networking for fun and profit

young man riding hour hand of clockhow to make business development fun, and not a dreaded, anxiety-provoking activity.

bonus checklists with 57 items: from 15 simple conversation starters to top 5 mistakes.

by marc rosenberg
the rosenberg practice management library

networking is creating a group of acquaintances and professionals and keeping it active through regular communication for mutual benefit.

more: why consultative selling works | how marketing systems produce business growth | 6 keys to developing new client prospects | now is the time to activate your referral network | does your firm recognize all its skills? | protect and grow existing clients | the 4 marketing disciplines | 15 powerful niche marketing practices
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truthfully, all professional service providers want to be held in high esteem by their clients and professional colleagues. practicing true professionalism means becoming more than just a vendor who takes and fills orders from a client. it means transitioning into a trusted advisor whose expertise transcends your individual practice. trusted advisors know the right questions to ask and where to find the right answers.

building and maintaining a dynamic pipeline of referrals is a critical activity for successful practitioners. cultivating relationships with other people who produce referrals is a function of having mutual chemistry and rapport, offering complementary services and making a concerted effort to achieve results.

referrals are most likely to happen when the possibility for mutual benefit exists. the one who refers wants to solve a problem or meet a need for a client. the individual receiving the referral wants an opportunity to perform additional services in his or her specific area of expertise. unfortunately, understanding this is one thing; actualizing it is another.

networking: getting the conversation going

introduction

  1. “i’m (name). i’m debbie’s cousin (or jeff’s partner, or whatever your relationship is to the host, guest of honor, etc.).”
  2. “i’m (name), sarah’s husband. sarah is debbie’s cousin (or jeff’s partner, or one of john’s book reviewers).”
  3. “how do you know the (guest of honor, host, other attendees)?”
  4. “i’ll bet you have some good stories about … (usually something related to other key people at the event).”

sustain

  1. “what do you do for fun? how long have you been doing it?”
  2. “gone on any vacations lately?” compare notes if applicable.
  3. “seen any good movies recently?”
  4. “read any good books lately?”

occupation

  1. “so, you’re a (lawyer, accountant, stay-at-home mom, coach).”
  2. “tell me about your business.”
  3. “how does it compare to what you thought it would be?”
  4. “if you had it to do over again, would you make the same choice?”

close

you may break off a conversation by saying something a little humorous, such as:

  1. “well, i guess i’ll go find sarah and tell her all the reasons she needs to change careers.”
  2. “well, i guess i’ll go find sarah and tell her all about our next vacation destination.”
  3. “thanks for spending time with me. i guess i’ll go find another victim.”

closings are usually followed by “i hope you enjoy the rest of the …”

five common networking mistakes

 from timothy allen for the daily cpa.

  1. not having a goal in mind. example: “i want to find three prospects who could use my services and would be receptive to my phoning them in a few days to follow up.”
  2. spending too much time in one place. business development is a contact sport. the more at-bats you get, the more hits you make. resist the temptations to spend time with people you already know or to devote excessive time to people who you bond with.
  3. doing only the obligatory business card exchange. just shoving your card into a stranger’s hand and moving on is a surefire way to get your card thrown in the trash. introduce yourself, ask questions and tell your new acquaintance what you do, how you help people and what types of referrals you are looking for.
  4. throwing down too many adult beverages. it’s a professional event, not a happy hour! you’re there to meet people, impress them and make connections. that’s pretty tough to do when you’re tipsy.
  5. not splitting up. it’s common to attend networking events with co-workers, and that’s ok. but once you get there, divide and conquer. learn to meet people you don’t know, not the ones you already know.

says allen, “networking is not something that comes naturally to most of us. you need to learn how to become more comfortable around strangers and how to maximize your efforts. it takes a little bit of work and preparation, but it’s not overly difficult.” networking is like everything else in business development: the more you practice, the more comfortable you will be and the more effective you will become.

tips for following up with a networking prospect

 before you meet with the prospect, do your homework:

  1. specifically, what do i want to accomplish during the meeting?
  2. identify “what i know” and “what i need to know.”
  3. identify the tools i will use to help me prepare.
  4. prepare my first minute and last minute.
  5. develop my list of questions.

during the meeting:

  1. remember to do 80 percent listening and 20 percent talking.
  2. take notes and highlight action items you commit to in the coming weeks.
  3. prioritize the prospect’s issues, concerns and goals.
  4. dig deeper into the highest priorities.
  5. agree on next steps.
  6. schedule the next call or meeting.

after the meeting:

  1. self-assess. did you accomplish what you wanted?
  2. follow through on commitments.
  3. send a note thanking the prospect for the meeting.
  4. build the relationship; make it ongoing.

the elevator pitch

andy warhol famously said, “in the future, everyone will be world-famous for 15 minutes.” a lot has been written about what warhol meant, but we won’t bore you with it. in common usage, it means that during your life or career, there may come a moment when you have an opportunity to become famous. not famous like a movie star or baseball player, but famous in terms of making an impact or wielding influence that will last long after the 15 minutes. it may be financially beneficial. more likely, people will remember you for what you did in your 15 minutes. the moment will come with no warning and it will be fleeting. shame on you if you don’t make the most of these 15 minutes; you may not get a second chance.

here are some examples:

  1. being introduced to someone at a networking event
  2. meeting someone at a cocktail party
  3. attending a rotary meeting
  4. or seeing someone in the elevator of the building you work in, someone you see often

if only the window for that opportunity lasted 15 minutes. in reality, most of these moments of fame last seconds. you must be ready when your moment arises. you should be prepared to tell that person in 10 seconds who you are and why you are different, in a way they will remember. you have 10 seconds to earn another 30.

rehearse your lines on a regular basis so that you are prepared in an instant’s notice for your moment of fame.

the elevator pitch worksheet

an elevator pitch is a short self-introduction. to prepare a memorable elevator speech, use humor or a tagline that helps you stand out from the crowd. what do you want your listeners …

  1. [ ] to know? who you are, the solutions you provide and benefits offered.
  2. [ ] to feel? interested, intrigued by your uniqueness.
  3. [ ] to do? engage with you, sharing information about themselves.

the first element of an elevator pitch includes your name and the benefit of what you do. there is no need to include your title or firm name until much later. for example, financial planners might say they help people sleep at night. i met a money manager at a party years ago who told me he grows money.

more examples:

cpa: “hi, i’m jamie newman and i’m the irs’s worst nightmare.”

management consultant: “hi, i’m marc rosenberg and i stop cpa firm partners from killing themselves.”

trainer: “i turn conflict into an agreement. i’m robbie gordon of the conflict resolution institute. we teach people how to resolve conflict so they can live happier lives.”

to extend the elevator pitch and create more interest, consider the following:

i work with:                                                                                                      

(customer base, target market)

who want to:                                                                                                     

(what your clients want/need)

using:                                                                                                                   

(methods, tools, techniques, competitive advantages)

how to make it rain

1 – have a game plan. don’t try to be all things to all people. focus on activities that will be most successful. target market.

2 – broadcast a message. the ideal complement to selling professional services is the name recognition of your firm and/or yourself. this way, when you meet people, they have already heard about you and are aware of your reputation. this establishes credibility before you start selling, making it easier to sell.

3 – become famous. yes, a cpa can become “famous” by creating an image and a reputation as an expert. publish articles. speak at conferences. write blogs. tabulate industry surveys. people love hiring experts and are willing to pay a premium for perceived expertise. and when you are famous, you get to practice everyone’s favorite type of business development: picking up the phone and accepting the new client.

4 – choose people over paper. these are the two main types of practice development. meeting with people face to face will always get better results than activities such as articles, speeches, brochures, websites, and ads. people’s activities are way more effective than paper.

5 – remember that relationships precede revenue. this is what defines selling professional services. always start the selling process by forming a relationship with the prospect.

6 – pledge. many years ago, a great managing partner told me something that struck a chord with me. he said that he learned to become effective at business development by “pledging.” by that, he meant that he continuously practiced his sales style. he accepted every speaking opportunity he could get. he met with every prospect willing to listen to him. he made an embarrassing number of mistakes at first, but he gradually developed his own selling style and became very effective at it. if you don’t succeed at first, keep trying.

7 – “if you don’t ask, you don’t get.” we would all like to think that the best way to get business is simply to do great work for clients and then wait until they give you unsolicited referrals. this method results in a long wait for most of us. to get referrals, you have to ask for them. let your clients and referral sources know that “business is great and we’re looking for more” (chris frederiksen’s legendary line).

8 – maximize times at-bat. selling is a contact sport. the more times at bat (sales opportunities), the more hits (sales) you get.

9 – wiifm. one of the best ways to sell professional services is to always put yourself in the shoes of the client or prospect. just like you, when they are being sold to, they are asking themselves, “what’s in it for me?” when you have a selling opportunity, focus on listening to the prospects and understanding their needs. do as little touting of yourself as possible.

10 – polish your elevator speech. be ready when your 15 minutes (or seconds) of fame hits.

11 – make money by getting rejected. the legendary sales training maven tom hopkins shares this with his audiences:

  1. one closed sale nets you $10,000.
  2. it takes five quality contacts to get one closed sale.
  3. that means you get one yes and four no’s.
  4. thus, each no nets you $2,000! you’re rich!

hopkins put this a second way that we have always loved. he called it “the champion’s creed”: 

i am not judged by the number of times i fail,

but by the number of times i succeed,

and the number of times i succeed

is in direct proportion to the number of times i can fail

and keep trying.

dealing with rejection is hard for anyone, especially cpas. we just have to master it.

12 – provide world-class service. the biggest source of new business for cpas by far is referrals from existing clients. but you won’t get the referrals unless your clients are really happy with the quality of your service (not just the quality of your work). research has shown that if clients rate your service quality an 8 or less on a 10-point scale, you are vulnerable to losing them, even if you are doing good work and the clients like you. the lesson to learn: provide world-class service to your clients if you want to keep them and get referrals.

13 – mine the gold mine in your backyard. when cpas embark on ambitious business development plans, they often overlook their best source for new business: existing clients. these opportunities include expanded services for your clients as well as referrals to others. make sure that a major part of any marketing plan involves paying attention to your existing clients.

14 – specialize. bringing in business doesn’t come easily for most cpas. unfortunately, the vast majority practice two techniques that make it more difficult to sell. first, they use a scattergun approach, trying to get business from a wide variety of sources. second, they operate a generalist practice. by specializing, you make it easier to identify prospects who really like buying from experts.

15 – have fun! find ways to make business development fun, not a dreaded, anxiety-provoking activity.