Building Business Relationships and Networking

The basic concept in business networks is that members make referrals to each other from among their friends, clients, and associates. They may only customers or develop a circle of businesses with which they do business and exchange expertise. Ideally, networks serve both social and business functions and are mutually beneficial for their members. The relationships formed in networking help people create a larger world for themselves, with a variety of new relationships, opportunities, and resources. You can think of networking as investing in the future. The intention is to develop knowledge about each other and enough trust so that neither side feels taken advantage of. This is what networking is all about – everyone has something to give to each other. There are four main benefits of business networking:

• Referrals
• Leads
• Relationships
• Knowledge

Let us look at each. 

Referrals

Referring someone means directing them to another person or business who can help them. It can take many forms. The aim is for people who are familiar with a business or its reputation to actively refer their own contacts, family, and friends to this business. This results in the business gaining new clients or customers who are likely to be highly motivated to purchase products and services because they have received a recommendation from someone they know and trust.

There are three types of referrals.

Select each of the following headings to learn more about each referral type.

It is good networking practice and professional courtesy to thank the person or company who provided the referral and to keep them informed of the results of the new contact. In addition, it is important to never use someone as a referral without first securing their permission.

Leads

Networking can also generate leads. Leads are persons or other organisations who may be interested in doing business with you. Unlike people who were referred to you, leads are usually not expecting to be contacted. For example, a colleague may recommend that business contacts a person they know, but they will not inform that person about it. Reaching out to the lead is close to making a 'cold call' because they have not given their consent to be contacted. However, the potential for success is higher as the business already knows that the lead has some interest in or a need for their business or product/service.

Relationships

Networking allows for new relationships to be established. Relationships are key to business success; a positive relationship allows for building insights into the needs of a particular client and allows trust to be built between individuals. Networking allows this relationship to be built in a social environment where there is time for conversation and information sharing. Insight into customer needs and having a positive and trusting relationship also allows a business to have an opportunity to promote its products and services and resolve issues that customers may be having more easily and in a more relaxed environment.

Knowledge

Networking can give a company access to knowledge it previously did not have. Similar to referrals, if you need help, you can consult with associates who are more knowledgeable on the topic. You may also find that close relationships give you information about competitors.

All networking is premised on building relationships with contacts in different types of network to which you belong (or could belong). The network you select to use must support your organisation's business objectives. 

Organisational objectives

An organisation’s objectives are its goals, purpose, and mission. It includes its intentions for operating a business as well. Your organisation’s objectives should be clear, specific, and achievable, so you should be able to know what these are even without having to look them up. Even before you joined the organisation, the objectives should have already been communicated to you to give you an idea of what the organisation is trying to achieve.

Your organisation can have one overall business development goal, but the activities done to achieve the goal can vary from department to department. Understanding your organisation’s objectives is important because this will guide you in planning and implementing the proper activities. You can refer to the Ace Finance Corporate Marketing Plan to understand their current strategic plan and business objectives. 

Aligning organisational objectives to networking objectives

Networking objectives depend on business development objectives. Networking is usually a strategy to help achieve the overall goal of the organisation. But not always. Consider business development objectives. Do they require the involvement of people outside the organisation to be achieved? For example, if the objective is to create more products, the organisation needs suppliers they can purchase the materials from. In this case, networking with suppliers is necessary to achieve the objective. In the case of Ace Finance, networking is very clearly identified as a key strategy for attracting more clients, especially clients wanting a more holistic accounting service that includes training in financial literacy.

Aligning personal networking objectives to organisational objectives

Your personal objectives depend on your work role and your long-term career goals. Examples of personal objectives you can set for networking are:

• Increase your knowledge and learn skills
• Look for other job opportunities
• Get more clients through referrals.

Generally, your personal objectives for networking should be aligned with the organisation’s objectives. Ensure that there are no major conflicts between these so that your networking activities can satisfy both personal and organisational objectives. If networking is an important feature of your organisation, it will (like Ace Finance) have a networking policy and procedure which outlines expected behaviours.

Your position description will outline any networking responsibilities you have. These will vary depending on the role. For example, an IT support person will mostly network internally. On the other hand, a business development manager, product salesperson or research assistant will likely have to network externally. In fact, networking may be identified as a key performance indicator for your role. 

Read the following article from the Harvard Business Review that explores the impact of working remotely on professional and personal relationships. The research looked at the impact on an individual's career progress and the negative impact on organisations where less creativity and more 'groupthink' has resulted. 

Potential business networks

The three main business contacts you will need to maintain relationships with are suppliers, clients/customers, and colleagues. Contacts can be individuals within your organisation (for example, from another team), or found external to the organisation (for example, through other related organisations such as suppliers or even your clients). Contacts can also be found through other organisations that directly or indirectly promote and foster networking opportunities.

So, how do we define the difference between these types of potential networks? 

• Industry associations: According to the Australian Competition and Consumer Commission¹ association members play an important role as a collective voice for individual businesses within an industry. Their members will often share information, discuss issues, develop standards and establish rules for best practice within their industry. The Australian Finance Industry Association (AFIA) may be a useful industry association for Ace Finance. 
• Professional associations: Professional associations, on the other hand, are a body of persons engaged in the same profession. It usually formed to control entry into the profession, maintain standards, assist members through ongoing professional development, provide mechanisms for quality control and engage in research. The Certified Practising Accountants of Australia (CPAA) is an example of a professional association relevant to Ace Finance.
• The Australian Chamber of Commerce and Industry: The Australian Chamber of Commerce and Industry is a network of businesspeople designed to promote and protect the interests of its members who come from all sectors of the economy. Many regional centres will have a business chamber that may be affiliated with the Australian Chamber of Commerce and Industry. 
• Professional networking organisations: The number of organisations that exist to promote networking is increasing. They include LinkedIn which is the world's largest professional network, Opportunity which uses artificial intelligence and matching algorithms to connect you to people, and EventBrite which is an events hub where you can search for physical and online networking events. 

There are also often some specific networking organisations that cater to a specific demographic group. For example, a networking organisation may cater specifically to women in business. There are also networking groups that cater to minority groups or that cater to specific business sectors, such as small businesses or home-based businesses.

They can all be used for networking and building your contacts.  Which you decide to use will depend on your networking objectives (which should support your team or organisational objectives). Check your organisation's policies and procedures for recommended networking opportunities.

Identifying contacts for your network

A contact can be an individual internal or external to your organisation. Select the following headings to learn more about making a list of contacts (via a range of network types including individuals and organisations),  researching how to find them (including through industry-related organisations and professional networking sites) and tips for reaching out and/or becoming involved with a contact.

Seeking specialist advice in developing contacts

Networking can be difficult, particularly if you are new to the industry or new to business in general. It can be intimidating to go out there and build contacts. Your managers and supervisors are the best people to seek advice from. They have experience in networking and can guide you through the process.

You can also seek help from external sources, such as consultants. They can find the individuals that you need to develop your business and introduce you to them. If you decide to seek advice from a consultant, ask them specific questions and give details about the type of individuals you want to contact. You can also ask for help from your existing business contacts. Each contact you have can lead you to other new contacts. Ask if they can recommend any individuals or organisations that would be helpful to know and if they can introduce you to them.

The Ace Finance Networking Policy and Procedure indicates that staff should consult with their manager for advice on developing contacts.

If you need help developing your interpersonal skills for better networking, you can attend seminars and workshops that can teach you how to communicate more effectively. Your organisation may be able to provide you with training for this, so ask if there are any upcoming opportunities you can participate in.

Creating a simple networking strategy

Strategic networking is the ability to marshal information, support, and resources from one part of a network to achieve results in another.

As you have learned, networking is an important strategy and can help your organisation to generate new sales leads, learn about your market, and build and maintain business relationships. To be most effective, networking should be strategic. Why then do so many organisations approach networking in such an ad-hoc fashion? Your networking can be much more effective with a simple strategy. Check where appropriate with your manager and if your organisation like Ace Finance has a specific networking policy and procedure, make sure you comply with any requirements. 

Review the following simple model for creating a simple networking strategy.  Completing these steps allows you to develop a plan for networking.

Tips for building and maintaining networks

You may be responsible for planning, sequencing and implementing tasks to build and maintain networks. The following points will help you perform this responsibility effectively.

• Schedule time to contact your networks on a regular basis
• Schedule time to identify new formal and informal networks
• Ensure the networks you cultivate align to your organisation's objectives
• Identify the resources you need to build and maintain a network (for example, costs to attend a formal networking conference)
• Use a project plan to set realistic objectives, sequence activities, and include timelines and responsibilities
• Apply time management skills to ensure any networking event you organise runs to plan
• Select appropriate support of others and engage all stakeholders
• Seek feedback and update your networking activities where required.

Scenario

Ace Finance began in 2004 in Sydney, New South Wales. The business model has expanded to regional NSW. Its current client base includes large corporations and small-to-medium-sized organisations and sole traders in local hospitality and tourism, aged care, manufacturing and childcare. According to its Corporate Marketing Plan, it is keen to expand its client base to fruit and vegetable producers which have become key employers in Dubbo, Orange and Coffs Harbour. Using the steps we outlined above, let us see staff at Ace Finance might respond.

• Step 1: Identify why you want to network. Find new clients in the fruit and vegetable producers (growers) sectors in regional New South Wales.  
• Step 2: Identify how many contacts you need. Robert and his team split their efforts by taking one regional city each (Dubbo, Orange and Coffs Harbour). They agree to identify five current clients with connections to regional fruit and vegetable growers. They are achievable because they each have clients who transport produce to local markets and fruit and vegetable retailers.  
• Step 3: Identify the people with whom you need to network. The names and contact details are available through the Ace Finance client database. As a group you discuss which if any would be prepared to refer Ace Finance or to act as an introducer or connector.
• Step 4: Review your networking plan and implement it. You believe the reason to network is valid, and the people identified are appropriate. However, you have not identified local industry associations and the contact person for each sector. You also agree to each review one online professional

Use your research skills to identify any other sites you may find useful for networking. There may be sites that offer physical networking opportunities in your area. You will also find virtual networking opportunities. The following short scenario illustrates how Ace Finance has used networking with external sources effectively to assist their organisation.

Scenario

Ace Finance use their product suppliers and independent contractors as ways to identify contacts who can assist them achieve their objectives. They also view their clients as potential contacts and sources of useful information. 

• Product suppliers: Product suppliers who provide basic accounting supplies such as project management software, tax software, stationary and/or paper-free document management system, computers, telephones, stationery and internet services. Ace Finance service quality is directly affected by the quality of the supplier’s products and the speed at which the products are made and delivered.
• Independent contractors:  Independent contractors work on a contractual basis for the organisation. At busy times of the year, Ace Finance bring in additional accounting and administration staff. Because the contractors are responsible for paying their payroll taxes and benefits, they help reduce employment costs.
• Clients: Clients are the ones who purchase products and services from Ace Finance, therefore responsible for the revenue. They may also provide feedback that can help the organisation improve.

Ace Finance also try to stay abreast of networking opportunities through appropriate industry and professional associations. For example, CPA Australia site hosts local and virtual events and a wide range of online courses, learning manuals and workshops. Professional associations are an excellent source of networking opportunities, which we discuss in the following subtopic.

Apart from individuals, identifying organisations that foster networking opportunities is also a profitable pursuit to undertake. Some of these were identified previously. The role played by professional and industry associations in fostering networking opportunities that not only serve you, your organisation but build the industry as a whole. They should not be overlooked. Whilst many industry associations are national and often based in capital cities, some either have a 'chapter' in regional centres (such as a Chamber of Commerce) or partner with other organisations to co-sponsor a networking event. 

A good starting point for establishing a network is to become a member of professional networks catering to your field of expertise. These are accredited structured groups of organisations working together to expand their circles and increase awareness of news and trends in a specific industry. These networks cover a wide range of contacts, including:

Professional associations act as a peak body or umbrella organisation, for professionals working in the same or similar fields. These associations maintain standards within a profession, provide ongoing professional development to members, and represent the interests of their members to the government and community. These associations provide members with many services including access to network meetings, events, special interest groups, and informal social events. It is an excellent way to obtain specialist advice about a specific industry or profession, build business relationships and contacts.

Services will vary between associations, but they generally provide a forum for members to interact with and learn from each other. There are many professional associations depending on your area of study and the industry. Click on each of the following headings to identify the range of professional associations that would be of interest to an organisation such as Ace Finance.

Scenario

If you look at Ace Finance's Corporate Marketing Plan and read the 'Executive Summary', you will see that as part of its strategic plan, Ace Finance intends to increase its regional market share by attracting and retaining clients who want a more holistic finance and accounting service that includes training and professional development. Recent market research conducted by The Greater West Chamber of Commerce found that the number one finance and accounting thing keeping them up at night was their overall level of financial literacy and how to access useful information. Some networks that Ace Finance could join to meet training specialist obtain information about how to conduct financial literacy training programs include the:

• Greater West Chamber of Commerce
• Australian Institute of Training and Development
• Chartered Accountants Australia and New Zealand
• Taxation Institute of Australia.

Etiquette refers to the set of conventions or acceptable behaviours in a society or group.

In this section, we will explore etiquette related to networking, including:

• Engaging with networks and industry or professional associations
• Confirming communication channels to exchange information with contacts
• Engaging with contacts using written and verbal communication
• Cross-cultural etiquette.

We will discuss each of these briefly.

Engaging with networks and industry or professional associations

If your organisation is a member of professional networks, you can engage with other members by following these tips.

• Research target businesses. Research relevant organisations and individuals such as competitors and suppliers for networking. Think about what would benefit them and how you can provide it to them for a mutually beneficial agreement.
• Approach others. Take the initiative and be the one who makes the first contact with the organisations and individuals you have researched. This conveys your interest in establishing a professional relationship with them. Refer organisations. You can refer newly established organisations within the same industry to join your network to encourage growth. For example, Ace Finance can introduce new accountants to the network.

If your organisation is a member of an association, you can engage with it using the following techniques:

• Maintain a newsletter: Having a newsletter containing updates and trends in the industry keeps all members updated and allows your organisation to be seen as a credible source of information.
• Offer opportunities for professional development: If possible, you may also offer opportunities for further education and improvement to other members, such as seminars or webinars. This displays your organisation’s expertise in the industry.
• Personalise marketing tactics: Instead of relying on mass marketing activities, personalise your messages. Generic messages sent to large groups of people may be ignored, while small things like using a member’s name in an email can help them feel a connection to your organisation.

Confirming communication channels for exchanging information

Treat a networking event as a first opportunity to get in touch with people. You must think of ways you can build on this initial contact. This may mean finding ways to spend time with the new contacts away from professional outings. Professional relationships are built from talking with one another, finding areas of interest that you have in common, or areas of your business that can complement your contacts’ business. Some useful tips:

• If your new contact seems like they can help your organisation and you can help theirs, you can mention the common goals that your organisations share and ask for their contact details or business card.
• You can ask them what their preferred method of being contacted is.
• If you have a clear idea of what your schedule looks like, you can already set a time to call or meet with them. If not, you can ask them which days and times they are most responsive so you can plan when to contact them.

Usually, contacting business relations through phone call or email is permitted by organisational policies and procedures. You need to check these policies more closely, however, if you want to establish a more casual line of communication with your business contact through different means, such as social networking sites.

When you follow up on your initial contact using the communication channels you agreed on, remember to re-introduce yourself. This means stating your name, your organisation and job title, and the event at which you first talked to them. You can also give a summary of what you talked about with them at the event to help jog their memory. Once these second introductions are over, you can proceed to explain why you contacted them, in line with your organisation’s objectives.

Engaging with contacts using written and verbal communication

Business networking is most effective when you focus your efforts. When you network with a potential new contact, keep the following in mind:

• Be concise: A single opportunity with someone should concentrate on detailing a specific area of your business. You do not want to overwhelm those individuals that you are speaking to with too much detail. Networking is about getting information out there, not making a sale. Speak precisely and provide as much detail as you can, but stay on topic.
• Know who you should meet: You can identify the individuals you should try to meet by thinking about the following:
• Business card etiquette: A business card is a very important networking tool. Ensure that the details on these cards are updated and that they look presentable, which means there should be no creases on them². When you receive someone else’s business card, do not write on it or bend it, as this is considered impolite.  Cultural differences in business card etiquette can exist, so if you are unsure of how to handle cards, follow the other person’s lead. If they give their card using both hands, receive it with both hands as well. When a business card is handed out can also be subject to cultural differences. In some cultures, it is given during introductions, while in others, it is given after the conversation ends.

Using verbal communication

When you attend a networking event or join a networking association, you should be prepared to speak to many people in a short period of time. The way you make the first contact with someone can leave a lasting impression, so you need to make your introduction strong and positive. The following table provides some simple tips when having conversations with potential contacts.

Using written communication

The following table provides some simple tips when communicating using written means.  

If you are making initial contact using written means, rules and proper etiquette still apply. Emails and messages through social networking sites are the most common methods to reach someone with whom you want to establish a business relationship. Emails tend to be more formal, while messages can be more casual, depending on who you are trying to contact.

Cross-cultural etiquette

Most of us work or will work in multicultural environments or collaborate with clients, customers, partners from different cultural backgrounds. One way to appreciate some of the differences including communication styles and how to develop rapport is to understand the concept of high-context and low-context culture, which was developed by anthropologist Edward T. Hall in 1976.

Whilst it is important not to stereotype, the following image suggests that countries may sit on a continuum of low to high context.

General rules (a summary)

Regardless of the methods used for engaging or communicating within a business network, there are some general rules that apply:

Business Card Etiquette

Business cards are an important networking tool. It gets your contact details into the wallets and hands of those with whom you wish to do business. Before attending an event ensure you have a good supply and that they look professional with accurate up-to-date details. Be aware that in some cultures there are specific rules regarding how and when a business card is provided. Always ensure you research your target audience and observe normal social etiquette.

Policies and procedures provide employees with a clear understanding of what is expected of them.

Let's start by describing the differences between a policy and a procedure.

• Policies: Policies set some parameters for decision-making but leave room for flexibility. They explain the 'why' behind an action.
• Procedures: Procedures explain the 'how' behind an action. They usually provide step-by-step instructions for specific tasks and may include a checklist or process flowchart as a visual prompt. 

Networking policy and procedure

Organisational policies and procedures outline the protocols you should follow when contacting a person or another organisation. Before participating in any events or contacting specific individuals, refer to the relevant policies and procedures your organisation has to check if you have permission to do so. Some policies may also establish a specific process that you must follow when contacting people outside the organisation.

If your organisation has a policy specifically for networking, examples of what it may include are:

• the types of events that can be attended
• confidential information and trade secrets which must not be shared
• who can be contacted and for what purpose
• general guidelines for how you must conduct yourself.

Related policies and procedures and legislation

Most policies and procedures include a list of relevant policies and procedures, Acts, and legislation at the end of a policy and procedure. Why is this? The purpose of the legislation is to set out the law in Australia. By creating workplace-specific policies and procedures, an organisation can help to fulfil their obligations and responsibilities as an employer under certain legislation such as work health and safety and discrimination legislation. Laws can also be used to enforce the actions stipulated in a policy³.

The following table lists policies and procedures and legislation related to networking.

Networking and social media Policy and procedure

Social media is a common communication channel used in networking and uses online platforms such as LinkedIn, Facebook or Twitter to build networks or social relationships with other people who share similar personal or career interests, activities, backgrounds or real-life connections. Not being savvy with social media may represent lost networking opportunities and a barrier to increasing your contacts.

Many organisations have a policy and procedure that outlines how social networking should be used by employees. For example, the National Library of Australia’s social media policy is provided to staff. The purpose of the policy is to examine those areas where an employee’s personal use of social media may intersect with their professional life and provide information and direction on managing any risks that may arise. Read through the policy and note how many social media tools are available to employees today. You may be surprised!

Organisational policies and procedures such as these will help you determine (in consultation with your manager) networking opportunities to establish business relationships and contribute to the organisation's objectives. Be mindful of any such documents before attending any networking events. There may be serious ramifications for inappropriate behaviour, communications, or comments. In particular, companies often have strict guidelines in place covering interactions on social media.

For small business owners who are mainly responsible for their own business relationship networking it is advisable to construct a basic code of conduct, even if it is only yourself who it applies to.

Scenario

Ace Finance has identified networking as a key strategy for establishing and maintaining business relationships. It is also identified as a key element in their current Corporate Marketing Plan to help achieve its objective to increase members from key agricultural sectors in regional areas. Robert, the owner of Ace Finance is committed to networking and wants to see more staff engage in networking (whether virtual or physical).

When new staff are appointed they review two policies and procedures related to networking: the Networking Policy and Procedure and the Technology, Collaboration and Communication Policy and Procedure.

The Technology, Collaboration and Communication Policy and Procedure includes the following directives related to communication:

• Be respectful when engaging in conversations on behalf of Ace Finance:
• Do not make declarations or promises that you cannot keep.
• Avoid speaking on matters, making statements, or answering questions that fall outside your field of expertise or under another employee's responsibility.
• Do not disclose confidential or personal information without written approval.

Read through the Ace Finance Networking Policy and Procedure and familiarise yourself with the contents. Look at the section titled 'Seeking specialist advice' Can you identify at least two appropriate networking opportunities? 

To identify barriers, look at data including sales figures, client feedback or customer satisfaction scores and check how the competitors are doing compared to your organisation. If competitors are struggling to achieve their business objectives, too, then the barrier may be based on the market, not the organisation’s strategy.

Barriers to business development opportunities

Speaking with the people involved is also important to identify barriers. Talk to people within the organisation, such as management and employees. Managers can point out any issues in the big picture, while employees can spot problems in the day-to-day operations.  The barriers to business development opportunities can be either internal or external. Internal barriers are factors within the organisation. These can sometimes be connected to external barriers as well.

Internal barriers

Some types of internal barriers are:

• Poor management: Managers who lack leadership skills do not effectively motivate employees. This can lead to employees lacking direction or having a vague understanding of the organisation’s objectives.
• Lack of resources: The organisation may not have enough financial resources to market products and services effectively or expand the business. They may also not have the facilities and equipment that the employees need.
• Lack of strategy: Managers may be too busy thinking about the day-to-day operations instead of looking at the big picture. They might forget to plan for long-term growth and fail to prevent problems. The objectives and targets set might also not be reasonable or realistic enough.
• Low productivity: Employees do not feel motivated to be efficient during work. They may also lack the necessary knowledge, skills, and resources to work properly. The established systems, procedures, and processes may also be inefficient and counterproductive.
• Ineffective marketing: The organisation’s marketing strategy might not be working. Marketing efforts may not be reaching the intended audience or are not compelling enough to convince them. Meanwhile, external barriers are factors that limit your business but are outside the scope of your organisation.

External barriers 

• Saturated market: There may already be too many competitors offering the same products and services in the market. This prevents you from gaining new customers and is especially difficult to overcome if your organisation is newly established.
• Negative press: News outlets and social media may be harming your organisation or the industry the organisation is part of. Negative press will make customers wary of your organisation and hesitant to buy your products or services.
• High taxes: The organisation may struggle to pay taxes and contributions if revenue from sales is not enough.
• Aggressive competitors: Competitors may be expanding their business or increasing their marketing efforts in order to drive more customers towards them.
• Struggling economy: Recessions can slow down the business’s growth. Investors may become uncertain, and customers may lack the resources to buy your organisation’s products and services.

Business relationship barriers may result from poor communication, interpersonal, or intercultural skills. Barriers may also occur through parties having different values and belief systems. 

Addressing barriers

You can deal with internal barriers without drastic measures because they often have to do with the strength and effectiveness of business relationships. The following table provides strategies that focus on the people aspects relevant to your organisation.

Scenario

Robert has recently learned that a client has discontinued their services with Ace Finance in late July, citing disappointment with the customer service provided by the company. The client did not identify a specific person but implied that the three-week delay in having his tax return completed was unsatisfactory. Robert wants to understand what occurred and calls a staff team meeting. The meeting was productive and it turned out that in August the accounting team was down two members which resulted in lengthy delays in processing returns. Whist Robert is disappointed he is relieved it is not an employee issue but rather a lack of staff planning from the office manager. This is something the company can manage and the office manager has trained up a team member to assist with scheduling staff over the busy times of the financial year.

Once you have established and further developed your professional relationships, you need to present your organisation’s interests and objectives to business contacts. This involves participating in formal and informal networks, participating in promotional activities to entice customers and giving presentations to inform colleagues and peers outside the organisation. Doing these relies on you understanding your business contacts and being able to communicate effectively. 

Participating in formal and informal networks

There are two types of networks in which you will participate.

• Formal networks: Formal networks are easily identifiable, because they have an organisational culture attached to them⁴. Examples of formal networks are associations, professional conferences, and management groups. These usually rely on a hierarchy, where the leaders of the network manage how information reaches the other members. Formal networks also include groups of contacts who are meeting (physically or virtually) on a regular basis to discuss a specific topic of mutual interest. For example, how to support or promote their businesses. As the network group develops it may become more formal and meetings may include an agenda and minutes. Formal roles may evolve out of this type of networking activity.
• Informal networks: Meanwhile, informal networks have no hierarchies and are structured around the social ties the members have with each other⁵. You can meet contacts through any means, even at places outside of professional events, for example social gatherings. This type of network is characterised by its give-and-take nature. Regardless of their seniority, every member can share information freely.

Prepare in advance

Before any networking event, remember to prepare and plan your message according to organisational objectives and policies, the people you want to contact at the event and what materials you need (business cards, brochures, etc.) Regardless of the type of networking event you go to, opportunities to connect with potential contacts are often fleeting. This means you need to be prepared to get your point across as quickly as possible. This means:

• Summarising your key points: You can evaluate how effective your message is by considering whether you have answered the following: who, what, when, where, and why. If you are preparing for the networking event and some of the information is not related to answering these questions, it can safely be left out.
• Speaking in short sentences: Pick your words carefully, and make sure everything you say has an actual impact on the listener.
• Divide your message into categories: Try to assume that you will get five minutes with each person you contact at the event. You can divide your message into the following: 30 seconds to introduce yourself and your organisation 30 seconds to try to gain common ground One minute to discuss your organisation and its goals Two minutes to discuss your key points One minute to make a call to action.

do your homework on potential contacts

One of the most critical things you need to know is who will be at a networking event. Research who has been invited, what organisations they belong to, their current clients and suppliers, and whether they have any vested interest in what you can offer them. 

If you know certain people are attending from a given organisation that you want to meet, take the initiative to know their organisation well. Look at current news related to their organisation, issues they are known to be having, what their overall plans are.

You can find this information usually through their website or news articles related to the industry. When you have planned your message and have an idea of who will be attending the event, consider what your other objectives are. What else do you want to achieve at the event? Consider the following questions: Do you want them to just get information about your organisation? Do you want to make a sale? Do you want them to refer you to their contacts? Do you want to be offered positions at their organisations?

Promoting to customers

Ineffective marketing and low customer loyalty can be barriers to your organisation’s objectives. Promotional activities can help you reach your target customers and entice them to buy your products or services. Promotional activities include:

• Advertising: This activity helps you reach a larger audience by advertising your products or services. The medium depends on the customers you want to attract. Social media is a cost-effective method and allows you to connect with potential customers without trying to sell them something obviously. 
• Direct marketing: This activity involves sending mail, emails, text messages, pamphlets, and brochures to customers. This allows you to build a relationship directly with customers. Since this may be unsolicited contact, note any privacy regulations that apply. To receive feedback on your direct marketing activities, you can attach surveys to the mail you send. 
• Personal selling: This activity involves directly communicating with one customer at a time to build a relationship. This is an expensive and time-consuming activity, but it can create more meaningful connections and bring in loyal customers. Since this activity relies on direct communication, you can ask for feedback directly from the customer.
• Public relations: This activity involves press releases, press conferences, media interviews, sponsorships, and word-of-mouth referrals. It can lend credibility, as customers receive this information from third parties such as media outlets. For guidelines on conducting public relations activities, you can refer to the Public Relations Institute of Australia’s code of ethics.
• Sales promotions: This activity helps increase revenue for short periods of time. Sales promotions include coupons, discounts, contests, free samples, and trials. You can receive feedback from customers by asking them to answer online and written surveys about the products and services.

Scenario

Ace Finance has recently sponsored 'Simba' a Rhodesian Ridgeback 'Story Dog'. Story Dogs is a national literacy program based in Murwillumbah and formed by Leah Sheldon and Janine Sigley in 2009.  Story Dogs is built around the appealing idea of children and young adolescents reading to dogs. As part of the partnership, Ace Finance participated in a fundraising event where they auctioned off a one-year membership to Ace Finance's financial literacy program. To Robert's surprise, the item was the most popular of the night. In addition, he was approached by five individuals wanting more information about Ace Finance. Robert was satisfied, both for the charity he sponsors and the networking that resulted in potential clients. 

Presenting to business contacts

Presenting your organisation’s interests to other types of contacts can be done through formal and informal presentations. Whether you are giving a formal presentation to a group of contacts or giving an informal sales pitch at a networking event, you need to communicate effectively to align your organisation’s goals with those of your contacts. Before giving a presentation, you need to plan and prepare for it. This means:

• identifying your objectives 
• identifying the audience and context 
• writing the script
• preparing any visual aids
• practising.

Conversing at an informal networking event may not seem daunting. However, formal presentations can be a different matter altogether! When you deliver your presentation, keep the following in mind: control your pace and tone of voice, use appropriate body language and set a time to answer questions. It helps to have a set of anticipated questions and prepared responses. If you do not know how to answer a question, just be honest and ask if you can follow up. Take note of their name and contact details so you can answer their question at a later time.

Nerves can be a very real barrier to a presentation. Toastmasters International is a nonprofit educational organisation that operates clubs worldwide for the purpose of promoting communication, public speaking and leadership. Watch the following presentation on how to manage fear. 

Meetings

Even if you start with an informal network, you may find that over time you decide that you need to become a little more formal. This may mean sending out an agenda before the meeting and after the meeting distributing the minutes which record the main discussion points, new business, action items, and timeframes. For example, a small group of business owners, perhaps in similar but not competing products or services decide to get together to discuss ways of supporting and promoting the businesses to raise their profile or extend their range of products and services. They decide to hold a fundraiser for a local charity which requires consultation and coordination and a more formal approach to successfully organise the event. There are many templates for meeting agendas and minutes but they are often formatted in a table and contain the following information.

Agenda

Minutes

Everything you do in your business requires you to receive feedback to understand how well you did. You can try to accomplish something, but unless you know whether you achieved it or not, you will not be able to tell how successful you actually were. Evaluating your networking activities requires you to seek and receive feedback. Feedback will help you improve both your networking and presentation skills. You can ask for feedback from your business contacts:

• Suppliers: You can provide surveys to evaluate the business as a client.
• Customers: You can provide a way for them to leave online and written reviews about the business’s products and services.
• Colleagues: You can ask for feedback verbally during formal feedback sessions or informal discussions.

Once you have informed the relevant personnel about issues with your professional relationships, ask for their suggestions on areas you can improve on. Consider your message and the manner in which you delivered it. Think if you were able to meet the needs of your organisation and your potential business contacts. One of the things you need to seek feedback for is how you communicated your message during networking events. Feedback will tell you whether:

Management feedback

One way to improve your business relationships is to seek feedback from your managers and colleagues on the quality of relationships you have with your business contacts (for example, clients, customers, networks and so on). Your manager may suggest you create a short survey using a tool such as Survey Monkey and send it to your key clients, customers (this may include those inside your organisation to who you offer or receive a service, for example) seeking their feedback.  

responding to management feedback

Equally, it is important that you take on board feedback and respond in a professional manner. Be open to any opportunity to improve your skills. For example, your manager may suggest that you attend training or professional development in public speaking if feedback suggests that you lack confidence speaking in larger groups.

Always treat feedback as positive and constructive. Ensure that you do not get defensive when you are receiving feedback. Feedback is not about destroying your efforts. Rather, it is aimed at reinforcing what you do well and making you aware of any areas of improvement. 

Once you have received feedback, consider how you can apply the suggestions to your professional relationships. Improvement is a continuous process, so implement the techniques you learned when interacting with current and potential contacts and ask for feedback from your supervisors and colleagues whenever you need to. 

Key points

• The basic concept in business networks is that members make referrals to each other from among their friends, clients and associates.
• Networking strategies must support the organisation's objectives.
• Potential business networks include industry associations, professional associations, chambers of commerce and other networking organisations.
• Networking can be physical or virtual using social media platforms.
• Networking etiquette includes how you engage with networks, confirming communication channels, using appropriate written and verbal communication and cross-cultural awareness.
• Organisational policies and procedures will outline the protocols you should follow when contacting a person or another organisation.
• Barriers to business development can be internal or external.
• Advertising, direct marketing, personal selling, public relations and sales promotions are types of promotional activities to attract customers.
• Seeking feedback from managers, colleagues, clients, suppliers and others can help you improve your networking skills.

The final activity for this topic is a set of questions that will help you prepare for your formal assessment.