Something for Nothing

Posted: May 11, 2012 in Business Networking
0

As a finance broker, I work and engage with many independent sales types of people and other brokers doing a variety of finance business. I recently encountered a person which is the antithesis of good networking. This person considered themselves a jack-of-all-trades in the finance world professing the ability to get any deal done. A finance request came across my desk which was clearly not in my specialty having to do with a leveraged type of real estate transaction so I gave it to him and I was in for the ride.

First of all, I had to sign a detailed non circumvent, non disclosure type of statement which is common for the most part but this one really gave him the right to control the relationship of every person that I may possibly encounter while working through this deal. In other words, he wanted to benefit in every single case where you might make a connection through him even if it was unrelated or at a later time. He demanded being copied on every email and constantly being updated on every conversation so much so, that it made working through the transaction almost impossible. Finally, all parties involved got fed up with him and the constant meddling and controlling manner of this individual that the deal got killed and everyone walked away in disgust.

Was this networking? Was there trust involved or any type of relationship established? NO. Doing business with another partner or someone in your network, even when there is mutual compensation, requires trust which is established on mutual understanding and respect. In this case, trust was never given the opportunity to be established and instead created a shallow feeling of just going through the motions.

If I introduce you to someone and you benefit from it, should I demand something back? Of course not, but you would be surprised how many sales people in the field feel differently. If I give to you then I trust that you will, in some way, give back to me and if there is no reciprocity then the relationship ends. But there has to be a chance for it to begin somewhere.

My preference is to trust people, try to help them knowing that I’ve been helped by others without a chance to help them back. It’s a circle and attitude that always will come back to help you in the long run; your network should work the same.

Networking on the Margin

Posted: January 24, 2012 in Business Networking
Tags: , ,
0

Living on the margin, in any capacity is not healthy. If you make $50K and you live to your means and spend $50K then there is no room or margin for error. In other words, when those inevitable breakdowns happen, you get stressed and have to scramble for the extra money making life a little tougher. Doesn’t the dishwasher or your car transmission fail at the worst times? Typically, as we make more money, we spend more money because isn’t that the reason we strived to make more money in the first place? It’s definitely a consumer mindset we are all vulnerable to and upon which the media and advertising directly focuses on since it’s our obvious weakness.

Networking on the margin is equally as stressful and detrimental as living on the financial margin. You go out to events, shake hands, pass out cards, chit chat and move on to the next event. Once you go to one mixer, sure enough you will be invited to others and as you gain momentum, you will see your weekdays and nights filling up with events. At first you feel great; most of us are animals that by nature like to be included in groups because it strengthens our sense of belonging and self esteem but soon you find yourself with no “down time” to follow up and strengthen those valuable relationships which you made so much effort to initiate in the first place. The margin allows for those spontaneous meetings which often come up because someone wants to review an idea or project with you. How can you have time for those unplanned events when you’re rushing around from one group meeting to the next? If you try to squeeze everything in then you end up short changing your business and family because you won’t have enough energy to juggle all of it. Networking and allowing yourself time to follow up, make calls and spontaneously set up meetings with key contacts is only possible when you have allotted scheduled gaps of time to be free.

The margin in your life, whether it’s financial, networking, relationships or whatever you invest your energy into is that gap of resources which you don’t allocate and leave open and free to allow for the unplanned events which happen in life. My feeling is that special things happen in the “margin” because since circumstances and our energies are always shifting, it always you to accommodate for those events in a stress-free fashion. Living below your means, only keeping a handful of close relationships near you, networking within your capacity to follow up and build strong relationships makes life much more manageable and productive.

When Word-Of-Mouth Networking May Not Be Enough

Posted: December 9, 2011 in Business Networking
Tags: , ,
0

Aghast, I’ve said the unmentionable; your word-of-mouth networking strategy may not be enough to help you reach your business goals. For those super ambitious business people out there running around from chamber meeting, to mixer, to ribbon cutting, to your networking group meeting and not seeing the results you anticipated, it’s time to stop and reevaluate your overall strategy.

I am the number one advocate for referral word-of-mouth marketing and truly believe that to be successful, it has to be a component of your marketing strategy. But my feeling is that it can’t be the only part of your strategy unless you plan to retire soon. As part of my informal study, I spoke to my local chiropractor recently and learned that he gets a steady stream of business from his networking group which is the only form of marketing he does consistently; excellent results but he’s the exception. Why? Because when I researched a little deeper, he happens to belong to a networking group which consists of seasoned business professionals who are all very active with their marketing and community involvement. The chiropractor benefits because his “team” has a multitude of marketing channels other than network marketing which brings many opportunities to his plate. But what if? What if this wasn’t the case; his results could be completely different.

My second study was a massage therapist which was in a group not as dynamic as the chiropractor’s group. She got a few referrals a month even though she was involved in many aspects of her chapter but her business was stagnant and not growing. Yet she continued plodding along going to more mixers, events and networking meetings because it had been drilled into her that networking would be all that she needed to be as successful as she envisioned. She didn’t advertise online or in print or any other way and she was adamant to keep doing what she was doing. Her networking was not working and after some long discussions with her it revealed that because of her specific situation, she needed to get her brand out in the community on a wider more intense scale.

My final study was an attorney. He’s been in his networking group for several years and his chapter averages about 25 members. He is always upbeat, energetic and seemingly very busy. I sat with him to discuss how he achieved his level of success and he detailed a well thought out marketing strategy which included marketing his website with SEO, email campaigns, social media which included regular blogging and article writing. He also engaged in direct print mail advertising and regularly spoke as a guest expert for the local radio station. He basically blitzed the local market with his message from a variety of angles and it worked very well for him. Though his networking group got him some of his best accounts, his other media marketing also brought him considerable business. His marketing mix never left him vulnerable; when one channel slowed down, the others were still producing new sales leads for him.

The point is that we cannot rely on one medium or channel to build up and promote our businesses for the long term. If you put all your chips on network marketing then you may not reach the level of success you aspire to reach. I see my networking peers year-in and year-out doing the same thing, attending their same networking events yet not really making any progress and quietly complaining about it behind closed doors. Some have gotten into the habit of doing what they do that they hardly even try to make solid connections anymore. Why? Because telling people about your business and how great your service is and how experienced you are demands using several marketing channels to be truly effective. Take a step back and evaluate your product or service. How broad of a potential customer base are you trying to reach and how many outlets of marketing are you using to reach that segment? It you are only using 1 or 2 avenues then it may be time to expand and explore more strategies to reach your goals.

Equipment Financing and Business Networking – Both Go Hand in Hand

Posted: November 14, 2011 in Business Networking
Tags: , , ,
0

To work in the finance services industry, whether its financial or estate planning or business financing, requires an individual to establish a great deal of trust with their client. The type of trust which necessitates a person to disclose all their worldly possessions to someone else, follow their advice and allow them to make key personal and business changes for them. Not only is personal and business information disclosed but decisions are made which can affect each area on a long term basis, and in some cases, for a lifetime.

Successful financial professionals traditionally have been required to invest years and years in establishing themselves and building their brand and trust factor. In the past, you didn’t get into the industry unless you were prepared to devote a good portion of your life. After time, people simply figured if you were around for twenty years then you must be doing something right.

So how does this relate to business networking with regards to services like equipment financing? To become highly successful in financial services it requires that you learn, understand and follow the core values of networking. Every business can truly benefit from building a strong network but since trust is so keenly vital to financial services, I feel it’s most relevant in this case.

Professional networking organizations like Business Networking International (BNI) base their foundation on the concept of “givers gain”; I give you business and you will reciprocate. But at the heart of that belief is the fact that it is primarily built on trust. Each person must trust the other to do the right thing, both with their intentions and capabilities. Business networking can accelerate the development of trust amongst our peers and networks because by following a system like BNI, you will learn to develop targeted skills in this pursuit. Skills which guide you in how to act, dress, what to say and to do the key things which will elevate the trust factor and your reputation much more quickly than if you waited for it to happen on its own.

A financial planner told me once he didn’t need to network because he had regular business referred to him by his old friends. I asked him how long did it take to develop his business and contacts and he replied, “30 years.” Who has that much time? Why not build the same devoted network on a much faster pace with highly predictable results.

A finance specialist or broker or any person in the financial industry can build their name and reputation with a consistent dedicated effort in few short years as opposed to the decades it use to take. This is a key consideration for any profession which requires a high trust factor to be successful. Build a diversified network, develop trust amongst them, follow-up with them on a regular basis and you can establish a foundation for long term success. Business networking and equipment financing are indeed on the same side of success.

Can You Really Do It Better

Posted: August 27, 2011 in Business Networking
0

Have you ever sat through a group meeting and thought to yourself, “I could really run this meeting more effectively” or “If I were in charge, I wouldn’t do it that way…?” We probably all have had thoughts like this because it’s easier to be a “sideline coach” than to be the one actively engaged in the activity and responsible for the outcome. Many groups are comprised of critics rather than “do-ers” and I’m not surprised when I hear walking out of a networking or business meeting on how great the meeting would have been if only so and so had done it this way. My knee-jerk reaction is to suggest to the person to go ahead and take charge instead of complaining and see if it’s as simple as they think.

A leadership role in any type of group, whether it’s your business networking group, religious organization or hobby-related club, places you in a position to balance the needs and wants of many people while striving to accomplish a main goal. Pulled in different directions while trying to stay on course is challenging but this is where the personal growth happens and the longer you stay at it, the more social maturity and wisdom is derived from it. Being the focal point of attention, gaining the respect of others, learning people-skills while being in charge is what many people in business strive for but few will actually take the leap into becoming a president, vice-president, team leader or moderator. Why?

During a presentation, I asked a networking group of 25+ people that if they were interested in building character and quickly improving their people skills, to please raise their hands and the whole room did. Then I explained the fastest way to build these attributes and skills was to take on a leadership role and only a few hands stayed up.

Why don’t we have more leaders? The answer is three-fold: responsibility and work are the first two. It is the responsibility of the leader for organizing the group, getting the job done and for how things turn out. You are the person people will turn to for answers when things don’t come out as expected. The leader puts them self and their integrity on the line which is a large weight to bear. The work involved is always way more than expected; I’ve never heard someone say it was less work than they anticipated. The third and most significant part of the answer is fear; fear of failing, not doing a good job or not doing as good a job as the previous leader. Fear that we don’t measure up, that we will appear foolish or inadequate; it’s a type of stage fright which theatre people deal with regularly.

Those contemplating a leadership role should understand that in managing a group of adults you will encounter the whiners, critics, supporters, spectators, those that engage and those that may undermine your efforts. Once you understand roles that people play, it becomes easier to manage and work with them because you begin to understand their priorities. Aren’t these the same “characters” you encounter in life, in a business deal or on vacation? As a leader you learn to compromise, adjust your agenda and drive toward a specific target in mind. Incredible judgment can be developed as a leader and worth taking on the role at least once in your life. You may not be as effective as you thought but you will have learned a tremendous amount about yourself, other people and group dynamics.

Focus on Your Core Services for Best Results

Posted: July 18, 2011 in Business Networking
Tags: , , ,
0

A business college professor drilled into us that we should always “narrow our focus and stick to it”. In general, it made sense like many of the guidelines in business you hear about but recently it has really made hit home with me. Talking with my business friends over the course of the year which has various careers in health insurance, financial planning, mortgage lending, business consulting and a host of other professions, I realize that all of us are approached or have been presented the opportunity to participate in projects or service requests which fall outside of our normal specialty. When business is less than full capacity, the first inclination is to take any business you can get your hands on; why not, if you have spare time to do it then why shouldn’t you go after other similar types of business.

The issue is when doing something outside of your core service; there is usually some type of learning curve, time which has to be invested and follow through. You can’t simply hang a new product on your shingle; you have to know and learn about it at some level to sell it with any competence. If you get enough of this same type of business, which initially did not fall in your main line-up of products, then you can perhaps consider making it one of your regular service offerings and you have automatically broadened your product business scope. Instead of just selling widgets A, B, and C, now you have A, B, C, D, and E to sell. If all of them are aimed at the same market group and they naturally blend in together you have a good mix. Still consider that you will have to market 5 products instead of just 3 which automatically increase your marketing expense. A printer friend of mine is a successful example of this; he started with standard paper printing products and now offers specialty imprinted items, banners and even car wraps and it all has been a good profitable blend.

But the problem is that more often, we get requests which come from different directions with no two being very similar. In the effort to get more business and satisfy more customers, you gradually become the “jack of all trades and the master of none”. Viewed from the outside, the perception will be that you cannot survive focused on one main thing so you have to do many and your integrity and reputation suffers. One gentleman I’ve known for years offered financing for various projects, then he added merchant card services and a few months later he include home mortgage financing. Just recently in speaking with him, he justified his strategy by saying that if he offered enough services then he wouldn’t have to say no to anyone. After that he added immigration services in helping immigrants get properly documented. He was like the fisherman with twenty poles in the water; problem was that each pole was in a different lake!

Here are 3 guidelines to avoid falling into the “I can do it all” category:

1) Identify your core services and products. What do you really want to do and what do you excel in? Identify your experiences and strengths and market only what you do best. If you are good at analyzing financial documents and think logically then don’t try selling prepaid legal services or including them in what you do. Solidifying an ‘elevator pitch’ will help you narrow your focus because if you can’t state your core business in a couple sentences then you either don’t know what you are focused on or you’re focused on too many things. Become the specialist and avoid becoming the generalist.

2) Learn to say “no”. If you spend enough time networking, you are going to be approached to add some service or market some product or perhaps add a new feature to your core business. Be firm in letting people know you are only focusing on your core expertise. Even attending an information seminar on something which doesn’t your business model is a waste of time. Discipline yourself to stay on track.

3) If you feel inclined to add a new service then always test market your new offering and only add one new service at a time. By only adding one element, you keep your test phase manageable and more importantly, you do not appear to be flaky and jumping around from service to service to your clients. Your goal is to always add another service which will help your clientele and improve what you already do for them. The test phase will also help you evaluate if there is a real sustainable market for your new product or only a unique few clients which fall into this category. In the interest of efficiency and effectiveness, you don’t want to purse a tiny market with little growth potential.

Particularly when the economy slows down, people scramble to make ends meet and tend to accumulate more “add-ons” to their standard product line. It’s a natural tendency, which on the surface seems fine, but it will distract and take away time and effort from your core strengths. During slower periods, it makes better sense to improve and re-focus on your main business. What can you do to improve your main services and what new markets can you penetrate. Can you partner with an adjunct business to pool together a marketing strategy – these are all questions you should be asking yourself to keep your core business intact and on target.

Follow the Leader

Posted: June 7, 2011 in Business Networking
Tags: , , , ,
0

A leader must be decisive, think under pressure, exert good judgment and guide others toward a common goal. The attributes and skills to lead are similar to all leaders whether they are head of their household, lead a networking group or are head of a company or country. The difference is the pressure which one must lead under and the ultimate outcome of their direction; will a botched decision mean you go to war or simply messed up a reservation for your family vacation. We witness the rapid aging process our country’s leaders all go through; as the responsibility increases so does the stress level.

During this time of year all the BNI (Business Network Int’l) chapters go through a process of selecting a new leadership team which goes into command each October 1st. The most important selection is the president or leader of the respective chapter. Like the captain of the ship, they will guide their group through their journey for an entire year. The president becomes the key icon and truly sets the tone of what that chapter will become; will it be an energized group of go-getters or people which enjoy sharing coffee and complaining about their clients on a weekly basis. The president’s energy level, or lack of it, will determine how successful the ship will sail.

A key consideration is that each leader must strive to accomplish the group’s goals; otherwise, if you are just a smiley face then you degrade to being the emcee for your group. For BNI, the main purpose is to generate referrals ($$) amongst its members. That is accomplished by following a proven structure and strategy which has been fine-tuned over the last 25 years. A leader, in any capacity, should be well aware of the main purpose for their organization; few groups have only one purpose but failing to accomplish the main one makes the other ones unimportant by comparison.

It seems like everyone has suggestions on how a chapter should run or how a business should operate but how many, given the opportunity, would actually step up to the plate and take the responsibility of leading? We love the idea of being the main guy or gal but what about the work involved and having to balance the constant desires of the masses. Leaders make unpopular decisions for the sake of the group or for the sake of fair play. Members will gripe at you, ask for special consideration and beg for exceptions; making an exception once means making it forever. But for everyone that has stepped up to take on this role, the reward is one of immeasurable personal insight and growth.

Coaching from the bleachers is one thing but taking on the responsibility of managing or leading a group toward a common goal is quite an experience. If you have the opportunity to become president of your BNI group or any other type of group you belong to then take it and take it enthusiastically. No therapy or motivational books will replace the experience. Are you fair, will you guide firmly yet with empathy? Are you capable of being energized meeting after meeting even when something throws you off kilter?

Here are 4 definitive reasons to take on a leadership role at least once in your life.

1) You are in the limelight; all eyes are on you and all attention is focused on how you execute your role. Perform your duties effectively and doors will open in other arenas for you. Want to expand you circle of influence, add a nice bullet to your resume or expand your business network? – become a leader!

2) Learn about yourself. You have opinions on how to make things better or more effective; we all have had them run through our minds as we sit through any meeting. Now it’s your chance to execute and put your ideas to work.

3) Learn to manage people toward a common purpose; key skills for any manager. But most importantly, learn how to manage adversity and a variety of personalities. How do you handle complainers and others which seem to find issue with everything you do? This experience will inevitably make your decision process more analytic.

4) Develop teamwork skills. Every leader has advisors, staff support and other support roles which help them accomplish their mission. Delegating tasks and assignments in a positive, supportive manner is required to get everyone to work as a unit.

My belief is that leaders are born with some basic leadership attributes but most great leaders develop them through their own efforts and life experiences. My own leadership experience helped me value teamwork and responsibility and has put it in a much different perspective. Now I’m much more likely to contribute, participate and contribute to any group at some level and be less critical of the smaller issues than I was in the past. There is a leader inside each of us and we should embrace the opportunity to allow it to blossom.

Older Entries