The Art of Networking
Here’s an article written by our Co-Founder, Terry Luker, for DealMaker Magazine, originally published in their October 2019 issue. We’ve updated a few details from the original, but the takeaways remain just as relevant today.
Meeting new people can be a struggle even at business events structured to facilitate networking. However, practicing networking skills, even during lunch breaks, can pay dividends down the line as new contacts can lead to new referrals and bigger, better deals.
I stopped to get gas one morning and noticed that an older gentleman appeared to be struggling with the card reader at his pump. After a minute or two, I stepped over to see if I could help him. He said the machine wasn’t reading his card. We quickly figured it out and then had a great conversation. He commented on how much he liked my truck; I told him the best thing about the truck was that it was paid for!
I enjoy meeting people. Indeed, engaging with others is how I continue to grow and refine my skills in networking. Walking into a ‘cold call conversation’ is never easy. I obviously didn’t have an appointment with the man at the gas station, and we had never met before. But this was an opportunity to help and to learn. Similarly, cold calls can be a valuable learning tool.
I will admit that many of us (me included) struggle when we’re in conversations with someone we’re meeting for the first time. This is especially true if we weren’t invited to have the conversation. But if you want to refine your networking skills, you can benefit greatly from these types of meetings and exchanges.
Networking is an art and an essential tool to building your business. Networking events are where you can find a treasure trove of people to network with and to grow your business. And yet, many are not comfortable with meeting new people at these types of structured business gatherings.
The best advertising for your business is always word of mouth. When people are referred to you by someone they know, usually there are no walls built up around them. They’re more willing to listen to your solutions and to engage your services if someone has put their stamp of approval on you and your firm.
I’m not saying that you must attend every after-work event or breakfast networking club out there. You should look at the events and see who might be attending and decide if there are any synergies that would be mutually beneficial. For instance, at ACS, we don’t provide consumer lending so groups that are focused on business to consumer relationships don’t really provide any opportunities for us. Meetings that are business to business however can have great value.
For example, I’ve had more than one individual ask me why they should still attend CLBA Conference and Expo if they’re currently enjoying success with their business. To me, it’s a no brainer. You’ll get to meet with people from all walks of life who work in the same industry. You’ll network with like-minded people who have different ideas and different approaches to what we do for a living. It’s a great opportunity to network and build relationships that can last forever. These types of events are paramount to building a successful network of people who can assist in growing your business. The ideas generated and the seeds of growth that can be planted during that three-day conference are just too valuable to pass up.
Another optimal networking opportunity for me is lunchtime. I really don’t like to eat lunch alone, so I make it a point to have a lunch meeting with someone as often as possible. I look for someone whose business I can add value to, someone I can learn from, or someone who can add value to my business. I encourage our team to have lunch or coffee meetings with people who can grow their business. One of our former staff members was a professional golfer. While he was giving pointers on the golf course, he was also conducting meetings. Wasn’t someone he helped with their golf swing more likely to remember him and want to do business with him? He must have been doing a good job on the links, because he brought in a lot of business from his network.
Getting back to lunch networking don’t limit your lunch appointments to just your industry. Step outside of your typical network and learn about other industries. In our business, the saying is that you can get a meeting with almost any banker if you offer to buy lunch. When I started ACS, I certainly found this to be true most of the time. I had over 200 lunches, breakfasts, and coffee meetings with bankers and lenders. Many of those meetings never went anywhere and we didn’t end up doing any business together. However, in every meeting I learned something about their bank or the banker. I learned something about each individual that I would not otherwise have known. I learned who I really wanted to do business with, and also who I did not.
I believe networking is an art. The biggest card you must play in networking is simply being yourself. My staff teases me all the time that every piece of clothing I own has a University of Alabama logo on it! Recently I was on a business trip with my family. We were standing in the middle of Times Square in New York City and yes, I was wearing a University of Alabama polo shirt. Two gentlemen approached me and said, ‘Roll Tide’. So off we went into a conversation that eventually led to the topic of commercial lending. One of them was part of a large credit union group that had a lot of money on deposit and was looking to get into the commercial lending business.
The bottom line is if you want to successfully grow and expand your business, you must learn to be great at networking. Networking will bring you more business via word of mouth than any other possible source. You’ll also find that if you’re successful at networking and building a great networking group, then the business generated and the referrals you receive will be your most profitable deals. There is generally no monetary cost to networking. There may be some membership dues and lunches, but you’re not paying for leads that may or may not work. And if a referral comes to you through your network they will usually already trust you and believe you’re the expert. This confidence is why their friends, family or business associates sent them to you in the first place. Become a great networker and watch your business explode.