

         HOW TO EFFECTIVELY NETWORK TO CREATE NEW BUSINESS LEADS
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                            By Bruce Kullberg

Networking. (1) The ability to build sales profitability through 
impersonal communications and contacts. (2) The most cost effective way 
to market a business. - INC. Magazine, Dec.'91. 

Networking is both a concept and a specific activity which, if understood 
and successfully implemented, can mean big things for your 
entrepreneurial business.  The dictionary defines a network as "an 
arrangement of parallel wires, etc., crossed at regular intervals, or 
anything like this, as in a system of inter-connected roads and 
individuals."  When placed in a business context, networking means seeing 
to it that practical information about similar (parallel) business needs 
or customers' desires get communicated (via wires?) to all affected 
businesses (inter-connected individuals) so they can take action.  By 
being "wired" into a human network of contacts and information relevant 
to the business, the entrepreneur can be better positioned to exploit the 
marketplace.  

WHERE AND HOW DO I BEGIN?
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Business networking groups and organizations have become commonplace in 
almost every metropolitan city throughout the United States.  Either 
through the efforts of your city and/or state economic development 
departments, Chamber of Commerces', universities, or private initiatives, 
the structure is in place.  Almost all local newspapers publish meeting 
or club dates for special interest groups.  If you can find the listing, 
call your local newspaper for further information.  It is up to you to 
tap into these organizations and benefit through active participation.  

Networking is advertising in its' purest form - word of mouth.  I'm not 
referring to advertising a product or service - but yourself.  If you are 
attending networking meetings, but not introducing yourself to as many 
people as possible, (AND explaining your present situation or business 
needs!), chances are you're leaving the meetings feeling discouraged and 
ineffective, and probably wasting your time.   Suppose you are brave 
enough to attend several meetings and you get to know several people?
What usually happens when you attend the next meeting?  Do you end up 
finding a comfortable corner and talk to the same people you met the week 
before?  Sure, most people do!  Almost everyone feels more comfortable 
and secure by socializing with familiar faces. 

But that's not the purpose of joining a networking group.  Results are!  
Take the initiative to talk to someone new by introducing yourself.  Ask 
them what type of business they own, or would like to start, or at 
least why they attended the meeting.  Be a matchmaker by introducing and 
linking people with similar interests. Through your actions, they are 
going to be appreciative of your efforts, which could result in a 
returned favor. Most likely they will follow your example and be a 
matchmaker too. Networking should become an integral part of your 
marketing efforts.  This was best explained by Harry Leibowitz, 
President, Partner In Marketing, a marketing firm based in Columbus, 
Ohio, "Everyone is a potential customer, or a lead to a potential 
customer.  You have to work at it, and it should be thought of as a job.  
And don't have someone, or expect them, to sell your business.  You sell 
it!"  

NETWORKING TO GENERATE NEW BUSINESS LEAD
----------------------------------------
Mr. Leibowitz uses a process called 'extended networking' in his daily 
activities.  Start by writing down the names of everyone you can think 
of, everyone you know from school, church, organizations and 
associations, friends, neighbors, relatives and so on.  You should have 
approximately 500-600 names on this list.  After compiling this list, 
exercise judgement in dividing this list into three catagories.  This 
list will include Potential Customers, Leads to Potential Customers, and 
Both.  Next, take each Potential Customer list and and divide into three 
catagories, being High Potential, Modest Potential, and Low Potential.  
You will now have 9 cells of catagories.  Those who are on the High 
Potential list, send a personalized letter and a nice brochure, then call 
to follow up within 5 days after sending. If you have more Potential 
Customers on your list than you can conveniently call within 5 days, then 
send in waves and allocate the time to call.  Those who are on your 
Modest Potential list, send a letter and brochure.  After waiting 2 to 3 
weeks, send another letter (only) as a reminder.  In another 2 to 3 
weeks, send another letter.  Follow up with a phone call ONLY after 
working your High Potential list.  And those who are on your Low 
Potential list, don't bother.  

DON'T LET YOUR EFFORTS GO TO WASTE -- FOLLOW UP!
-----------------------------------------------
Once you have generated interest, be sure to follow these simple steps to 
close the sale:  

1) Pursue the appointment.  You still have to get your foot in the door 
   and make your presentation.  

2) Be prepared.  Find out as much as you can about your potential 
   customer - company background, competitors, etc.  

3) When doing your presentation, sell the benefits of your product or 
   service, not the features.  The customer wants to know how your product 
   is going to benefit him, save him money, or increase productivity.  How 
   it works is of little consequence or importance.  

4) Be persistent.  After making your first presentation, follow up to 
   answer any questions or objections, then,...

5) Ask for the order!  

MORE NETWORKING TECHNIQUES!
---------------------------
You must be an active participant in networking meetings.  If you aren't 
attending, don't expect the benefits.  An associate who belonged to a 
local networking group told me that everytime she attends a networking 
function, she tries to meet five new people, get their business card, and 
discuss with them their specific business needs.  After doing this for 
six to seven months, she reported to me that several contacts resulted in 
new business, several were appreciative of her assistance (good public 
relations), and several may become clients in the future.  Several have 
also sent her referrals.  

When someone asks you for assistance, to who do you refer them to?  Simply, 
people you know.  That's why it's important for everyone to know what 
your business is, so you will be referred to.  An example of this is a 
gentleman who called me from out-of-state, requesting information on an 
organization.  I answered his questions, but also asked him about his 
business, and what specific information he was interested in.  I provided 
him with several resources that could possibly help him.  In return, he 
told several of his friends and within one week I received two more phone 
calls requesting assistance.  

So far I have given you some specific examples of networking techniques.  
You might be saying to yourself right now, "Well, I tried that, but it 
just didn't work for me."  Then try again!  Maybe you were just talking 
to the wrong people, or not asking the right questions of the right 
people.  The point is...keep practicing.  You will attend meetings where 
you will walk away with 5-10 great new leads, and other meetings with 
nothing.  That's to be expected.  Chart your results for at least a 
dozen meetings.  You will be surprised as to how effect your networking 
really is!  Use the matrix as outlined previously to catagorize your 
leads.

BECOMING A NETWORKING GURU
--------------------------
The following networking guidelines will help you gain important 
insight in networking effectively. 

According to Tim Connor, of T R Training Associates, Ann Arbor, MI., 
who has done extensive research in the area of effective networking, 
there are some basic rules you must follow if you are going to be 
successful in networking.  

*  LEARN TO LIKE YOURSELF.  You must like yourself.  Every positive 
   relationship, including all types of networks, begins with a healthy 
   self image.

*  MAKE THE FIRST MOVE.  In any encounter, someone must initiate the 
   relationship.  

*  BE WILLING TO BE VULNERABLE.  Very few people are willing to put 
   themselves on the line -- to be real.  One of the best ways to get 
   others to shed their costumes and masks is to drop your's first.

*  BE  WILLING TO RISK.  All of life involves risk.  In probing a 
   potential network for contacts, information, or common interests, there
   is the potential for rejection.  

*  LEARN TO OVERCOME THE FEAR OF REJECTION.  The fear of rejection is one 
   of the major causes of failure in selling, relationships, and business.  
   We all have a fundamental need to be liked, accepted, and loved.  

*  PUT YOUR ENERGY INTO YOUR POSITIVE CONTACTS.  If you think that everyone 
   you meet likes you, you have another problem.  It is unreasonable to be 
   accepted by everyone you meet, regardless of the circumstances.  Nuture 
   those relationships where there is genuine and mutual respect, liking, 
   and caring.  

*  TO CREATE A POSITIVE FIRST IMPRESSION: BE -- DON'T ACT.  What do you 
   look for in someone you meet for the first time?  What qualities make 
   you feel comfortable and create a willingness to get to know this 
   person?  Why not develop a list of all the qualities in other people 
   you like, then rate yourself on those same qualities.  

*  JUDGE NOT THAT YOU MIGHT BE JUDGED.  Each of us has something to offer 
   each other and the world.  Learn to accept differences as normal.  
   Just because the other person is not like you, it doesn't give you the 
   right to judge.  

*  NETWORKING IS NOT A ONE WAY STREET.  The desire to grow, learn, and 
   share is the basis of all networking.  But to find the areas, with 
   each person you meet that can benefit one of you in the relationship, 
   requires some probing, asking, and learning about each other; your 
   needs, interests, and problems.  To successfully accomplish this step 
   requires a two-day dialogue.  

*  EVERYONE YOU MEET KNOWS SOMEONE YOU KNOW OR SOMEONE WHO CAN HELP.  
   Everyone you know knows someone that you know.  It just depends on how 
   far back you have to go to find the common contact.  The chances of 
   improving the number of common contacts increase with a few basic 
   factors:  Are you in a common business or similar organization?   Do 
   you operate in the same geographic area, have any common interests, 
   similar problems or goals, or face similar opportunities?  These are 
   just a few ideas for openers.  

*  LISTEN TO YOUR WORLD - YOU MAY LEARN SOMETHING.  Few people really 
   listen.  We are becoming a nation of talkers.  Everyone needs someone 
   to listen to them and everyone has something worthwhile to say.  

*  NETWORKING AT MEETINGS IS NOT A NUMBERS GAME.  Networking can take 
   place anywhere; on the street, in elevators, in coffee shops, in 
   airplanes, and in business meetings.  However, some environments are 
   more conducive to building a productive network than others.  Business 
   meetings fall into this category.  

Building an effective network contact takes time, respect, and interest.  
Too many people jump from person to person in a matter of seconds.  You 
know who I mean.  They pounce on you by saying, "Who do you know 
that...", and they are gone.  In my opinion, this isn't networking, this 
is rude behavior.  

*  LEARN TO SEPARATE BUSINESS AND SOCIAL NETWORKING.  Networking at a 
   special event can be just as productive and beneficial as at a 
   business meeting.  In a social setting, the initial networking steps 
   should be taken establishing common ground, interests, etc.  Many of 
   the details should be discussed later by phone, or at a future non-
   social meeting.  Learn to separate business from pleasure in this 
   environment.  The follow-up in this situation is where the bulk of 
   information should be gained.  

*  POSITIVE CONVERSATION IS AN ONGOING GIVE AND TAKE.  Starting a 
   conversation can be an easy or a frightening experience.  The best way 
   I have found is to either ask an open ended positive question related 
   to the environment or person or make a positive statement about the 
   environment or person.  Then follow it up with an open ended question 
   requesting an opinion, feeling, or response from the other person 
   about the environment, an activity, or situation at hand.  The rest is 
   easy.

*  BUSINESS CARDS ARE A TOOL, BUT THEY MUST BE USED PROPERLY.  Most 
   business cards end up in the trash.  Many times people exchanging 
   cards believe that the other person is saving their card.  I always 
   ask the other person, "Why would you like it?"  I don't do it in a 
   smart manner, I am genuinely interested in their reason for asking.  
   This usually starts the dialogue.  

Final thoughts - think about all the people who you know that you met 
through other people.  Think about all the benefits you have gained 
through this matrix of contacts.  Positive networking is like a chain 
letter.  You can't just be a taker, you must be a giver, too.  Happy 
networking! 

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For further information about the sales and training services provided 
by Tim Connors, please contact him at:  T R Training Associates, P.O. Box 
1425, Ann Arbor, MI.  48106.  (313)930-0880 or 800-222-9070.
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