Networking can be extremely beneficial for startups’ success, as it provides potential connections who can help move your business forward while also boosting your visibility in the marketplace.
Why networking is beneficial
Networking is important to all businesses and individuals, and it’s especially crucial to the success of startups. Not only does networking provide the opportunity to create and expand your connections, but at the same time it boosts your business’s visibility to potential clients, investors and partners. These individuals — and groups — can provide feedback, market insights, guidance on how to further grow your business, valuable connections, and more.
Networking can also improve your communication and sales skills, which is particularly important for entrepreneurs, especially those who may be shy or less experienced in these areas. Networking also plays a pivotal role in finding mentorship and support. Startups can benefit from the guidance of experienced mentors who can provide valuable insights and advice based on their own experiences.
Additionally, networking can help you build your presence in the industry and begin to launch a positive reputation. As an entrepreneur, when you create a great impression of your business, you significantly impact opportunities that may come your way, including potentially profitable ones. The significance of a stellar reputation cannot be overstated.
Networking challenges
While it’s clear that networking can be extremely beneficial, it also can pose a number of challenges, not the least of which is finding both the time to attend events and the money to cover costs. And, of course, how do you even begin to find worthwhile networking opportunities? When you consider the possibility of entrepreneurs being introverted, difficulties can escalate.
Nonetheless, there are a number of steps you can take to overcome the challenges of networking — not only to increase your comfort level, but perhaps to even enjoy it!
- Finding appropriate events — Perhaps one of the biggest challenges for startups when it comes to networking is identifying worthwhile events. But honestly, once you start looking, you’re likely to find networking opportunities everywhere. You could start with LinkedIn, finding groups relevant to your business and your interests. Within those target groups, look for both in-person and online events. You could also search on areas of interest by way of other social media sites. You could search by industry or market niche, by your alma mater, by your geographic region — even by what stage your startup is in.
If you’re not finding what you’re looking for, consider reaching out to a particular group as a whole to gauge interest. It could be as simple as posting the question, “Are there other entrepreneurs here who are interested in exchanging ideas, sharing experiences, meeting to discuss X,Y,Z…etc., “ and then pulling the responders together.
- Financial costs — Money is often a big concern for startups, particularly since you may not have much cash flow, or even any income stream yet, depending on where you are in the startup phase. But there are two important things to keep in mind. The first is long-term vs short-term goals.
Attending a particular conference or summit, especially one that involves travel, can be expensive. And while ultimately you’re the one who has to reconcile the costs and justify the expense, it’s definitely important to consider any such networking event as an investment in your future. The potential leads, customers, partners, mentors, and valuable connections that can result from such an opportunity may well be worth the upfront costs.
That said, if finances are tight, you may want to explore digital opportunities rather than in-person events — at least, for those in-person events that would be a huge financial setback. Do keep in mind though that while participating in virtual affairs can be a more immediate and economic benefit, networking virtually is best regarded as a supplement to, rather than a substitute for, in-person networking.
- Time constraints — If you’re like most people with a startup venture, your time is likely very limited due to the demands of your business, let alone the demands of personal and family time. Depending upon what phase your startup is in, you may be a one-person show, which makes being out of pocket all the more challenging. But as with the considerations involved when assessing the financial costs, and because networking is key to success, it needs to be a priority. Think of it as a way to focus on your long-term goals.
While finding the happy medium between short-term needs and long-term goals might sometimes feel like a juggling act, you can take steps to create the balance. Maybe you attend the conference to network, but commit to spending a specific timeframe focused on your workload, returning emails, making calls, etc. If it means burning the candle at both ends, as long as it’s not routine, then it’s okay.
Creating networking goals
Before attending an event or pursuing networking opportunities, you’ll want to seriously consider what your goals are. What are you hoping to accomplish? Be realistic; aim high but at the same time, not so high that you might miss what’s at eye level, so to speak. Make a list of what your primary objectives are, which can help to keep you focused and ensure you’re making the most of your networking time. For instance, are you hoping to:
- Identify funding sources?
- Meet people interested in a partnership?
- Meet potential clients / customers?
- Find a mentor?
- Expand your marketspace through community involvement?
- Learn more about industry trends?
All of these goals are worthy endeavors, and keeping them front of mind will help you to manifest them.
Proven strategies for building successful networking skills
- Be prepared! Practice your “elevator pitch,” which should be no more than one-to-two minutes. In fact, practice several variations of differing lengths so that you can succinctly describe your business and its value proposition. Consider that when you meet people at networking events, you’ll likely have time for a quick sentence or two at most — and if someone is interested in hearing more, you can deliver the three-minute version.
- To that end, be sure to create and always have at hand business cards! This tactic is an absolute must, even in the days of digital everything. A tangible reminder of you and your business helps to ensure that you won’t be forgotten when life beyond the networking event tugs, as it always will. At the same time, if you’re interested in learning more about someone else’s business, ask for their card.
- Keep your goal in mind as you meet people. Be confident and curious.
- Remember that networking is reciprocal! It’s equally as important to listen as it is to speak, and to think about ways in which a connection can be mutually beneficial. Are there sources or connections you might be able to share, or advice you can give? In other words, what value can you or your business offer to others?
- Treat all interactions as a networking opportunity, which by no means is to suggest you take free reign on nonstop talking about your business. But rather, consider that the friend of a friend you end up chatting with at a gathering, or the parent of your child’s teammate, or even the bartender at your local eatery, all may very well have the perfect connection to share. Be open to making connections in seemingly unlikely places, as you never know when synchronicity will manifest itself, intertwining your life with unexpected connections and serendipitous events.
- Follow up! Equally as important as the time you spend making connections is the time you spend maintaining them — and, perhaps even more so, deepening them. Set up time in your calendar regularly to reach out to your connections, weekly, at the very least. While an email is a good place to start, if it’s a relationship you want to grow, then make the time to meet in person over coffee or a meal. Following up with your connections sends a clear message that they’re valued, and that is likely to be reciprocated.
No matter how you look at it, successful networking is a skill. And like all skills, it can be learned and improved over time. The more you practice the strategies detailed here, the more successful networking will become second nature.
How has networking helped your business? What do you enjoy most?
What is the most significant connection to come from your networking experience? What networking advice can you share with others?
Leave your comments below to kick off the conversation!
Lenovo Web Writer
Originally from New England, Deborah relocated to North Carolina nearly two decades ago and spends the bulk of her time writing about technology. When she’s not writing, her favorite thing is to comb the beach for treasures — any beach, any time. Preferably with her dogs.