vary depending on the relationship, but you should decide how often you want to stay in contact with someone and schedule it in advance. I recommend Contactually.com because it’s easy and effective, but you can use note cards in a file box or a simple spreadsheet.

Have a plan for what to say when you keep in touch. Here is the secret to good networking and relationship building: only make requests and offers proportionate to the amount of trust you have earned. How do you feel when someone you just met delivers their elevator speech and then asks you for the sale? Uncomfortable, right? Maybe even icky? And how do you feel when you press someone you hardly know for the sale (or the referral)? Definitely icky.

The truth is, as Tim Sanders suggests in Love is the Killer App, you can share your knowledge, compassion and connections with someone, demonstrate your good intentions and credibility, and earn their trust at the same time. Then, if the relationship develops and the time is right, it will be natural for you to do business together or give and receive referrals.

That’s okay, though. Because that’s when you have not just a one-off sale, but a partner, an ally, and maybe even a friend.

And what would happen if you followed all of these simple strategies for building solid, rewarding business relationships? You’d stop feeling icky, learn to love networking, and develop a ton of new friends.  And when that happens, people will want to do business with you and send their friends to you.

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Thinking About Starting a Business? Get to Know Lean Startup

So you’re thinking about starting a business or developing a new offering for the world? Eric Reis has written an exceptional book that you MUST read. You can buy it from Amazon here (not an affiliate link), or you can go to your local bookstore and ask for it. Whatever you do, though, get it. Although I have read hundreds of business books over the years, here are only a handful of books I would say that about, and The Lean Startup is among them.

The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster. And one of the exciting things about The Lean Startup is its principles apply to technology and non-technology startups, software businesses on the internet and coffee shops on Main Street. The Lean Startup method teaches you how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with maximum acceleration. It is a principled approach to new product development.

I’ve posted a diagram from The Lean Startup website below, but for more information you should go here.

methodology diagram

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When it comes to starting a new business, your gut is a pathological liar!

What were they thinking?

I was doing some research on what people on the web are saying about “starting a new business.” Why? I’m writing an honest how-to guide to share with my clients, and I want to make sure I’m not just regurgitating what everyone else is saying. Well guess what–I’m not!

Honestly, I’m surprised at some of the advice that’s out there. Stuff that may have worked in some industries at some time, but probably won’t work for 98% of people starting a business today. Michael Gerber says that 80% of businesses fail within their first 5 years, and of those that survive the first 5 years, 80% will fail within the second 5 years. That’s scary and entirely unnecessary.

I don’t want to call people out, so I am not going to include a bunch of links to bad advice here. Instead, I am going to discuss some of their suggestions and why I think it might be better to do something else.

Everyone’s favorite suggestion? Write a business plan.

Seriously? Write a business plan? How about you figure out whether you have a viable business model before you invest a lot of time and money in a plan!

Steve Blank and Bob Dorf, in their masterful book The Startup Owner’s Manual(not an affiliate link), say that “startups are all about the unknowns… a series of untested hypotheses.” How can you write a business plan based on unknowns and untested hypotheses? I suppose you can if you need to take the business plan to the bank for a loan, but then PLEASE put it on the shelf and ignore it until you figure out whether your business idea is sustainable.

Don’t get caught in the trap of trying to implement your vision of what the world needs. Not until you have gotten outside of your head and outside of the building and checked to see if your gut is telling you the truth or is (more than likely) a liar.

Unless you’re Steve Jobs, or Steve Jobs’ clone. He could usually go with his gut and get away with it, but very few people can. Even Jobs wasn’t immune to big ideas turning into big failures. Remember the NeXT Computer? He sold a whopping 50,000. Total.

One of Steve Jobs' Biggest Failures

Anyway, the truth is, more often than not, your gut is a liar.

And writing down those lies in a business plan doesn’t make them any more true.

My recommendation for starting a business? Do not start with a business plan.

Tomorrow I will tackle the second worst piece of advice for starting a new business. Avoiding this mistake will save you more headaches and more wallet-aches than you can imagine!

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