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Are You a Social Butterfly?

Some people have a natural talent for networking. They just love attending weekly “leads” or “tips” groups, monthly Chamber of Commerce dinners, Rotary Club functions, women’s business workshops, charity galas, you name it, they’re there. Instantly recognizable in the community, they’re the women who usually enjoy a high volume of business that’s directly proportional to their networking activities.

And then there are folks like me. I’ve never been much of a social butterfly, but I do participate in several networking-type groups. I just don’t like putting on a suit and pantyhose to do it. Fortunately, I’m able to limit my “face time” with the rest of the world by attending only one or two outings every couple of months. The rest of the time I’m making connections in other ways.

Boost Business by Building Relationships

As a small business owner, I recognize the value of building strong business relationships. It’s an important part of the basic business equation: more visibility = more customers and more customers = more money.

All businesses rely on a steady flow of patrons, and we carefully nurture our client relations with consistent marketing efforts, but we often overlook the value of business-to-business (B2B) relations. By joining forces with our peers, we can also pump up our profits. Consider these strategies for collaborating with other business owners:

The barter system. Trade your products or services with another professional in an even exchange, or at a discounted rate. No out-of-pocket expense, builds bonds between peers, a win-win situation.

Business co-op. The way this works is that several business owners contribute products or services worth a preset dollar amount to the cooperative (co-op), and each member is then entitled to receive the same amount of goods or services from any other member. So if you are a dentist and you pledge $500 to the co-op, then a photographer or caterer or restaurateur who also belongs to the co-op can use your service in an amount up to $500, even if you don’t need her particular service in exchange. You are now eligible to receive $500 worth of products or services from any other member who still owes that amount to the co-op.

This system works especially well in smaller towns where most people are familiar with, and trust, the other contributing members. An oversight committee ensures that a variety of services and products are available and that all members contribute equally.

Buying in bulk. You know how you can get great deals on economy-sized packaged food at those warehouse stores? You save money because you’re buying in bulk — the same items in individually-wrapped packages cost far more when purchased separately. Likewise, when your business pools its buying needs with other business owners — on office supplies, advertising, and copying services, for example — you each boost your purchasing power by buying in bulk and splitting the reduced-cost goods among you.

Co-sponsorships. Whether you’re raising money for charity, sponsoring a Little League baseball team, or hosting an annual block party, you and other business owners share the expenses involved in sponsoring the event (or team), for which each business receives equal advertising (team jerseys with business names and logos prominently displayed; T-shirts sold at charity events, etc.), free publicity, and recognition in the community as a contributor to the event. In addition to the advertising and free publicity (the media covers these events as newsworthy and you don’t pay a dime!); you also foster good will among your co-contributors and with the community at large; you save on expenses; you broaden your potential customer base through your heightened visibility, and you get to network with people outside your usual circle.

Cross-referrals. Business owners who trust and have confidence in your ability to provide a valuable service or commodity to their own customers are more likely to refer their customers to you. Especially if your business complements their own. For instance, a veterinarian might very well refer her clients to your pet store if she knows you and trusts that your business will fill her customers’ pet supply needs. In return, assuming the trust and confidence is a two-way street, you refer your own customers to her veterinarian service to fill their pet’s medical care needs.

Developing B2B relations, or strategic alliances, can amplify your sales volume to a remarkable level.

Choose The Networking Strategy That’s Right For You

There’s no question that regular networking can build your customer base; drawing business owners into your funnel can noticeably expand your market. However, unless you’re a networking Olympian, you probably need to “shop around” for the networking fit that’s right for you.

Online, you can join discussion groups and forums to exchange ideas and strategies and stay current with industry trends; and you can also join membership-based societies such as the eWomenNetwork, Women’s Leadership Exchange, and the Women’s ECommerce Asssociation, International. Membership-based societies such as these offer networking opportunities, conferences, and other benefits to their paying members.

Locally, you can join your city’s Chamber of Commerce or its equivalent, you can join professional organizations whose membership is comprised of same-type businesses, and you can join networking groups, leads groups, or “tips” groups whose main purpose is to provide a forum for exchanging business leads.

The price of membership varies from group to group, and because each has specific goals for benefitting their membership, you need to determine:

1. If the membership price is cost effective for you;

2. If you “click” with the other members;

3. If the time commitment fits your schedule;

4. If the organization’s goals match yours.

Unless you have unlimited resources to pay multiple membership fees and time is not an issue, meaning you’re available to attend numerous weekly and monthly events, you need to “try on” different groups to decide which would benefit your business the most, at a price you can afford, and with a time commitment that’s manageable.

Most organizations let you attend the first meeting or two as a guest before requiring you to join, so take a few for a test drive and see what networking strategy is right for you.