Harness the power of networking to help forge lasting business relationships with clients, vendors, partners and others.

By Kim T. Gordon

We’re naturals when it comes to building relationships. We’ve been doing it throughout our lives. Then why is it so difficult for many of us to network successfully? The answer may have a lot to do with misperceptions about the networking process. Because business networking is a sales activity—requiring one-on-one contact with prospective customers and clients—some entrepreneurs may perceive it as being too forward or pushy. But effective networking calls for exactly the opposite kind of behavior. It requires a giving nature, good listening skills and patience.

Networking is a tried-and-true way to produce leads for your growing business, provided you understand how best to make the process work for you. Here are 10 tips for increasing your networking success. 

1 Choose the right groups. A web designer in Washington, DC, recently complained that she went to countless meetings, even got actively involved, yet produced little return for the time she invested. After some digging, I discovered she was indeed going to many meetings, but they were all the wrong ones. In fact, she was attending groups where she would only meet individuals with whom she had lots in common—other designers or colleagues who might occasionally be able to send referrals, but would not be her bread and butter. It wasn’t until she branched out to groups of business owners and executives who might be shopping for a web designer that her networking efforts began to bear fruit.

There are several great ways to network in groups. One of the best is to identify groups attended by your target audience and make them your top networking priority. Next, you can join networking clubs or groups that meet solely for the purpose of making connections between individuals in a wide range of businesses. You can even create your own networking group made up of entrepreneurs who can consistently refer business to one another. Finally, you can network in peer groups, such as industry and professional associations, to earn referrals from colleagues and vendors.

2 Set strong goals. Before you attend any networking function, it’s important to set realistic goals. Be mindful that this is a sales opportunity, and you should manage your expectations accordingly. What can you honestly hope to accomplish at a single networking event? While it’s unlikely you’ll be able to effectively meet and establish relationships with a roomful of people—say, 30 to 50 at once—it’s not unrealistic to expect to make six solid contacts at any one event.

Most important, you should set a goal for your next step. Decide what needs to happen following each successful networking contact, and be specific concerning the actions you plan to take. Will you suggest a lunch meeting or promise to make a follow-up call? When you have a clear goal in mind prior to attending a networking function, you’ll be fully prepared to move your new relationships to the next level.

3 Create an intriguing introduction. An effective introduction has little to do with what’s on your business card. Instead, it should focus on how what you do, make or offer is beneficial to your new acquaintance. In other words, it must be relevant, specific and intriguing. And you must modify your introduction depending on whom you’re addressing.

Practice describing what you do in a way that’s meaningful to those you meet. For example, I am an author, a columnist, a consultant and a speaker specializing in small business. I also work with Fortune 100 companies as an on-air spokesperson. But that’s not how I introduce myself. When meeting an entrepreneur, I begin with my name and company name, and then say, “I write, speak and consult on how to achieve success in your small business.” And when meeting a PR prospect, I might say, “I’m an author and columnist, and as an on-air spokesperson, I help Fortune 100 companies communicate new product and branding messages to the small-business market.” Get the picture?

4 Make a great impression. Successful networking isn’t about putting on an act to be the life of the party or telling funny jokes. It’s about being yourself—honest, likable and interested in those around you.

As you move politely from person to person, shake hands, make eye contact, and give each individual your full attention. Once initial introductions have been made, the best way to start a conversation is by asking your new acquaintance a question about his or her interests or about the event. This is not the time to launch into a sales pitch or monopolize the conversation. On the contrary, building relationships is all about listening carefully to what others tell you so you discover how you can help them. Then, briefly describe the ways you can provide exactly what they need—and leave the rest for your follow-up calls and meetings.

5 Gather good information. All the people you meet have unique stories to tell—not just about what they do, but about what’s meaningful to them. While your prospects may not readily inform you that they like golf or that they have three children, through your conversations you’re bound to gain some valuable clues regarding your prospects’ lives and interests. Listen carefully for this information, as these observations will become tools for building rapport with your prospects. They are helpful signposts along the road to establishing commonality and a real sense of understanding that’s the foundation of every good relationship.

For example, you may learn that you share an admiration for opera with one prospect, and find out that another lives in the neighborhood where you grew up. Be certain to note your observations along with all the other data on the business cards you gather so you can refer to them in your follow-up notes and meetings.

6 Become a resource. If you go to a networking event focused entirely on what you hope to get, you’ll miss the point and most likely fail to achieve your goals. Successful networking involves patience and, above all, a willingness to give in order to get. It also takes time and effort to build trust. When you assist others, either by referring business to them or by being a valuable resource, you earn their trust and appreciation, which can translate to business in the long run.

Find ways to deliver value to those with whom you network, and look for opportunities to help them accomplish their individual goals. You can be sure that, in return, they’ll do everything they can to help you achieve yours.

7 Send a note. If you want to be remembered, it’s a good idea to send a short and preferably hand-written note after each initial networking contact. It pays to keep packets of notecards on hand; some are even available with slots for business cards. It takes only a few minutes to write each note, and they will reinforce the positive impressions you made at your initial meetings.

This is the perfect place to put that information you gathered about each of your new prospects to good use. Suppose your networking contact is a NASA contractor whose personal hobby is astronomy. Your follow-up note could include a mention of an up-coming meteorological event, such as a meteor shower, or a clipping from an interesting article on the topic. This would not only make your note memorable, but could also help you take the first step toward establishing a positive business relationship.

8 Construct a database. Do you have a contact-management software program in place to manage all your sales and marketing contacts? You don’t need to have a big business or hundreds of employees to justify software that manages your customer and prospect information as well as tracks scheduled sales and marketing activities. In fact, the smaller your business, the more likely you are to be juggling multiple tasks and to overlook the essential actions required to move prospects through your sales cycle.

Making a networking contact consists merely of an initial hello and a brief meeting. It doesn’t become meaningful until taken to the next level. If you’re an experienced marketer, you know multiple contacts are necessary, sometimes as many as eight or 10 depending on your industry, before the average sale is closed. So it’s essential to input your networking prospect data and schedule follow-up activity in a good contact manager, such as ACT! 6.0 (www.act.com) or GoldMine 6.5 (www.frontrange.com/goldmine), to ensure you stay on track with important contacts and action steps.

9 Close the loop. Oftentimes, successful networking will put you in contact with people who aren’t direct prospects but can refer business your way. When they do, it’s vital to keep them in the information loop. First, send a thank-you note for the referral. Then keep them apprised of the activity and positive results from the connection they helped foster.

After all, making a referral requires a leap of faith and a lot of trust. Have you ever referred business to someone only to learn their performance was disappointing? If so, you know how embarrassing it can be. So when you demonstrate that you can proficiently handle the referrals you receive, you can be sure more will follow.

10 Make networking a habit. For many successful entrepreneurs, networking isn’t something they do only at meetings or events; it’s part of their lifestyle. Have you ever met someone on a train or in line at the movie theater and struck up a conversation that resulted in business for your company? Networking opportunities are everywhere. Friends, neighbors, suppliers and current clients or customers can all be potential sources of referrals—as long as they know what you’re looking for.

It all starts with your willingness to talk about your business and to help others with theirs. Let your clients and vendors know that you’re actively pursuing referrals. When friends talk about their work, find ways to help them, perhaps by sending prospects their way, and ask who they believe might be able to use your services. In the end, your enthusiasm and passion for what you do will shine through, drawing others to you.

Contact marketing expert Kim T. Gordon, author of Bringing Home the Business, at www.smallbusinessnow.com.