Setting up a startup business is an exciting and daunting time. And the pressure is on to deliver growth, and ensure your startup is not one of the 60% that fail in their first three years!
So how does networking work for startups?
Here’s THREE reasons why every startup should have business networking on their radar.
1. Knowledge
You may be a whizz at whatever you sell or the service you provide, but trust us, there is still a LOT to learn about being in business.
Successful business owners NEVER stop learning.
Surrounding yourself with people who are already in business can provide so much additional knowledge and experience for startup businesses. From general tips on things like cash flow, sales, marketing and bookkeeping practices to access to advice on funding, mentors, training and free business support that you may be able to tap into.
They’ll also be in the know about upcoming webinars, training courses and business expos that you might find useful. And recommend books they’ve read that could make a difference to your success.
You’ll be surprised how much you’ll need to adapt your business model in the first couple of years, and the knowledge you gain from networking will be invaluable.
2. Business Contacts
When you are a startup business you often don’t have a strong network of other business people in your little black book.
If you’re going to succeed in the roller coaster environment of being your own boss then you are going to need some high quality business friends around you because it’s tough out there – especially in your first year.
Gaining a great reputation in your business community and in your industry is essential if you want your startup business to grow and for people to refer you.
Networking is a sustainable and cost effective place to start and hone this process.
It’s a long game, and often doesn’t pay out straight away, but making it part of your life means that you’ll develop sustainable relationships that keep giving – no matter where your business road leads.
Remember that people buy from people.
Enjoy getting to know people who can become part of your network and seeing what you can do to help them. It’s likely they’ll want to reciprocate further down the line.
3. Customers
It’s never too early to start spreading the word about your startup business. Many business owners start networking and chatting to people about their idea well before they even launch!
Not only is this a good way to start warming up potential referrers and customers, but they’ll probably have some useful thoughts on product/service development and how they might like to use it. This intel can be hugely impactful for hitting the ground running.
It’s worth shopping around to find the networking groups that work for you. There are so many to choose from!
You’ll definitely find customers in a networking room, but it’s important to note that they may not buy straight away. They may not need it yet or they may want to get to know you a lot better before they decide to work with you.
There are however, plenty of people at networking events that know or are already working with your target audience. So making friends with these people will lead you to new business in due course. You’ve just got to put the effort in to build the relationships which could sustain you for many years to come.
Most importantly enjoy your networking time. Make friends, help people and grow your reputation and the sales will take care of themselves.
So does networking work for startups?
More than just that…it’s an essential activity.
So get out and meet people and watch your business take off!
Good luck!
Further Resources
The Growth Community have a number of great networking meetings every fortnight and we always give our guests a very warm welcome. Why not pop in and see us soon?
You might also enjoy our blog on following up from networking or find it interesting to read about how one of our members grew his business from startup through networking with The Growth Community.
