Growing Small Businesses

Lesson 4: Networking as a marketing tool

Use existing networks for new business

So, you're convinced that you have a great network. You're on a first name basis with all the professionals you deal with. You know lots of people in your community and in local organizations. But nothing much seems to happen with regard to your business.

There are two things that are required for a personal network to become beneficial for your small business. First you have to become aware of it and organize it. Second, you have to put it to work. Putting it to work means that the members of your existing network have to know that you're in business and what you're doing. You'll find that often, they don't. You have to tell them all.

If you're just starting, it's easy, "Did you know, I've just started a new business doing ..." If you've been going for some time and they don't know anything about it, which is quite likely if you haven't been using your personal network, then it's more tricky. Ideally, there should be some event you can tell everyone about. "I've just sold my hundredth ... Oh, you didn't know about my business? It's going extremely well." If you have a large network and haven't used it, you'll get tired of telling everyone but that's what it'll take to activate it for your business. Once everyone knows, the network will almost start working by itself.

I'm a director of a local theatre and we publish a program for the different plays we put on. Our local car dealer never used to advertise in our program and I didn't get my cars from him. A few years ago, when I needed a new car, I checked him out and he had what I wanted so I leased one from him. The next time we called about an ad in our program, he bought one. He's been advertising in our program ever since and I've been getting my cars from him. One of my companies also supplies computers but I never asked the car dealer about buying one from me. His needs for computers were a little different than what I was offering so we weren't a good fit. That's an example of networking and also of knowing when not to use the network.

I have a lawyer in my private network who incorporated my company. He gets computer equipment and service from me. He can call me for free computer advice when he needs it and I can call him for legal advice. Of course neither of us can overdo the free advice thing - if we need a lot of information, we pay. I first met him years ago, I think it was when he was raising money for the local community center. That's the kind of informal network everyone has and the kind everyone should look at when they're a small business owner. Even if it's just Uncle Don across town or your neighbour to the left, what do Uncle Don or the neighbour do and does that fit in with your business? And do they know what you do?

Just picture yourself and your business in the middle of this big network of people who all know what you do, all know that you do it well, all want to help with advice, recommendations and referrals and all wanting you to do well. That's your personal network working properly for you and your small business. You've got one so get it working for you.

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