Networking your Business, Part I
When it comes to networking your business, every small business owner needs to determine the best options based on value, cost, and the type of groups that cater to the clientele you’re aiming to reach.
If you are just starting out, you may be overwhelmed by the influx of offers that come your way. Many marketing companies track new business registrations and target you specifically, knowing you are eager to grow and may be inexperienced in marketing and advertising. They may present appealing promotions that seem tempting, even if the return on investment is minimal.
Even seasoned business owners can occasionally make poor marketing or advertising investments. Here are some updated tips to help you navigate the current landscape:
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Set a Budget: Allocate funds for various promotional activities, considering all the following:- Yearly membership fees for professional organizations
- Chamber membership fees
- Giveaways (both promotional items and gift baskets or certificates)
- Networking group memberships (such as BNI or LeTip)
- Digital advertising (social media ads, Google Ads, etc.)
- Traditional advertising (print media, billboards, etc.)
- Identify Your Ideal Client: Be very clear about who your ideal client is and choose networking options that specifically target them. Remember, it’s impossible to be all things to all people – pick a niche and focus on it.
- Determine Your Business Model: Are you a B2B (business-to-business) or B2C (business-to-consumer) company? For example, while chambers of commerce can be great for brand-building and community relationships, they are typically more beneficial for B2B connections.
- Calculate ROI: Understand how to calculate the return on investment for any networking, marketing, or advertising costs. Know how many clients you need to gain from a particular investment to make it worthwhile. For instance, if an average client brings in $1,000 per year and an advertising opportunity costs $2,500, you’ll need to secure at least 2.5 clients to break even.
- Manage Your Expectations: Networking and advertising efforts require consistency, repetition, and participation over time to yield results. A single ad or one visit to a networking group is unlikely to bring immediate clients. For example, the typical ROI on digital ad campaigns can be quite low, often requiring large-scale efforts to see significant returns.
- Embrace Digital Opportunities: Utilize social media, email marketing, and online networking platforms to reach a broader audience. Virtual events and webinars can also be effective ways to showcase your expertise and connect with potential clients.
Despite the challenges, there are many opportunities to grow your business. Joining groups where you can volunteer, sponsor events, speak to groups, or write articles that get published locally can be highly effective and cost very little.
Be sure to read our next newsletter, Networking Your Business, Part II where we go into the strategic marketing strategies post pandemic. Society and the World are ever-changing, so too must you.
