My recent networking article for MidwestBusiness.com is a follow-up to my previous post, 5 Reasons Why Entrepreneurs Need to Take Relationship Building Serious.
10 Reasons Why Entrepreneurs Should Take Relationship Building Seriously
Each and every day, I work with entrepreneurs to help them grow their businesses by providing advisory services and opening up my network. One of the thrills of my diverse network is that I am able to connect entrepreneurs to the right people. Without actively building relationships, entrepreneurs will have a difficult time building and growing a business.
It’s not always necessary for entrepreneurs to build out an entire network of various resources by themselves. Rather, they need to be aligned with power connectors who have large and diverse networks. As you get to know these people and build trust, they can become one of your biggest assets.
Power connectors have the ability to open up their networks to connect you to virtually anyone who can be helpful for you as you grow your business. Of course, you need to focus on building relationships in order to meet one of these connectors. Below are 10 reasons why it’s critical for entrepreneurs to take relationship building seriously.
1. Access to Equity Capital: Most entrepreneurs at some point need capital, which can be challenging to raise. In order to get in front of investors, you need to know them or get a high-quality referral. While debt capital also requires relationships, it’s not as stringent as equity capital.
2. Access to Talent: For any growing business, the right talent is crucial to the firm’s success. Entrepreneurs need to have a good network to draw management, advisors and employees. As you get to know people, you will have direct access to the right people or receive quality referrals.
3. Access to Partners: Finding the right partners is an important step for entrepreneurs to take their vision to the next level. Spending time building relationships is a great way to find channel partners, business partners, service providers or other like-minded individuals. While it’s challenging to do it alone, finding the right alliance is critical to success.
4. Access to Prospective Clients: Finding clients is obviously the lifeblood of any business. To find clients, it’s crucial that entrepreneurs spend adequate time attending networking events and reaching out to their existing network. Selling isn’t a quick process. You need to develop relationships over time.
5. Access to Peers: Part of what makes the entrepreneurial experience exciting is connecting with other entrepreneurs and learning from each other by discussing challenges and successes. Spend time meeting other entrepreneurs at events or through referrals. As you build these relationships, you will have direct access to other like-minded people with whom you can share ideas and get feedback.
6. Validation of Business Idea: No matter the stage of your business, it’s still a good strategy to talk to others so the market can validate your idea or future plans. It’s usually a good tactic to talk to other people before you implement an idea. You need to make sure your prospective customers will buy into what you’re proposing.
7. Exposure: When funds are tight, entrepreneurs needs to be creative about receiving PR and exposure in the community. Without talking to people in the community (media, entrepreneurs, investors, etc.), you will have a difficult time receiving inexpensive buzz. At the same time, you need this exposure to acquire customers.
8. Demonstrate Expertise: Most people have expertise in a particular subject, which can be a valuable personal asset. Don’t be shy about letting people know your knowledge, which will help you to become remembered and can lead to new opportunities. As you become known as an expert, you will be presented with speaking opportunities, which can also lead to sales.
9. Starting a Business: Would-be entrepreneurs may not have the resources to start a business until they get to know certain people in the community. By connecting with the right people, entrepreneurs can get the critical help they need to get started. Many entrepreneurial support organizations exist that you may not know about until you are proactive and meet people.
10. Sanity: Entrepreneurs spend many hours working very hard at building a business, which is necessary. However, it’s also necessary to get out of the house or office and interact with people. Without this human interaction, you may get a little crazy.
Final Thought
If you are an entrepreneur, take the above points very seriously. By dealing with entrepreneurs on a regular basis, I understand their resource constraints. I step in to help alleviate some of the challenges and help them move forward.
As much of my networking activities take place in the entrepreneurial community, I can be a good resource for small and growing businesses. In fact, on May 8 I’m co-hosting the Great Chicago Networking Extravaganza, which is designed to help people become more effective networkers.
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