As a small business owner with a traditional storefront there are numerous avenues for promoting and marketing your business. Many of the obvious ones such as newspaper ads, direct mail and radio/TV spots all share a common problem, they usually cost alot of money and there is usually a mediocre return on investment. Networking and cross promoting with other small businesses can be a great and inexpensive way to get the good word out about your business. Other small businesses may not feel the same zest for marketing success as you do and this is what I wanted to discuss in this article.
When I opened my first small business I was dizzy with all of the marketing possibilities available to me. I dreamed about forming key partnerships with other like minded business and dreamed how we would all ride our wave of success straight to the top.
I made a list of about 50 local businesses that I would go and visit during the first few weeks after we opened. I devised a great introductory letter introducing myself and my business and how we could both help each other achieve success through join promotions and networking. I remember setting a schedule where I would visit 5 businesses a day until my task was completed. I remember my first day building my “Networking Empire” fondly. The owner of the first business owner I spoke with was very nice. She listened with a smile as I told her about my ideas and said it sounded great and she would look over all of the information. I was ecstatic as I left thinking about when I would make my follow up visit. As I got into my car I saw her at the front counter as she ripped up my letter and tossed it into the waste basket. I felt like I just got dumped. As I drove off I dismissed her as an oddity and moved onto the remaining 4 businesses on my list. To make a long story short, not one was interested in any kind of networking and some treated me with disdain like I was an encyclopedia salesman or something.
So what happened? According to all of my business books, blogs and presentations I have seen, every small business owner wants to build a successful business. Why wouldn’t someone want to join forces with another business to share customers and grow their business to new heights? I have learned 3 things about small business owners, especially ones with traditional brick and mortar businesses.
#1 Many of them do not read and study about small business success, leadership, marketing or anything else. Not everyone has a passion about learning new ways to grow their business or how to be a better manager or anything for that matter. It sounds strange but it’s absolutely true. Many people go into a new business venture knowing what they know and they think that’s all there is to know.
#2 Many small business owners who at one time showed a passion and enthusiasm for their business have since lost it through the daily grind of work, bills, boredom, disappointment and so on. It’s easy to become cynical and jaded when what you dreamed your business to be looks nothing like the one you show up for every day, and take home with you every night. There is never time to set aside for a new marketing venture or a course in great customer service because they are too busy minding the store making sure nobody steals anything.
#3 Customer service is a foreign language. Many small business owners identify their business with themselves, if you don’t like the business then you don’t like me. They treat every complaint as a personal attack and usually respond in kind. The attitude, “If you don’t like it then go somewhere else” is prevalent in many small businesses.
So what can we learn from this?
#1 Your small business can’t grow unless you are growing too. Keep educating yourself and be open to trying new things. Don’t let yourself become the biggest roadblock for your business.
#2 Stay optimistic. Your going to have high and low points in your business. Sometimes it’s stomach churning, that’s why owning your own business is not for everyone. Building a successful business is really hard, which can be a good thing because if it were easy then everyone would have one.
#3 Your business is all about customer service. It doesn’t matter if you sell tires, mop floors or deliver newspapers, your in the customer service business. Your business will grow in relation to how you treat your customers. Treat them well.
To end my story, out of the 50 local businesses I visited, only 4 were interested in any kind of networking. Over the next 2 years I created several joint promotions with those 4 businesses that led to lots of new business for all of us. In one business, their best customer became mine and it led to several thousand dollars in sales, through them and the referrals they brought in. Networking can take up alot of time and effort. It may be frustrating and time consuming walking around and knocking on doors and most will have no interest in what you have to offer. Just keep in mind that for every 10 small business owners who have no interest in your offer, there may be one who is ready jump in and try something new with you.
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Gary Shouldis
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There is very useful information in this article. Thanks for posting it.
One essential thing I have noticed teaching networking, including small business networking, is that how effective you are at building relationships is not determined by one thing, but by a system of things: your image, what you say, what you listen to, how you invest in a relationship in time.
For me, good networking, communication and relationship building skills mean finding a way to putting your true self out there packaged in a way which compels people to want to interact with you, to know you and learn what you are about.
Best,
Eduard
Hi Eduard,
Thank for the comment. I have learned, through trial and error that when creating networking channels with other small businesses, you have to clearly explain “What’s in it for them” and how they can benefit from the relationship. Too many small business owners try to push themselves and their ideas instead of focusing on the other person. Just like you said, when networking it’s important to be yourself and look to create relationships instead of pushing an agenda. Cheers, Gary
Only 4 out of 50?!? Wow. Well written and eye opening post, Gary. Could be the makings of a book. Go Gary. GO! Be Progress.
Hi Dean,
Thanks for the kind words. I’m happy to say that my “conversion” rate is much higher than when I first started. The long term goal should be to build a lasting business relationship and figure out ways for everyone to mutually benefit from the relationship. Too many small business “Networking” events turn into too much “selling” and not enough relationship building. In relationship to my post, I think small business owners get bombarded with sales pitches and are weary of people coming into their shops with an “offer”. On the other side, I think many small business owners get impatient when others aren’t immediately receptive to their ideas. Thanks again! Gary
I am confused right now that is why I am researching articles about small businesses. I am just starting and I have a lot of good things in mind. I am sure this article will help me one way or the other.
Glad it helped Debbie
That business owner who ripped up your letter got no decency. I did the same thing you did before wherein I talked to several business owners in our area but got dumped too. I found a business partner online and we are still staying strong.
Awesome Jared! Finding the right people to pair up with is critical. Good luck!
This article is an eye opener for all of us with small businesses. Sometimes we tend to forget to educate ourselves and make something new for our business. This is a great opportunity to get back on our feet again and reinvent.
Thanks Natalie! I gave up for awhile too as I was busy and felt like it was not a good fit for my time since I wasnt getting results. I have since paired up with a few great business owners who are highly motivated and i’m happy to say it is working great!
Collaborating with other businesses can help. I wonder why some owners don’t want to do it. They can reach more people by collaborating.
I think its one of those things that require alot of time and effort, and does not produce results right away. Most people give up on it after a few tries. You just need to find the right people that are as motivated as you.
I met with a small networking group, once a month, for 6 mths in a row. The core of the group included, a realtor, a mortgage lender, a small business HR and insurance consultant, a Scentsy saleswoman, and myself, a property and casualty,and life and health insurance agent. (We also had various other occuptions, i. e. lawyer, credit fixer, etc. for less lengths of time) I had one business transaction the entire time and that was it. The Scentsy rep gave me her auto and home, personal umbrella insurance. I bought her to my office where she had sales with three individuals including myself, and we also put a display unit up in our lobby, with her business cards. Despite the interplay of my business with the realtor, and mortgage lender, I never was able to give them a referral, and I never receive one from them. I never could figure out a way to help the realtor and mortgage lender….I never ran into people looking to sell/buy a home that didn’t already have a realtor and/ or lender. I think networking only works when you can help your co-members (duh!) Why would my realtor and lender want to refer business to me when I’m not sending them business? In my business…EVERYONE is a prospect…everyone has to have auto, home, business insurance. But I can’t give referrals to everyone in return. I don’t think this situation would have changed if I had given it another 6 months.
Just my experience and two bits.
Hi GL,
thanks for commenting….I think you touched on a point that is so important when it comes to networking…..the fact that people refer people they know, like and trust. It’s hard to attend a networking event, hand out some business cards and give an elevator pitch and expect people to actively refer each other. Building referrals takes time, patience and alot of work. You have to be committed to helping out others before you can expect to have people looking out for you. What I do at networking events (when I attend them) is to look for 1-2 people I like, ones that I can see myself referring and try to build a relationship with them. I always try and start out by helping them first as a sign that i’m committed to helping them grow their business. Thanks for the comments and for bringing up an important aspect of networking. Cheers
[...] you can see, i’m not a big fan of networking events created for the sole purpose of networking. I do think you can find some great people at events [...]