Many successful entrepreneurs attribute connections they made early in their careers to the long-term success they’ve achieved. For instance, Warren Buffet credits professional investor and acclaimed author Benjamin Graham with providing a sound intellectual investment framework, citing him as one of the influential people in his life — second only to his father.
An entrepreneur’s network is important because it provides knowledge through shared experiences, a lifelong sounding board, a source of referrals to an extended network, and a source of inspiration.
Building a network, however, is not the same as networking — don’t confuse the two. Networking is short-term thinking. It’s who can I meet today, or at a particular event? Who can I help or who can help me? Conversely, building a network is long-term thinking and therefore should be done strategically. Before you begin, set some expectations/goals. You’ll need to have a clear idea of what you want to accomplish and the best types of connections for your business right now. Identifying these points ahead of time will help you target the right avenues to grow your network.
Where should you start to build your network? It depends on your goals.
Building an advisory board. After you’ve made a wish list for your advisory board (check out this online presentation from Business Insider on building the best advisory board for your company), identify several well connected people you know and invite them to have lunch or coffee. Chances are good they will either know who has the qualifications you’re seeking or can suggest someone else who might. Online connection tools, such as IdeaCrossing, where advisors can be invited to collaborate in a private Workspace and refer other potential contributors, can be extremely useful here.
The best set of advisors for your business will likely not be found in the same social or business circles, or even the same geography. Entrepreneurs may need to be open to working with people who do not come with personal referrals. While it might take a bit of effort to find them, what’s most important is the type of expertise that person can bring to the table. In fact, a number of entrepreneurs have had success using headhunters or directly contacting the experts they’ve read about in the news.
Raising capital. A broad network is especially important when you are looking to raise capital, as investors are not typically located in your backyard. Even so, more and more VCs have partners located throughout the country or who are responsible for the fly-over territories. Research the events that investors are attending, or check LinkedIn to see if any of your connections can facilitate an introduction. Though the investors you meet this way may not inevitably make an investment, an introduction provided by one VC to another is very powerful in opening doors.
Online resources can also be a great way to build your investor network. There are a number of places that investors go online, whether to get information or showcase their expertise. Joining the conversation on social media sites such as Facebook, Twitter, and Linked, can be a great way to introduce yourself without being intrusive. There's also Quora, which allows you to post questions and reply to a variety of discussions. You might be surprised to find that asking the right question in the right forum might introduce you to the right connection.
Growing your customer base. Here’s where building your network and networking are more closely related. To grow your customer base, you’ll probably be pounding the pavement, setting appoints and attending events armed with business cards and a well-honed pitch. However, before you look to the unknown, the best place to start networking is your own Rolodex. Hopefully you already have developed relationships with these contacts and have established some level of trust. If they are a potential customer, why not reach out and see if they are experiencing a pain that your business can solve ? If that turns out not to be the case, this contact still could be a valuable resource in providing industry insights and referring other potential clients.
Some of the most valuable connections you can make to grow your business may occur in your everyday life. Think about who might be sitting next to you on an airplane, cheering at your child’s sporting event, or participating in an activity you love. For instance, Steve Cody, co-founder of the PR firm Peppercorn, met two corporate lawyers and a CMO from a technology firm while scaling Mount Kilimanjaro. From the everyday to the extreme, these situations don't hold an agenda of expectation for “networking” and can produce the most honest conversations where trust can be built.
It's clear that networking is a skill that will help build your network, and there are a range of resources available. You can learn tips for overcoming shyness or how to make the right first impression, but very little is written about what should happen before you start networking, and in particular, what the best avenues are for long-term construction of your network.
Once you have determined your goals and selected the right networking opportunities, be ready to put your best foot forward and have clear expectations. Remember, networking is a means to develop your social capital. Whatever route you take to grow your network, don’t forget to follow though. Nothing sours a new (or existing) network connection quicker than someone who says they are going to do something and then drops the ball.
Tiffan Clark is the Vice President of IdeaCrossing, a free online community created by JumpStart, which connects entrepreneurs with the capital, mentors and technical resources necessary to grow their businesses. Tiffan has worked at several venture-backed startup technology companies and strategic marketing agencies in both Boston and Cleveland.