management series

Establish business networksA resource for:BSBREL401A Establish networks

Establish business networksA resource for: BSBREL401A Establish networks

small

m a n a g e m e n t S E R I E S

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Small BusinessT R A I N I N G C E N T R E

The Smal l Bus iness Tra in ing Spec ia l is ts

Copyright MINISTER FOR EMPLOYMENT, TRAINING AND FURTHER EDUCATION, acting through TAFE SA, Government of South Australia 2010

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We wish to acknowledge the help and advice provided by the Steering Committee for this project.

Len Alabaster Business Enterprise Centre, Holmesglen Institute of TAFEAlan Daniel Curriculum Maintenance Manager, Chisholm TAFEElaine Egan Western Business Enterprise Centre, Victoria UniversityMary Faraone Business Skills VictoriaLinda Smart TAFE frontiersShirley Smith Swinburne University, Business Enterprise Centre

Contribution & AuthorshipThis document was developed by TAFE SA, Adelaide City Campus, Small Business Training Centre in association with TAFE SA Learning Materials.

TAFE SA, Small Business Training CentreWriter: June HopeEditor: Marian Jaquiery

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GuideThis publication has been developed in line with the National Training Package/curriculum for use within the learning programs of TAFE SA and is based on a philosophy of flexibly delivered, competency based education and training.

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Published in 2002Reprinted November 2005Revised August 2010Revised November 2010

ISBN 1-86506-694-X

Published by TAFE SA Learning Materials 03.001.4320-E7

The SMALL BUSINESS MANAGEMENT Series Establish business networks | TAFE SA 2010, TAFE SA i

Aboutthisresource

This resource has been written to provide the underpinning knowledge and skills for the Unit:

4 BSBREL401A Establish networks

In meeting the requirements of this unit, we believe it is important to present the information within the context of owning and operating a small business. Good networking can give a small business a competitive edge.

Completion of this Unit will count towards the qualification:

4 BSB40407 Certificate IV in Small Business Management

The SMALL BUSINESS MANAGEMENT Series Establish business networks | TAFE SA 2010, TAFE SA

Contents

About this resource i

Introduction 1

Developing your networks 3

What is networking? 3The benefits of networking 5Where to start your personal networks 8Tapping into your networks 8Chapter review 10

Strategies for successful networking 11

Developing networking strategies 11Becoming a confident networker 13The skills for networking success 14The important business card 17Steps to networking success 18Now you have a network, what will you do with it? 21Chapter review 22

Managing the information 23

Collecting reminders from others 23What to do with the data 25Using your database 26Chapter review 27

Promote the business 29

The power of image 29Being seen 32Monitoring your activities 34Chapter review 35

Developing and maintaining business relationships 37

Business relationships 37Negotiating for win-win outcomes 41Chapter review 43

Information about networks 45

Finding and choosing networks 45Starting your own network group 47Chapter review 48

Mentors 49

Why have a mentor? 49The mentor/mentoree relationship 51

Conclusion 53

Additional resources 55

Feedback questionnaire

The SMALL BUSINESS MANAGEMENT Series Establish business networks | TAFE SA 2010, TAFE SA 1

Introduction

This unit is about promoting your business using appropriate network strategies. Networking is a pro-active way to dramatically expand your contacts and your opportunities. It is an exciting and fun way to make friends, do business, gain work opportunities, expand your personal skills indeed to help others whilst helping yourself! It is the way of the future and a practice that is increasing every day.

All it takes is a good dose of confidence, some time, perhaps a few dollars and you are on your way. Networking can change your life for the better. It doesnt matter who you are or what you do, everyone can gain from what we all do naturally communicate!

The purpose of this course is to shed light on how you can use the power of networking to your own advantage and also that of others. It is a legitimate and effective way to achieve win-win, mutually beneficial relationships that will result in gains for all involved.

This course has been designed for people from all walks of life. Business people will learn how to increase business and create new opportunities, people looking for work can enhance their job search activities and everyone can expand their own social, career or professional activities simply by using the concept of networking.

Many people are sometimes shy or lack confidence and are uneasy talking with others about their own activities and needs. They often dont know how to promote themselves and their business activities or to ask others to assist them with information or contacts. And they certainly may not see that they have much useful information to share with others. So this course will assist those people and others who want to learn new and valuable skills about communicating and building mutually beneficial relationships.

On completion of this course you should be able to:

4develop and maintain business networks

4establish and maintain business networking relationships

4use networking to promote your business.


Developingyournetworks

What is networking, what are the benefits of it, and where do you start? In this first chapter, you will learn about the power of networking as a tool for personal and business success and find out that you already have a large network to access. Later you will use this information to undertake networking activities for a specific purpose.

Whatisnetworking?

This question has been asked many times. People say I hear networking mentioned, but I dont know what it is.

In the past, the term networking has often been associated with the computer industry, a network being the linking up of many individual computers within a company to a mainframe master-brain computer system.

In recent times, there have been many types of networks established for different, often specific purposes. Networks have sprung up to provide assistance and support to people in certain commonly related areas like business networks, industry-specific networks, public speaking and special interest networks, social networks, womens or mens networks and so on. Sometimes networks are formed simply as a way for people with common interests to get together on a regular basis. Clubs are another form of networks. If you work in an organisation, you already have a large network into which you can tap.

TAFE SA 2010, TAFE SA | Establish business networks The SMALL BUSINESS MANAGEMENT Series 4

Networkingisnotnew

Historically, the concept of networking has been around for thousands of years, it has just not been called networking. Traders conducted business with each other and referred their colleagues. Word of mouth promotion of business occurred, which is another type of networking.

Over the past years, the power of networking has been identified and used to encourage individual businesses to work together and form hard networks to produce new products or services for a specific market, often for export. Support, resources and encouragement may have been provided for these types of activities by government or other sponsoring organisations.

So, there are networks for just about anything these days! You probably dont realise just how many networks you really have.

Network marketing is a recent term developed to describe the use of networking as a way to sell and distribute goods. Many organisations are selling a huge range of products using this system. Whilst the networking approach can be used for this purpose, the concept of networking has a far broader application.

Then what is networking? Put simply, networking is something you do all the time, you just dont always call it that. It is to do with meeting people, developing relationships and communicating talking, listening, exchanging and sharing ideas. However, it is doing these things in an active, intentional way, that is, with a purpose.

We speak in order to communicate our ideas or needs often for a specific purpose. This gives others an opportunity to assist or respond to us.

We listencarefully to understand how to respond to the other person or to either assist them with their needs or enable them to assist us. Either way, this type of communication is of mutual benefit.

Networkingisaboutsharing

Networking is about sharing information, ideas, contacts. It isaboutgiving andreceiving these that creates a win-win situation for all. Networking is not just taking, and not about what you can get from someone. It is about giving and doing something for others, that is, about developing and maintaining meaningful relationships based on trust.

We all like to feel valued and important. You know how you feel when someone gives you something unexpected or does you a favour. You feel good, right? So, if you are able to do something for others, it shows that you value them, and that makes them feel good. You can bet theyll remember you! However, networking must be a sincere activity as fakes are soon forgotten or worse still, avoided. Part of sincerity is following through. If you say youll do something, then do it, otherwise you could end up with a bad name!


Networking is about developing contacts with people with whom you can build a rapport and who may provide information, leads, referrals, support and encouragement if and when its needed. How reassuring and comforting this can be! Of course, as a good networker you will be offering to do the same.

People do business with people they like and feel good about. Networking creates opportunities to build on those relationships. This can then flow into business or job opportunities, or an invitation to a function you may never have been able to access. In a larger organisation, it can also help improve communication, reduce alienation and maximise resources. Be aware though, that networking is not necessarily a short-term immediate result activity. It is a long-term strategy building relationships with people and therefore needs to be actively worked at.

We all know someone-who-knows-someone-who-knows-someone. Networking can give this random knowledge a structure so that it becomes more effective and efficient than when you rely on your memory or worse still, on someone elses. When this structure is used effectively, youll start to create your own luck. Being in the right place at the right time is often a result of good networking.

Thebenefitsofnetworking

Humans are social creatures. Our society is such that in almost every area, we need to inter-relate with others. Networking is an effective way of doing this for mutual gain. It might eventuate in generating a multi-million dollar business contract as in the case below or it may be just the warm fuzzy you get from helping someone. If you believe the sayings give and you will receive or reap what you sow, then giving away should bring a multiplier effect to your own life and to the people with whom you network. Remember, networking is about giving you to others, others to you, with no expectation of anything in return!

Case study

Sam had an extensive business network in Europe. He wanted to export specialised products from Australia to his country in Europe, but as a newcomer to Australia, he did not have trusted business associates here. John had developed his specialised products and wished to export them to Europe. He had no contacts and was unsure whether his products were even suitable for the European market. Beth teaches small business programs and had conducted a workshop that Sam had attended. He had told her of his ideas and his frustration. Beth later attended a Business Network meeting where John had been given the opportunity to profile his business by making an informal speech to the network group. After his presentation, Beth eagerly approached John and asked if hed like to meet Sam. Today Sam and John have combined their networks and are involved in exporting millions of dollars of specialised products to Europe. Networking at its best! A win for all.


Howcannetworkingbeused?

It doesnt matter whether you work in a large organisation, a business with a few staff or at home, networking is something everyone can benefit from.

Networking can be used to:

4gain or increase business opportunities

4expand your business and your contacts

4gain new work opportunities

4expand professional contacts

4raise your profile

4share resources and information

4benefit from collective buying

4expand social contacts and opportunities.

As a simple example, you could bring together a group of friends or associates for a theatre or restaurant event and negotiate a bulk purchase deal this is a way to enjoy the benefits of a network in a very real sense. You may even set up this group as a network which others can join and you can then arrange functions or events on a regular basis. As a group, a network will have far more drawing power than an individual or very small group. So it is possible to secure some terrific guests or speakers on relevant topics who will also benefit from the chance to network with you and your group. If you ask others to bring a friend then you all expand your networks. Its a win-win situation for all!

Whatcanbegained?

Good networkers constantly give away contacts, help, information, advice, time, care, empathy, and even a friendly ear or shoulder to lean on. In return they receive:

4new contacts for their own networks

4contacts to whom they can delegate or share workloads in busy times

4opportunities to share cooperative work arrangements

4opportunities to expand the range of products/services offered by their business by using those provided by others, for example, the photographer who can offer framing because of networking with a picture framing business

4improved buying power to attract better deals both in business and socially

4new or increased professional and personal opportunities


4the support of others, which is sometimes needed by all of us

4the chance to feel good about passing on something of value to others

4the creation of an opportunity which may come their way in the future

4the opportunity to share new ideas and information

4reduced marketing costs due to referral business. Some businesses are almost totally built on referrals, for example, accountants, health practitioners, and lawyers.

The following case study is a true story illustrating the importance of networking and of understanding what it is and how it may be of benefit.

Case study

An Australian woman who had lived overseas for 10 years, returned to Australia to find work or to set up her own business within the specialised field of her expertise. She had given up a well paid position in Europe to return to her native country only to find work opportunities limited. For 2 years she attempted to gain work believing her experience to be enough to secure a job. Meanwhile her employer in Europe was tempting her to return there. She decided to return to her well-paid European position and the knowledge of a secure future, although not in the land of her choice. After a discussion about networking, she said that her big regret was that she had not used this powerful tool to try to gain employment here. Now it was too late. She had not really understood what networking was all about and believed it to be using people for your own gain. After discussions shed come to a different understanding about the importance of using your networks. She said, If Id used my networks, which are quite impressive and extensive, I know I could have gained work and recommenced my career in my home country. Now its too late, my plane leaves next week!

This unhappy tale shows the misunderstandings many people have with regard to networking.

Activity 1.1

Write notes about (or discuss with a partner) your understanding of the concept of personal networking. Consider different aspects of your life, including your personal and professional areas. Think about how networking may benefit you in both these areas of your life.


Wheretostartyourpersonalnetworks

It is said that each of us has a personal network of at least 300 people and, for many, it is much greater. You might think this is not realistic, but if you consider your own situation, it may be much larger than this.

Think about yourself and the people you know in all the different areas of your life and you may be surprised how large your network really is. If you add in their partners, friends, colleagues and so on you start to picture the larger web that you can access just by asking. This web is often overlooked when people are seeking answers to questions, or trying to solve problems, find support, gain employment or develop business. If you work in a large organisation, consider all your work colleagues, then add in their contacts and already you have access to a large network.

Activity1.2

Keystepstoidentifyingandbuildingyournetwork

1 If you think you have never networked before, take a large sheet of paper and write down your immediate friends and family. Use big sheets of paper, its amazing how the list grows! Or, start by thinking of all the people youve spoken to during the past week.

2 Next to each name, write the name of another person they know or you know through them.

3 Add names as you remember them. Keep coming back to this exercise, youll remember people at the most peculiar of times! Surprise you really have got a network after all!

4 Now write down what work the people on your lists do, or what business or organisation they may be in, what their interests are, what information they may know, indeed a short summary of what you know about them. You never know when this may come in handy, if not for you, then perhaps for someone else in your network.

5 Now start another list the same way, but of work or business associates.

6 Add your social contacts think of the people at your childs school or kindergarten, the local tennis club, social group or church. Use any association you like, the principle is the same.

Tappingintoyournetworks

Decide what area of your life you wish to expand your contacts in, or what information or contacts you want to refer to. It may be to find a job, join a new business association, increase business, pass on information, achieve personal growth or maybe just stretch your social life and meet new people. You may simply want to access certain types of information.


Look at your list of contacts from Activity 1.2 and choose those whose help you may enlist. Remember asking for help acknowledges that the person is able to help. This makes them feel valued another win-win!

Somestepstohelp

4Setting some goals Write down who you will talk to, what about, what you may want them to help

you with (be clear) and what you want to achieve. Keep a record of this and follow it up. Enter the follow-up date in your diary.

4Keeping a record If you are looking for a job or trying to increase business, keep a database, either

on computer or on a card file, or just a list in an exercise book, but always keep a record of whom you have spoken to, when, where, about what, what information was obtained and when to follow up. Never underestimate the importance of this. It is hard to remember things when youve spoken to many people and time has passed by.

4Using your diary Mark time in your diary when to follow up your contacts and do it! If you let an

opportunity pass by it will. Good networkers are never without their diaries. Dont commit things to memory. And lookatit! Many people forget to look at their diary and miss appointments or let people down. Make it a habit to look in your diary last thing at night and first thing next morning. That way youll be able to effectively plan your day and fulfil your commitments. For electronic diaries, have a backup. A diary based on a computer is fine if you are in your workplace, but is not effective if you have been to a function, met someone, made an appointment and dont know if the date is available. This can be embarrassing. A mobile diary is best.

4Updating your files When you have followed up the person, update those records on a regular basis.

Never trust your memory.

Activity1.3

Build on your list from Activity 1.2 by developing a map of your immediate contacts. Include your partner, family, friends, neighbours, social contacts, work colleagues, people in the local community and so on. Again, consider who they may know. Also think about your past contacts; jobs youve worked in, people you studied with, played sport with.

Can you see your network building? How might this network assist you? This activity will aid your assessment task.


Chapterreview

This chapter examined the concept of networking and how it can be used for personal and business success. You will have discovered your own extensive personal network which will be useful for many purposes.

In the next chapter, you will learn techniques to network effectively, what to do to build relationships and how to gather useful information to assist you develop a valuable business tool your database.


Strategiesforsuccessfulnetworking

This chapter shows you how to get the most from your networking activities, and provides tips and techniques and a six-step easy plan to make your experience rewarding. You will also identify some useful information to help you develop a database.

Developingnetworkingstrategies

Firstly, you need to be clear about what you want to achieve by networking your intention and purpose then set goals around these. The next part is to act, and sometimes this is the challenging bit as many people are not naturally comfortable meeting new people and speaking about themselves and their business. So, understanding who you are, developing a meaningful and succinct way to speak about yourself will alleviate some discomfort.

Identifyingwhoyouarewhatyouwant,whatyoudo

You need to know who you are in the context of the networking you intend undertaking. This could include what your business is if you are in business, what your position is within a company if you are employed, what your skills, ethics, personal attributes and interests are. If you dont have a job, then consider what you have done or do and how you would describe yourself. The latter are especially important if you are using networking to look for work. You may be asked what you have to offer and why a business would benefit from hiring you. You need to know these things and be prepared to explain, rather than being put on the spot. Remember, you never know who youll meet or when. So a little planning is helpful.


Case study (Part A)

Jose was newly arrived in this country. He has a naturally reserved nature, is inclined to work on his own, and finds marketing challenging. He knows he must not allow these hurdles to impede his business and understands the importance of networking to develop opportunities both professionally and personally.

Well follow Jose throughout this chapter.

Determiningwhatyouwantfromagroup

Spend some time thinking about what your goals might be in different areas of your life and how networking might help you achieve these. Perhaps a work goal might be to increase your profile within your organisation or professional arena or to expand your business contacts. This could be achieved by attending a network attended by your peers. It could be an industry-specific or professional group. You may also want to improve your public speaking skills, so need to access a group that provides these opportunities. Socially, you might decide you would like to meet new people with an interest in a specific area, so would look for a group focusing on these areas.

You may have different groups of people for different purposes, but whatever the purpose you should have some clear idea about what you want from that particular contact.

By fully understanding what it is you want from others, for example; Im looking for a job as a ... or Im in the business of ... or Im seeking information about.... or Im here to meet new people or hear interesting ideas... you give a clear message to other people regarding how they may relate to you, use your products or services, link-in with you, or offer you their services, information or assistance.

Case study (Part B)

Jose had some clear goals: to improve his English, gain the confidence to speak to groups, find suppliers of certain services, develop relationships with his peers and meet new people in a social environment.

Introducingyourself

You need to do this in a concise way that is interesting to the listener as this will encourage them to ask questions. When you tell others what you do, they may one day refer business to you. If you are in business, make sure you can describe what the business is briefly about 10 words or less and dont waffle. The same applies when telling people what you do. Waffle is unprofessional and doesnt inspire confidence in you or your business. Practice creates confidence and you will feel more comfortable if you have a sound knowledge of what you will say on these occasions.


Frame your description in terms of what your business does for its customer, the benefits, rather than how you do it. For example, take Jason, who is a builder. When he introduces himself, he describes himself and his business as we build dreams more interesting than Im a builder. This style of introduction creates interest, sets Jason apart from other builders and opens the path for questions.

Casestudy(PartC)

Jose is a natural health practitioner. He uses different techniques to alleviate his clients conditions. He developed an introduction which spoke in terms of the benefits his clients received from his services rather than how he did it. I help people feel more energetic and healthy. This opens up the discussion as the listener can easily ask How do you do that? A little more interesting than Im a health practitioner. It is a closed statement that doesnt automatically lead anywhere.

Activity2.1

(a) Consider different areas of your life, for example, work, social, relationships, interests and so on. What aspirations and goals do you have in each of these? How might networking assist you to achieve these? Develop a set of goals that involves networking in each of these areas.

(b) Develop and practise your introduction using a simple description which says what you do, not how you do it.

Becomingaconfidentnetworker

Successful networking requires certain personal qualities and skills. If you are not a natural, these competencies can be learned. Sometimes a lack of confidence inhibits people but, again there are strategies to overcome this.

Moveoutofyourcomfortzone

We all operate within a comfort zone, that area of activity in our life which is known to us and is therefore comfortable. But to take advantage of the process of networking you must move out of this zone, even for a short time. Whatever the reason for your networking and particularly if you are looking for a job, or promoting your business, then you need to participate in as many functions and meetings as possible. Remembering the purpose of your attendance and your goals will help. Some attendees may in fact be potential employers or business contacts.


Many people are by nature quite shy, so for them it can be difficult and uncomfortable overcoming nervousness, especially on first occasions. If your confidence is a bit shaky, take a deep breath and go forward. After all, what is the worst thing that can happen! Perhaps telling the organiser of a function that it is your first visit might help. They may find someone to introduce you to start the ball rolling. Or perhaps you could find someone else to go with you to an event, just remember the reason you are there to meet others. Dont stay comfortably talking all the time with your new acquaintance or friend! Move on and meet new people.

Beanactiveparticipant

When you get there, participateactively in the event. Talk to people, ask questions, tell people what you do using your practiced brief introduction speech. After the event, follow up. Pick up the phone and call someone who has been recommended to you. You never know where it might lead. Good networkers follow leads.

Remember attitude affects successful networking. If you are glum and withdrawn or aloof and remote, your body language and posture reflects this. If you sit in a corner looking forlorn and feeling pessimistic, you will only re-enforce your own negative feelings and believe you shouldnt have attended at all! Others are not attracted to negativity.

But if you are bright and smiling you will radiate confidence and optimism. People will more easily be attracted to speak with you and you will leave a positive impression. If you really dont feel that way then actittillyoubecomeit!Your mind doesnt know the difference between reality and what you tell it. Remember, we all need to start somewhere and even most high profile celebrities suffered from a dose of nerves.

Be kind to yourself. As you saw, setting goals is important but equally so are rewards. If you have stretched yourself and built up enough courage to go to your first meeting, give yourself a pat on the back. If you asked a question and/or met your target of new contacts, then congratulate yourself again.

Theskillsfornetworkingsuccess

Communicatingsuccessfully

To be a skilful networker you should have well-developed communication skills. These include the ability to actively listen, maintain eye contact, ask meaningful open-ended questions, which encourage and invite participation, resulting in useful feedback. Additionally you should be aware of the non-verbal forms of communication the impact of body language, posture, facial expressions, tone of voice, and so on. All these factors speak volumes to others.

Additionally, you need to be assertive and easily able to move on from a situation when it is appropriate. You should be inclusive of others and not overbearing in discussion. Be clear and concise when communicating about yourself and your business or work and engage the attention of your listener when doing so.


To be a successful and sensitive networker you need to know that, when communicating with people from other cultures, some actions, words and gestures may be offensive, so be considerate of these. If you are required to conduct business with people from another culture, seek out information about cross-cultural communication. There are books, courses, websites and consultants who specialise in such matters.

Presentation and public speaking skills are very useful as there may be chances for you to present information to your groups. A willingness to seek out these openings can create excellent opportunities which might not have otherwise been accessible to you.

Asummaryoftheattributesofagoodnetworker

A successful networker will have the following attributes:

4an opportunity-focused outlook, seeing and seeking openings to talk about what they do, share information or enquire how they may be of assistance

4 a positive, can-do, optimistic attitude

4 a pleasant disposition

4 a welcoming demeanour

4 a smile therefore embracing and encouraging others

4 the ability to include others

4 a well groomed and appropriate appearance

4 confidence

4 respect for others

4 tolerance towards other ideas, backgrounds and so on

4 communication skills that do not dominate

4 good listening techniques.

Activity2.2

Using the following checklist, rate your networking skills. It is useful to identify areas that could be improved and develop a strategy to do so. You could discuss this in a group situation or with a colleague or friend and write up a plan to improve your competence.

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