The Art of Networking

I’d like to touch on something that is fundamental in business today but the nuisances of which seem to still be a mystery to many of us, networking. There are several misconceptions about what that means, how it works and why we do it. There are also persistent non-productive attitudes toward the idea that I see all the time and would love to change, but it all starts understanding what networking really is and what it is not.

If I were to write my own dictionary like definition it would look something like this: “Networking is the process by which we connect with other people who have common interests or goals for the purpose of sharing contacts, information, services and support.” In a very broad sense that sums it up fairly well and could be applied to almost any type of interpersonal networking or reason for networking. However, when we think of why we network it helps to go beyond applying this to strictly business goals (sales for example) even when the purpose is business.

Personal reasons beyond the business motivation for networking might include making new friends, philanthropy and getting involved with your community. Ultimately, that leads me to what networking really is, Building Relationships, nothing more, nothing less. Those relationships may be as deep or as narrow as appropriate but it is still important to focus on the person, not just the business need you have of them else you come off as just another slick used car salesman that no one want’s to do business with. The catch, if you can call it that, is that building relationships takes time. It may not result in immediate business or quick sales but will help you to accomplish your long term goals in a sustainable way. And when short term results are important, those people you have built a relationship with will likely be able to help you out, either on their own or by referring you to their contacts (whom they have built relationships with). And there is almost no easier means to and end than through a personal referral from someone who has a vested relationship with you.

The key advantage to approaching networking in this way falls right back to psychology 101 (and to think, I never really thought that degree would come in all that handy!). Relationships are infinitely more important to accomplishing your business goals than your price or merit, because the fact of the matter is people are exceedingly more likely to do business with someone they know, trust and have a track record with than they are a stranger. Whether networking in the business world or internally within your own company, if people like you, trust you and have faith in you, you have a chance. But remember, it takes time!

Networking is not handing out business cards a random meetings and asking people what they “do” as though you are instantly trying to assess whether or not they are of value to you then moving on. These are the people who regularly show up to meetings of the organizations that I am involved with in Dallas who quickly come and go and have accomplished little more than wasting their time and money. Networking is not “knowing” (I use the term loosely) as many people as possible either. The more the merrier as long as those relationships are of some quality and you know something about the person, not just what their job is.

A few tips for good networking (I’ve highlighted a few that stand out to me):

1. Don’t be inappropriate but don’t be afraid to get a little personal when you meet someone new. Remember, you are getting to know them, but keep it at a pretty high level.
2. Pay attention to what people say and they’ll give you a lot of information without even trying.
3. Always show interest by asking questions. If the conversation dies, keep asking, even if they are not.
4. Check your ego at the door every time you walk into a meeting. You’ll be more approachable and more interested in them, not just your own motivation.
5. Get their e-mail or phone number (or get it all on a card) and even if you have nothing to say follow up the next day and let them know you enjoyed meeting them. If you can invite them to another event or something they might be interested in all the better, you are building rapport. Hell, just suggest you go have beers sometime soon to chat about… whatever.
6. If you don’t hear right back after trying to reach someone don’t be afraid to follow-up again in a couple of days (try a different medium). If you still don’t hear back, that’s ok. You won’t connect with everyone every time.
7. Get off your couch, go do stuff and invite people along, but pay attention to the things they might be interested in. If you know they hate baseball, think about inviting someone else to a baseball game.
8. Never forget what it is like to be the new person. I can’t stress this enough. Go to a new group by yourself if you need a reminder of how uncomfortable it can be. If you have been around a while, make haste to introduce yourself to the new person. You will usually be greeted warmly and it will be easy to get to know them. We all want to talk to someone!
9. Networking is as much about them (if not more so) than it is about you. Don’t just ask for stuff, have something to offer.
10. When you meet someone for the first time talk about whatever you can think of (use good judgment though). The point is to get the conversation going.
11. Always make eye contact, just don’t be creepy and stare.
12. Don’t forget to shake hands, it’s a formal way of making physical contact and that puts people at ease, it also show respect while keeping you on the same level.
13. Smile! I look like a dork when I smile but I still do it because it also puts people at ease.
14. Practice the art of getting to know people and the benefits to your business will work them self out!
15. Don’t be afraid to ask for help (hint: even if you don’t need it) from someone new or who is a recent acquaintance. People love to feel “smart” and that you are already interested in and trust their insights and opinions.
16. Never stop!

Remember: Networking = Relationship Building (and it takes time!)

Got more tips on Networking? I’d love to hear them, leave us comments…..

Update August 22, 2008: Here is a related article I recently found: http://caseysoftware.com/blog/the-art-of-the-introduction

Killing the Killer: Complacency

I read a great story this morning that is somewhat true while inaccurate in it’s factual details. But for the purposes of this discussion the accuracy of the details isn’t what’s important (visit Snopes if you want to know more). Even as a fictional story it does an excellent job of illustrating how complacency can creep in and that we should continually question the “why” and the “way” we do things. If our end goal is to create a business that is efficient and repeatable so as to be low maintenance or easily expanded then complacency can become a killer particularly at the Established Stage of building a business.

And it’s not just businesses that suffer. The United States, despite it’s many obstacles has become the dominant force in the world though determination and innovation where nations that were once huge empires have fallen largely because of complacency, an issue that is quickly becoming a seriously problem here.

Even the best processes from time to time need to be re-evaluated for effectiveness and improvement. Take for example process geniuses McDonald’s. While they essentially do the same thing they always have, make burgers and fries, do you think the process for doing so looks exactly the same as they did in 1940? Of course not! It’s still an assembly line from cow to cardboard carton but a lot of things to bring you a burger have evolved in technology, transportation, testing and so on.

But back to our story, keep in mind this is narrative not perfectly factual but illustrates how easy complacency can creep in and have unexpected effects. In the business development framework reaching a point of sustainability and maturity is driven by continual improvement which leads us to our goal of automation (i.e. low maintenance, well controlled, measurable, manageable and profitable).

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Does the statement, “We’ve always done it that way ring any bells?

The US standard railroad gauge (distance between the rails) is 4 feet, 8.5 inches. That’s an exceedingly odd number.

Why was that gauge used?
Because that’s the way they built them in England, and English expatriates built the US Railroads.

Why did the English build them like that?

Because the first rail lines were built by the same people who built the pre-railroad tramways, and that’s the gauge they used.

Why did “they” use that gauge then?

Be cause, the people who built the tramways used the same jigs and tools that they used for building wagons, which used that wheel spacing.

Okay! Why did the wagons have that particular odd wheel spacing?

Well, if they tried to use any other spacing, the wagon wheels would break on some of the old, long distance roads in England, because that’s the spacing of the wheel ruts.

So who built those old rutted roads?

Imperial Rome built the first long distance roads in Europe (and England) for their legions. The roads have been used ever since.

And the ruts in the roads?

Roman war chariots formed the initial ruts, which everyone else had to match for fear of destroying their wagon wheels. Since the chariots were made for Imperial Rome, they were all alike in the matter of wheel spacing. The United States standard railroad gauge of 4 feet, 8.5 inches is d erived from the original specifications for an Imperial Roman war chariot. And bureaucracies live forever. So the next time you are handed a specification and wonder what horse’s a** came up with it, you may be exactly right, because the Imperial Roman army chariots were made just wide enough to accommodate the back ends of two war horses.

Now the twist to the story

When you see a Space Shuttle sitting on its launch pad, there are two big booster rockets attached to the sides of the main fuel tank. These are solid rocket boosters, or SRBs. The SRBs are made by Thiokol at their factory at Utah. The engineers who designed the SRBs would have preferred to make th em a bit fatter, but the SRBs had to be shipped by train from the factory to the launch site. The railroad line from the factory happens to run through a tunnel in the mountains. The SRBs had to fit through that tunnel. The tunnel is slightly wider than the railroad track, and the railroad track, as you now know, is about as wide as two horses’ behinds.

So, a major Space Shuttle design feature of what is arguably the world’s most advanced transportation system was determined over two thousand years ago by the width of a horse’s rear. and you thought being a HORSE’S A** wasn’t important!

Where Do Ideas Come From?

It’s time to roll up our sleeves and get started! We’ve imagined life beyond the cubicle, read the books and thought about what we will do with all that free time! But there is just one problem… what are we going to do? Coming up with ideas is challenging for some and easy for others. The good thing is, anyone can find their way into the latter category. The biggest hurdle is often forgetting what we know and opening our minds up a bit. I fall into the latter category, so much so that I have new business ideas on an almost daily basis but don’t have nearly enough time to chase them all. Of course, not all ideas are good ones (in business terms) but once you start generating ideas it can be hard to turn it off.

So how do we get started? How do we come up with good ideas? I liked Timothy Ferris’ idea of “finding your muse” because we don’t want to start just any business. We want to be inspired and do something we will enjoy, something that will make us want to get out of bed in the morning, not just “whatever makes money.” In 4 Hour Work Week, Tim suggests a few places to look for inspiration, I’m including some of my personal examples for illustration:

1) Professional experience. This one is often the most obvious but our ideas can also seem the most daunting. Who out there has never had a job where they didn’t see something within their own company that couldn’t be improved upon? Not every idea will turn into a full fledged business but many will. (Examples: web development, IT Consulting, risk management, product management).

2) Groups or organizations you are involved with. What are their challenges? (Examples: DJCC, Sedona Conference, DFWRein, Vivaldi Patrons Circle).

3) Hobbies. This one is the most obvious, especially for all of the inventors out there (Examples: photography, SCUBA diving, hiking, graphic design, travel, wood working, cars, …)

4) Other interests. (i.e. things you are interested in but don’t‘ really constitute a hobby). (Examples: mountaineering, camping, wine, movies, …).

I would also add to that list to look at the challenges you face in your day to day personal life. Odds are there are others facing that challenge too who would benefit from your idea. How many child care “inventions” have been created by a parent who found a way to ease their routine and turned that idea to profit and added relief for a lot of other parents! However, don’t start inventing for child care if you have never had kids. Stick to what you know and your odds of success will be much greater.

All of these things can generate ideas and give you places to look for inspiration. Remember that often the best ideas come from finding a need or a problem that requires a solution. It’s far more rare to develop a solution (tool, product, whatever) that then successfully goes on to find a problem.

Another point to keep in mind is that ideas for a business can be in the form of products, services, intellectual property (IP) or a combination of all three. The point is that sometimes the solution to a problem, and hence the business idea, may be a tool (product) but may also be a process or a “way” of getting something done that improves efficiency, teaches, reduces cost, …

If you get creative and stop thinking of the world in terms of just hard products, a universe of ideas will open up to you. Then it’s on to figuring out how to make it all work, if it even will, but the point of this exercise is to just come up with ideas!

One final thought, don’t be afraid of competition or worry too much about originality. You want to differentiate yourself (particularly within a niche) but some of the greatest success stories in business have been from companies or individuals that improved upon something that already existed. Case in point, Microsoft’s first operating system (DOS later renamed MS-DOS) wasn’t invented by Microsoft, and we all know where that led.

Quick Update: Blogger Pamela Slim at “Escape From Cubicle Nation” posted a great entry on “Five Easy Ways to Discovery What You are Meant to Do With Your Life.” It’s an older entry but suggests some great outlets for answering that question that could also produce some great business ideas. Check it out.

Tools of the Trade

I have to admit that I’m not a huge fan of business books. I have read plenty of them but find that all too often they fail in on one of two areas:

1) All theory and what you “should” do but no practical application, or
2) Great tactical steps and “how to’s” but no way of helping you understand how those things translate to the nuances of your business or idea.

Have you ever read a great business book, finished it feeling motivated and excited about the future only to realize that understanding how to apply all that stuff was as cloudy as ever? That is because one of the greatest challenges for anyone writing on business is helping readers understand how to apply what they are learning, a task so daunting that I think most books don’t really try as doing so becomes less a business lesson and more of a lesson in creative thinking. It’s not that the books don’t contain great content and ingenious thinking, often they do, but they just don’t cross the bridge to practical application. The best tools, explanations and teachers take complex ideas and make them look simple, even when they are not and in doing so make it easier for the reader or student to apply it to their own unique situation.

One of the my goals for vsellis.com is to pick up where some of those great ideas leave off and help you figure out how to apply what you have learned. Of course every business is different but how we think about those ideas and learn to apply them is pretty universal. To achieve that I’ll be developing and publishing various types of IP (intellectual property in the form of applications, whitepapers, tools, …) to help cross the bridge from theory to application. The catch is to change the way we think about and learn the translation process, not to necessarily to do the translation for you, though the best road to that end will be through examples and explanation. Along the way we’ll address problems and solutions and help you move from sitting on your couch reading a book to running your business.

But before we begin, allow me to set your expectations; you still have to do the work. I’m simply going to help you develop the idea, then move past the idea and excitement to actually working on your business, and in the process, more quickly get over the inevitable bumps in the road.

I’ll add to this discussion that I won’t recommend any books, blogs, papers or tools that I haven’t read or used myself and that I wouldn’t be willing to pay for myself. Also, I don’t judge any of those things based on popularity or lack thereof, but rather on the content and the value it brings to what we are trying to accomplish.

Focus on the Future

One of the central issues that plagues many of us when starting or running a business is focus. It’s easy to be distracted by new ideas, other things we “need” to do, our rationalized distractions or other obligations. When I decided to redo my site and focus on small business and helping others with theirs, the first thing I asked myself was whether or not I was doing this as a distraction or an excuse for not doing actual work on any of a number of start-ups I have in progress. For once, I can say that I wasn’t, and in fact I learned a quick lesson that I want to make the first I share with you.

There will always be distractions and they will dominate us if we let them become our excuses for not doing what we really want. Why do we do that? Because the reality is, that no matter how much you love whatever business you are running or starting or working in, it won’t always be fun, and it is in those moments that we are most tempted by outside distractions. I quickly figured out that there are some things I really enjoy doing (blogging is one of them) and am not going to stop, yet I knew I couldn’t allow them to continually be a distraction from working on my businesses. The answer that came to me, like most great answers, was deceptively simple. Use that interest or hobby to help you focus on what you are trying to accomplish instead of as a distraction from it. Hence the departure from personal blogging and the entry into business blogging. Now I’m excited and energized to see how I can transform other hobbies and distractions into positive business momentum. I expect the compound effect to be tremendous and hopefully profitable.

OK, so how does business blogging help focus my entrepreneurial energy? By keeping my mind on business for one. But more importantly, when you have to articulate something verbally or in writing, it forces you to think through it differently than if it just rattles around in your head. It starts to take form as you externalize it, ideas mature, new solutions come to light and new questions are asked starting the cycle all over but from a new point, not the same place you just were.

So how do we get there? The first step is to get honest with your self about what your distractions are. It’s OK, we all have them and should, it’s how we use them that gets us into trouble. So my challenge to you is to think about how you can take one (just one) of those distractions and turn it into something that will help you focus on your business or financial goals.

In return, let us hear what you come up with. I’ll bet there are some brilliant solutions out there and many people may share your distraction who would benefit from your ideas.