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Networking, A Must for Small Business

There are those who think this statement is ridiculous. After all, advertising is how a business owner lets potential customers know they have the solutions to their needs…right?

But what does a small business do when there are no funds for advertising? How will their message be heard?

In the absence of a significant advertising budget, networking is the next best solution. No matter what your vocation, there are associations, clubs, and social groups that have the same target market as your company, but are offering different products. Even though you all are competing for the same dollars, many times there are groups of professionals who like to share successes and discuss difficulties as they move through their business cycle.

When choosing these associations, be imaginative, think of businesses your target groups may frequent and learn as much as you can about your customer’s habits within their business. For example, if your target market is “Soccer Moms”, then it may not be a bad idea to attend a meeting of the local orthopedic injury association.

One of the benefits of networking is there is no limit to the number of organizations you can join or meetings you attend and most are free. Moreover, many of the meetings you attend will lead to others…I belong to four formal organizations and attend meetings and social gatherings with an additional three. Through these associations, I have received leads, referrals, and business contacts that would have taken months to generate on my own.

Before you run out and join ten organizations there are a few thing you need to consider:

  1. Make sure the organization will lead to business or those who can refer your business
  2. Perfect a five minute description of what your company does (elevator pitch).
  3. Take a sharpie and make notes on the back of the business cards of those who have promise
  4. Send a thank you email to all of those whom you collected a business card and ask for a meeting within 7 days to determine if further communication is warranted

The key to effective networking is to not only meet as many people as possible, but to move in circles that encompass your target audiences or provide you with greater opportunities for growth. Many of the people you meet know more than you, so always be ready to listen and if you really find someone you feel will be beneficial invite them to meet with you within two days of your conversation to further discuss your or their ideas. If you are a reserved person who has trouble in large groups, take it slow by attending but not talking to anyone, then set a goal of meeting one person per meeting, then two, then three – you get the idea.

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