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networking

How small business owners communicate with their customers has changed out of all recognition,

thanks to the advent of social media. However, maintaining strong relationships with partners across your business’ supply chain means also paying close attention to the personal connections only face-to-face meetings and networking can deliver.

Research carried out by accountancy firm Kingston Smith reveals that small and medium-sized enterprises are aware they need to improve their networks and connections to develop their businesses and grow, but do not know how to go about it.

NECESSARY EVILThe report, which was undertaken by the business schools of the universities of Surrey

and Greenwich, revealed that while 94 per cent of SMEs considered direct referrals important to their continuing success, most regarded social media as ‘a necessary evil’. Meanwhile, although SMEs considered LinkedIn to be of equal importance as traditional networking events and nearly 90 per cent used social media networks, over 35 per cent of SMEs did not consider their use of these to be effective.

Professor David Gray of the University of Greenwich, who co-led the research, explains: “Successful SMEs are mindful of both the potential benefits and dangers of spending time networking on social media. While they value LinkedIn for showcasing their business and establishing their brand, they are wary of getting too sucked into discussions and losing sight of the need to find new customers.

“The same is true of Twitter. It can be a highly effective tool for SMEs when used in conjunction with other social media, such as the business’ website and blogs, but there is the danger that tweeting may replace genuine business activity.”

Michael Snyder, senior partner at Kingston Smith, who commissioned the research, says: “In an increasingly connected world, where virtual relationships are valued more highly than ever, it is essential SMEs take a coordinated approach that combines traditional face-to-face networking with online tools such as social media.

“Devising a strategy that incorporates both online and offline activities is central to SMEs’ business development, particularly if they are to compete with their larger counterparts.”

What is clear from this research is that a balance has to be struck between the speed,

Meet and greetIN AN INCREASINGLY CONNECTED WORLD, TRADITIONAL

NETWORKING STILL HAS ITS PLACE, DAVE HOWELL SAYS

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convenience and low cost of using social media for networking activities and the advantages real world physical contact can deliver.

The thought of attending a networking event often strikes fear into small business owners. This is perhaps why these businesses have become the most active on social media, as it offers a way of avoiding face-to-face networking. Small businesses, however, need to maintain physical contact with potential clients and suppliers to remain profitable.

Charlie Lawson, UK and Ireland national director of BNI, a business networking and referral organisation, says: “In the modern world, it’s vital your business has a good social media presence. But online networking works the same as face-to-face - it’s about building relationships. So in the 21st century, it’s not a case of being online or networking face-to-face. You’ve got

to combine your networking efforts to include both - you build up contacts quickly online and develop the necessary relationships face-to-face.”

Find an event you love, is the advice offered by Shaun Jardine, who chairs and runs successful networking clubs in Banbury, Rugby and Bicester.

“It may take a while before you feel you enjoy networking,” he adds. “Concentrate on speaking to as many people as you can and, rather than pushing your own business, make it your mission to find out about what other people do and find ways of helping them. Networking works best through reciprocity - if you help people, they’ll be more inclined to help you.”

BUILD TRUSTCharlie Lawson adds: “The best way of looking at networking is to stop hunting for opportunities - they will always dry up in the

end. It’s much better to try and farm relationships. Build relationships with people and over time you’ll get to know, like and trust them. Once you have this trust, it becomes easy to share contacts and pass business opportunities.”

The traditional means of marketing a business had for decades meant a sales team visiting potential customers. In an age where small businesses in particular have been tightening their belts, one of the first cost centres to be reduced was travel.

Switching to social media and teleconferencing using low cost systems such as Skype have become popular. However, evidence suggests a wholesale move to digital marketing techniques is having a detrimental impact on sales levels and the depth of relationships with commercial partners. MM

HOW TO BECOME A NETWORKING EXPERT

Attending events and networking with others isn’t just fun, it can also open a lot of doors. Connecting with fellow small businesses, for example, can pave the way for referrals, business partnerships and learning experiences. ■ Find the right networking event that best fits your goals, budget and comfort level. Do thorough

research to determine which one’s the best for your business. ■ Think ‘help-working’ not just networking. You already know the basics of networking: smile, ask

questions and don’t be self-absorbed. The key to establishing lasting and fruitful relationships is being helpful whenever you can, even if you don’t think the person you’re helping can give you anything in return. That may sound trite, but it works. While it’s important to have a purpose in mind, try not to be too calculating. Don’t treat each conversation as a transaction.

■ Follow up. People always say: “I’ll call you” or “I’ll be in touch”, but not everyone does. After an event, make sure you send your contacts an email or give them a call to say it was good to meet them. Be sure to personalise your messages by bringing up the specific things you talked about during the event or offering a customised tip that they can apply in their business.

■ Take the conversation online. If it has one, don’t forget to include an event’s official hashtag in all your updates. Event specific hashtags are handy because they allow you to connect with like-minded attendees and you can use them to find relevant conversations to participate in. Send tweets to the individuals you met and let them know how much of a great time you had. If you took photos, post them online and tag or @mention people who are in them.

■ Stay on their radar. Can you still make a good impression weeks or even months after the event? Sure you can. Stay updated and top of mind with the people you met by putting them on special Twitter lists, so you can see what they’re tweeting about and contribute whenever you have something to say. Another good way to stay on people’s radars is to set up Google Alerts on your key contacts, so you can keep tabs on them. That way, if they’re quoted in the media or publish a press release, you can send a timely note.

Advice provided by John Coulston, vice president of sales at Vend, a cloud-based point of sale specialist.