Twenty years ago most people if asked to define “networking” might have answered: it’s what communication engineers do using pliers to connect wires and cable. Ten years later the word had taken on the dominant meaning it has now: expanding one’s circle of business contacts and acquaintances as a platform to find new customers, partners and influencers. Now, with ubiquitous social media platforms and “meet ups” a regular feature of the business landscape, networking has become a key business process. Its importance puts it almost on par with business development, marketing and sales—especially in the worlds of entrepreneurial start ups and emerging middle market companies, venture capital, private equity and the service provider ecosystem that serves them. For these sectors networking has become the key business process.
Why is Networking Important?
There are a number of reasons why networking has become so important. The business world has become a far more dynamic and fluid place than it was 20 or even 10 years ago. Personal contacts can be the gateway to establishing and growing a business. We have all heard stories of important business relationships that began with a meeting at a professional organization event.
There are still plenty of barriers to even the most skilled networker. Hierarchy and status still count for something. Executives have Admins who screen their calls and emails protectively. But even with these barriers, access to people who can help you accomplish your business goals has become easier. That’s partly because even those who are successful in business today recognize that they must run scared. They need to be sure that they remain receptive to new ideas, business models and technologies--and are up on the latest industry and product “buzz.” Simply put, personal contacts are more important than ever. And networking is the art and science of optimizing one’s personal contacts.
Sure, there are tools that make networking easier. LinkedIn and a host of imitator sites and services are available to enable you to try to get introductions. Yet getting a warm personal introduction to someone who can assist you in reaching your goals can still be a challenge.
Top 10 Rules of Networking
Based on many years of experience as a business development and marketing professional, I have developed my own top ten rules of networking:
1. Be aware that networking is fundamentally an exercise in reciprocity.
2. Be authentic.
3. Be genuinely interested in the other person.
4. Start networking conversations with open ended questions.
5. Become known as a powerful resource for others.
6. Understand and communicate what makes you distinctive and interesting.
7. Be able to articulate what you are looking for and how others can help you.
8. Check people out carefully before agreeing to refer them to people in your network.
9. Find out what happens with introductions you make.
10. Be ready to do homework.
In the next part of this article, I will go into detail about my top 10 rules of networking.
Sue Lehrer has more than 25 years providing business development to professional service companies including banking, accounting, law, service and staffing firms. Learn more or contact Sue here.
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