How To Get The Most Out Of Business Networking By Establishing Win-Win Relationships

What is networking?

Networking for business is a marketing strategy that is about making friends and forming strong relationships that will help you grow your business. It is said that it is not what you know in business, but who you know.

However, most people have no idea how to network successfully. They think that they are there just to hand out business cards, make a quick sale, and then move on to the next networking club or event to repeat the process.

Why do we network?

Business to business networking is about much more than that. It is about forming strong lifetime relationships and knowing people whom you can strategically use or place either in an advisory capacity, or who can help you find a product or put you in touch with someone who can help you with a product, service or project. So whenever you need help, advice, a product or service, you can call on your network and someone will be able to help you, or know someone else who will. This means that you are no longer alone in your small business, but have immediate access to someone in your network thanks to the relationships you have formed.

Networking is therefore a vital part of your business and a strategy that maximises your exposure and puts you on a platform similar to big business.

So, how do we network effectively?

Use a CRM (Customer Relationship Management System) and make categories for your contacts.

1. Your Database: Everyone that you have ever had contact with.

2. Your Network: People you know from college/university, old colleagues, professionals you know, other business contacts, and people you have met at networking events.

3. Your Inner Circle: About 20 – 50 people who know you well and whom you trust. These people can give you honest feedback and constructive critique when necessary without fear of offending you.

4. Your Board of Advisors: These are 5-7 individuals who are your closest advisors.

5. Family and Friends: The people who know you intimately.

There are 8 Steps to Effective Networking

1. Get your mind ready

If you approach networking with the right frame of mind; that you need to make friends and get to know them so you can be of value to each other. And that you go into networking events with the attitude of “what I can do to help you” it will pave the way for networking success.

2. Develop a Great 60 second “elevator speech”

This needs to grab the attention of the person you are talking to, and be memorable so they remember you. An example: Don’t say “I sell ladies underwear” but say: “I help women look slimmer and taller.” Every woman wants that.

3. Identify the market you want to reach

It is no good saying “everybody” because not everyone will be interested in your product or service. For example don’t say: “I am looking to speak to everyone who wants to retire wealthy” but say “I am looking for men in their forties who want to be wealthy and live the good life in the next ten years.”

4. Decide where to Network

As you can’t be everywhere, there will be times and places that will work better for you. Find networking groups that correspond with that.

5. Develop your strategy

If you are prepared beforehand there is nothing to fear. Write out and practice what you are going to say, and plan where and when to network, and what you want to accomplish. Also be clear on what you need so that your network can help you with that.

6. Remember to Ask Questions

People love talking about themselves. Ask the right questions, and get them to talk about themselves and their business. If you listen well, there may be an opportunity for you which you will miss if you are intent on speaking about yourself and your business instead.

7. Don’t Sell your product or service

Be clear on why you are there: You are not there to sell but to make friends and build strong relationships. If you insist on selling, you will just annoy others and they will avoid you.

8. Follow-up

This is the most overlooked part of networking. You need to follow up with the people you meet and see them one on one. Keep the business cards in a business card holder and add them to your database. Then phone them within 48 hours to make an appointment.

If you have seen them before, keep in touch with a card, a note an email or a phone call. Make sure they don’t forget you.

If you follow all these steps you will have greater success at networking. You will form great relationships with people who will purchase your product or service when they have need for it. Networking is a long term goal, not a short term fix. And above all, be relaxed, have fun and enjoy yourself.

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Model of Business Negotiation in China

Business negotiation techniques differ all around the world, but no major arena is quite like China for western businesses. The more holistic approach to the deal that the Chinese business people use on a regular basis, is much more involved than the more technical approach that is preferred by most of the western business community. While negotiations in China still rely on the technical information, as the western business negotiations do, they also take into consideration Guanxi, renqing, and mianzi, which can slow the pace of the negotiations in comparison. By getting more involved and integrating the personal lives of the negotiators, there is a believe and development of a new layer of trust. The biggest variation in business negotiation in China as compared to North America or Europe, is that they view the signing of the contract as merely a component in negotiations, and not the conclusion. Realizing these differences and working to understand why and how the Chinese business people tend to negotiate, can help your business to be more success in the approach and process as a whole.

The increased complexity of negotiating in China can be navigated by taking an understanding for the reasons of each of these impeding factors for “efficient” negotiations, as the western business have become accustomed to. The political and legal framework that is present, and has been around for several decades, creates an environment of distrust and lays down the reason for getting to know someone on a personal level. Beyond the personal vetting and sense of reciprocity that Guanxi imposes on the relationship, the negotiations in China are unique because of the adaptations that had to be made during all of the political turmoil. The resulting model of business negotiation, is not specifically different, just that there are more steps to take to reach similar results. The Chinese businesses realize that they are in a unique position and want to ensure that their business is not negatively impacted by the deal. Negotiating within these rules will allow your firm to navigate the “preliminary” negotiations and get the contract signed, but then the real negotiations start.

Where negotiations in the west, and throughout most of the world, end with the signing of a contract, the Chinese business people see the signing of a contract as the beginning of further negotiations. While this may seem sneaky or manipulative to businesses that are not familiar with this environment, it is not done in malice and is done to improve the deal. Remembering this key piece of information, and planning to re-negotiate even after the deal is signed will give your organization the competitive advantage over your peers that do not keep this in mind.

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