John Jones, a director of Applicable.
"Business comes out of relationships," says John Jones, "just like orange juice comes out of oranges."
Jones is a director of Applicable - an Auckland-based firm that builds custom web, app, and software as a service systems - and is a firm believer in the power of building relationships, reckoning more than 90 per cent of his firm's work comes from networking or referrals.
"Networking built the business; we simply wouldn't exist otherwise," he says. "The company was bootstrapped into existence out of basically nothing; I never had money for marketing until recent years. It was very much a 'get out and find work or quit this business thing and get a job' situation. Maybe I could have tried knocking on doors but considering I hate doing that, networking was the only palatable way I found to connect with our target market."
Jones is among a handful of small business owners I've interviewed on the topic of networking, and who this week share their insights into some of the different channels they use to network and their tips and strategies for making the most of such opportunities.
Like many of those interviewed, Jones casts his net fairly wide when it comes to networking, tapping into a range of channels and groups to meet others and build business relationships.
"I basically try out any events, meet ups and online groups related to our industry or that are likely to attract people in our target market. And then I just stick with the ones that prove worthwhile," he says.
Anthea Baker is the owner of Homebase, an Auckland-based home staging, furniture hire and interior design business. She taps into a range of networks including Business Networking International (BNI); her local business association, the Rosebank Business Association; and the women-in-business focused Auckland Executive Club. She also gets involved with functions involving contacts in the real estate industry, who are a key source of referrals for her business.
"Some great friendships are born out of these types of groups and they can provide a support network where people can share their experiences. It can make the rollercoaster ride of being in business so much more manageable," she says.
Business comes out of relationships just like orange juice comes out of oranges.
Baker describes herself as a 'people person', and many of those interviewed this week could be considered 'natural networkers'. But it seems where you sit on the extrovert/introvert scale may be less important to networking success than some might think.
"I've always been a talker, but I've learned networking is actually about listening," says Andrew Malcolm, managing director of startup firm Broker Better. "The key is to ask concise questions and allow the other people around you to do most of the talking."
Broker Better is among the digital startups currently in residence at the Lightning Lab accelerator, where networking - often with potential investors - plays an important role in putting the rocket boosters under young companies.
"We've learned that people resonate with enthusiasm and a quick, concise pitch," says Malcolm. "Preparation is everything, because if you know a lot about the person you're meeting with it can save time and I think it demonstrates professionalism...Generally people want to help, so I think it's best to be really clear about how you think they actually can do that."
Emily Wheeldon is the managing director of Human Connections Group, a Dunedin-based recruitment and HR solutions business, and a founder of Stepping Stone NZ, which provides online job seeker and career support.
Originally from the UK, Wheeldon landed in Dunedin with her young family a couple of years ago after eight years' working in Sydney. She networks through a range of groups - both online and offline - saying it has been essential when building a business in a new city and country.
While networking is something that comes fairly easily to her, she thinks anyone has the ability to network, no matter what their personality type.
"If you have a product or service you believe in it's never hard to be passionate telling people about it. I think it just comes down to picking the right networking group," she says. "For less confident people, I think a good 'wing person' - a friend or work colleague - will make the whole process less daunting, especially for the first few events until you find your feet."
Many of those interviewed on the topic also mentioned that networking involved a significant investment of time - often outside of regular business hours - for success.
Bob Weir - a founder of the Hamilton-based small business advisory Pinpoint Business and author of the Under 5 Small Business Guide - says successful networking is about building relationships based on trust. As such, busy small business owners need to be prepared to look at it as a long-term investment and think about how they use their time strategically.
"Small business owners are really busy, so they don't have a lot of time, so rather than take the easiest networking option they need to look at what's most likely to build value," he says.
"A lot of small business owners stick with the same old forums they're comfortable with, which means it's just socialising, and not networking. But networking is an effort to push yourself as widely as possible into new circles of people who will help in growing your business - not hanging out with the same crowd you're comfortable with."
John Jones is a director of Applicable, which builds custom web, app, and software as a service systems. The Auckland-based firm has seven staff.
Can you tell me about the role networking has played in growing your business and why it's important to you?
Networking built the business; we simply wouldn't exist otherwise. The company was bootstrapped into existence out of basically nothing; I never had money for marketing until recent years. It was very much a 'get out and find work or quit this business thing and get a job' situation. Maybe I could have tried knocking on doors but considering I hate doing that, networking was the only palatable way I found to connect with our target market.
More recently we've started trying out some marketing avenues, but more than 90 per cent of our work still comes from networking and referrals. What's more, I personally know of at least two B2B services companies with more than 150 employees where personal networks are still the source of most of their projects - so I know it works.
Can you tell me about the channels you use to network?
It's a long list. I basically try out any events, meet ups and online groups related to our industry or that are likely to attract people in our target market. And then I just stick with the ones that prove worthwhile.
Of them all, Entrepreneur's Organisation has stood out. EO is an international peer-to-peer learning organisation with about 50 members in New Zealand and more than 10,000 globally. You can't pitch to other members - they have to approach you directly if they're interested in doing business with you - but I think that just makes for a better atmosphere.
EO is as much about learning, mentoring and self-development as it is about meeting people. Of all the groups I have experience with, it's unique in the way it facilitates getting below the surface and forming meaningful connections with other entrepreneurs. It also has amazing global reach for people looking to network beyond New Zealand.
Do you think you're a born networker, or are these skills you've had to learn?
I do enjoy meeting people and wracking my brain looking for opportunity. I don't just mean for me - sometimes it is, but other times I see potential for the person I'm chatting with, or some value in connecting them with another contact I know. So yes, in this area maybe I am a born networker, but on the flip side I'm a little bit of an introvert by nature. There are lots of times when I do have to push through and make an effort to be outgoing.
I think for others like me, who aren't outstanding socialisers, it's encouraging to know that one great networking skill is active listening. Anyone who takes a genuine interest in others, asks questions and actively listens to what people have to say should do fine.
What are some of the practical things you do to make sure the connections you make through networking have a positive impact on your business?
When I first meet someone I like to listen, but at the same time I look out for opportunities to share something of value, add some creative idea, connect them with someone, or just to be encouraging. Afterwards I follow up with anyone who seemed like they could be a potential client, referral or a worthwhile contact - not in a hard-sell way, but just with a short 'good to meet you' kind of email or LinkedIn request.
If it's appropriate I'll sometimes suggest we meet up for a coffee and in that meeting I'll continue to look out for ways to be helpful, although having a process like this is completely secondary to simply getting to know people and building relationships. Business comes out of relationships just like orange juice comes out of oranges.
What are your top tips for others wanting to be successful networkers?
• What's worked for me is getting off my butt and doing it, adding value and trying to genuinely get to know people rather than just being a huckster out there chasing leads.
• Don't come on too strong. One of the worst things I have ever seen was someone turning up to a long table of people at an event and walking around the table putting their card in front of everyone. It just screamed 'prospecting' and felt like they only saw you as a number in their sales metrics.
• It's always worth remembering to smile; sometimes I think that might be half the trick.
Coming up in Your Business: When the days get shorter and colder it can be more difficult to make time for activities outside of work. What are some things business owners do to inject more balance into their days so they also maintain a life outside of work? If you've got a good story to tell about creating work/life balance, drop me a note: nzhsmallbusiness@gmail.com
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