Focus on others when you network!

August 23, 2015

Q: I've been told I need to network more in order to grow my service business. How does one go about it?

A: The most effective form of marketing is word of mouth. But people can't spread the word about you and your small business if they don't know you.

That's where networking comes in. Whether it's through a professional association for your industry, a chamber of commerce or another local business group, networking offers a valuable forum for prospective customers and colleagues to learn about you and the services or products you provide.

Successful networking is more than simply exchanging introductions and business cards, then waiting for someone to call. In fact, Nelson Farmer, a marketing expert and SCORE mentor, says people waste the few precious moments they have with new and existing contacts by focusing on themselves.

"It's better to spend most of that time asking questions and collecting information," he says. "Then you can make quick assessments as to whether they would have any interest in the solutions your business provides."

Farmer recommends that every entrepreneur have a succinct "elevator speech" - a 30-second description of the problems the business solves. After that, the focus of the networking conversations should be entirely on other people: their primary business concerns, problems they want solved and unmet business needs. As the conversations unfold, you may find areas that overlap with the solutions you provide.

"If not, you can still make an impression by referring them to other people in your network who can help," Farmer says. "They'll see you as a problem solver, and be more likely to provide you with referrals in return."

Networking also doesn't end with the conversation. Farmer recommends maintaining a data file of networking information and updating it as soon as possible after every contact.

"Make note of their interests, what you've shared with them, and when to contact them next," he says, adding that regular follow-ups are essential. "People have short memories and may forget that you exist and more importantly, that you're the best person to help them with their business needs and problems."

Finally, while valuable business contacts can happen anytime and anywhere; don't leave your strategy to chance.

"Identify the people you want to make contact with, whether prospects or potential marketing alliance partners, and make carefully researched efforts to build relationships," Farmer says. "This approach takes more time on your part, but it gets results."

Take time to see the big picture

August 9, 2015

Q: I was recently surprised to learn that a competitor is using new technology enabling her to provide faster service than I can. How can I keep from being caught off guard again?

A: Owners of small businesses sometimes get so bogged down in day-to-day operations that they don't find the time to see the big picture. They need to make the time to continue the kind of planning and research they did before they started up their business - so they see the new technology coming along that might impact their business.

Planning is an ongoing necessity because the environment in which your small business operates continually changes. New opportunities and challenges will arise that are different from those assessed during the startup stage.

How do you find the time to plan? Work more efficiently by prioritizing your activities, eliminating the low-value or unnecessary tasks, and delegating work to others.

Then watch your industry. In today's interconnected global economy, any change anywhere can have a ripple effect on any small business. The influences may be as far-reaching as a shift in demand, or as local as a new stoplight near your store, or as subtle as an emerging technology that could affect your business. Stay current with world and community events, and communicate with customers, suppliers and colleagues. You'll be less susceptible to surprises and better prepared to anticipate and capitalize on these changes.

Watch those numbers. Financial statements provide a window into the health of your business. Monitor and analyze trends. Your initial financial projections may be trending in an unexpected direction. Are current and projected cash flows in line with your industry and local environment? By comparing actual cash flows to projections, you can spot opportunities to improve performance.

Revisit your business plan. Your business plan shouldn't become a "trophy" of your startup success. Refer to it frequently to compare plans and estimates with current realities. Reassess your customer base, competition and marketing strategy, and adjust if necessary. Seek objective input from your key advisers like your CPA, attorney and SCORE mentor. It will improve the plan and speed up the process.

Make continuing your business education a priority. Attend topical workshops, webinars and chamber of commerce learning events to stay up-to-date and learn new skills. Monitor the SCORE workshop schedule at www.scorehouston.org to identify important educational opportunities.