Relationship = Repeat + Referral

When you don’t have a lot of money to market your services, you have to rely on your relationships to help grow your business.

One strategy to develop relationships to help grow your business is networking. I define networking as follows: Networking is the process of creating and deepening relationships that lead to a desired outcome.

Therefore, it is different from socializing and it is much more than just handing out and collecting cards. It is also not about selling on the spot. It is all about relationships.

Below is a list of tips to help you do it better.

• If there is a choice between making yourself look good and making the other person feel good, choose the latter
• There are common ineffective approaches to networking that you MUST avoid
o The Harvester: who gathers cards like fallen apples with no attention to relationship building
o The Flower Pot: who attends events, hangs out by the food, the bar, or against the wall and rarely meets anyone. This person will later complain that networking is ineffective
o The 3 year old: who talks incessantly and only about “ME”
o The Pushy Salesperson: who tries to sell products, services or book meetings as soon as possible to anyone they meet
o The “Woe is Me”: who seems never to have an experience in which they can’t find something to complain about. If people seem to always need to go to the bathroom, to fill a drink or go talk to someone they haven’t seen in a while within a few minutes of talking to you, consider whether you’re complaining too much.

• Success comes from a combination of Strategy, Attitude and Tactics

Strategy
• The first part of effective strategy is to know your objective. Are you going for:
o Prospects
o Referral partners
o Suppliers
o Staff
o Financiers
o Knowledge
• Once you decide that, set a goal for the number you want to meet and connect with (without becoming the Harvester)
• The second part of effective strategy is to know your event
• If your goal can’t be met, don’t go
• Mix it up a bit. Go to the same group so you can develop relationships, but don’t be stuck. Try new events
• Think beyond events and go engage with people you meet on a 1-1 basis after the event.
• The Third part of strategy is follow up. You should plan your follow up ahead of time so you’re ready to reconnect the next day. Ways to follow up include:
o Connecting them with others (but don’t be so exuberant in your connecting that you become annoying)
o Advise them on some problem they disclosed
o Educate them on an area of your expertise
o Involve them in something you’re involved in
o Absolutely fulfill your promises

Attitude
• Be present. It is astonishing what you might miss when you are not present. Employ active listening
• Be authentic. People can smell inauthenticity. So be yourself at your most interested, enthusiastic and positive best.
• Be helpful. It’s a simple rule. When you give (authentically), you will ultimately get. Instead of setting an objective of meeting x prospects, try setting a goal of meeting x people you can help. When you become a person who provides value, you become valued.

Tactics
• Ask great questions. For example:
o What’s the best part of business for you?
o What did you set out to accomplish when you started out?
o What frustrates you?
o What do you want to accomplish over the next year?
o What would you need to do become happier?
o What have you tried in the past?

• Wear your name tag on the right side so when you shake hands, your name is easy to see.
• Put your cards in one pocket and theirs in another so it is smooth and seamless
• Bring a pen and take notes.
• Have a HALF of a glass of a drink. (That way, you need only take a swig to be in a position to extricate yourself from a bad conversation.)
• Give good handshake
• Manage your time with people. Ensure you meet your goal.
• Use names
• Thank people
• Have fun!

In peace there’s nothing so becomes a man, As modest stillness and humility; But when the blast of war blows in our ears, Then imitate the action of the tiger: Stiffen the sinews, summon up the blood.
King Henry V

Coughlin’s Comment:
A strong leader rises to a challenge and does not shrink back. They are able to summon the warrior spirit, represented here by the tiger, when circumstances demand it. In saying this, I do not mean it is necessary to be hostile in competition, aggressive to others or in anyway defeat another person. Instead, it is to muster the energy, courage and spirit and act indefatigably in the face of challenge. The warrior analogy is useful for a couple of reasons.

First, when one thinks of a warrior, it is clear that a great warrior, faced with a charging adversary, cannot put down his sword and call a time-out just because he doesn’t feel like fighting. To do so would spell disaster. You become a powerful leader when you are able to consistently do what is necessary to succeed, even if it is hard, tiring or thankless. As we have observed in previous weeks, if you do not give it your all, those following you will not either. By demonstrating your total commitment, adversaries flee, challenges are overcome and followers are inspired.

The second reason is often overlooked in discussions of the warrior spirit. It is this. It is very, very difficult to maintain the warrior’s energy all the time. As a leader, you do not always have to be pushing or driving to the maximum. It is appropriate both to enjoy and demonstrate modest stillness and humility. Note that Shakespeare says “modest stillness”, not immobility. Action is still required, but not necessarily at 100% intensity, 100% of the time. By allowing yourself this indulgence, it becomes clear to those around you that, when the tiger is unleashed, it is not about you or your ego, but about achieving the goal. It also allows you rebuild your energy so that when the next challenge arises, you stand ready to see it vanquished.

Action Steps for the week:
1) Identify 3 things that are critical to the success of your business that you have avoided because “you don’t feel like it.”
2) Attack them with passion and determination until they are completed.

Until next time, remember:
Success is Yours…Go Get It!

Coughlin’s Comment:
Over the next few weeks, I want to introduce some features of leadership, since, as an entrepreneur, you are a leader in your business and, probably, in your community. In this quote, Shakespeare highlights a dynamic that is inherent in the relationships between leaders and those they lead.

People who follow look to the leader to set the rules of the game. How are things done within this organization? What is acceptable, what is unacceptable, what is encouraged and rewarded and what is merely tolerated? Often do I hear business owners complain that their team members “don’t get it” or don’t seem to behave as expected. Then, when we dig in a little bit, we find an absence of a clear articulation of expectations, inconsistency in treatment and behaviour from the leader that can be characterized as “do as I say, not as I do”. Your actions are the glass through which your team will see how they either should or can behave.

This can be either inspiring or terribly confusing for team members. Consciously or unconsciously, they seek to model the behaviour that the leader demonstrates as acceptable. They learn from you how to act in the workplace; both in terms of your own behaviour and the behaviour you tolerate in others. If you mandate systems and do not follow them, you show them that double standards are acceptable. If you are sometimes friendly and sometimes combustible, your team will learn to fear you. If you announce initiatives, changes or programs and then let those ideas die on the vine, you teach your team to be unenthusiastic, and even downright cynical, about proposed changes. If you allow poor performers to remain without consequences, the team will learn that shoddy work will be tolerated.

One of the most important principles of communication that any leader can learn and embrace is that “Communication is the response you get.” If you truly understand and accept this principle, then you will refrain from pointing fingers at the team and instead look at yourself to determine what you are writing in “the book wherein subjects’ eyes do learn.”

To help them learn, paint a clear and inspiring picture of where the business is going. Articulate the values that are important to you and, by extension, to the business. Demonstrate passion for that vision. Be consistent in your own behaviour. Communicate your objectives. Reward excellence, refuse to tolerate poor performance. Follow through. Clarify everyone’s roles. Reward responsible risk-taking. And include your team as much as possible.

Action Steps for the week:
1) Ask your team members to explain the vision of the company. If they can’t, then explain it to them
2) Ask your team members to articulate their job descriptions. IF they can’t or if they are different from what you expected or if they conflict with those of others in the organization, then clarify.

You’ve heard or participated in one of those conversations. The willingness of people to be seduced by these conversations has caused so many ills, and yet it’s rare that people get called on it.

So, I’m calling it out.

Two of the most frequent variants came out in this conversation. It went something like this. “Well, our client screws us around like this, so we can treat our supplier the same way.”

Now, it was framed a bit more delicately than that, but that was the upshot. When you see it in black and white, you can see how wrong it is, can’t you? Didn’t we all learn – oh, say when we were 5 – that 2 wrongs don’t make a right?

Why should your supplier be screwed just because your client is a jerk? Or framed another way, what right do you have to complain about your client when you screw your supplier around?

But then comes variant 2, to justify this position. “It’s probably not right, but it’s just business.”

Really?

Who decided that business is immune from moral examination? We humans interact in all kinds of environments: families, social settings, spiritual environments, sporting groups, charitable organizations and business environments. In all these environments, we build relationships and reputations that are ultimately built on character and trust.

If it’s wrong, it’s wrong. You don’t get a pass just because “it’s business.” That excuse is old and it’s very tired.

As a society, we need entrepreneurs who model the best of what we can be: creative, courageous, service and value focused, successful…and ethical.

What’s interesting is how they bring very different perspectives on the same problem. The problem I’m talking about is generating profits.

Brian Tracy maintains that there are very few problems in business that can’t be solved with more sales. Therefore, learn to sell and get out there selling or lead people who are selling.

Keith Cunningham has seen many business go out of business or continue struggling (as have I), even though sales are increasing. He maintains you should know your numbers and bring a hatchet to your costs.

Now, these 2 gents have probably 60+ years of business experience between them. So, to a certain degree, I have grossly oversimplified their teachings. And neither would say the other is wrong; it’s a matter of starting point and weighting.

I would never presume to suggest one is right or wrong. I simply want to explore, over a couple of blogs, how both of these perspectives can help you. Today, I’ll share Keith’s.

I recently worked with a client who has been on an upward trend in sales. However, she had a very difficult time tracking her cost of goods. When we got a strong handle on them, we saw that there were some sharp swings in her cost of goods and, therefore, a lot of variability in her Gross Margins.

With a bit of quick math, I was able to show her how much profit she lost by not managing these costs. It was a significant number. Needless to say, she was displeased.

But she was also motivated. She is now diligently keeping those costs in check, allowing her profits to remain high.

Another client went to town on cost management. With virtually no growth in top line sales, they were able to produce the highest profit in company history and provide take home pay to the owners roughly 2.5x the previous year.

How good will it feel to take home more profits with no increase in work? If you haven’t been managing your costs closely, do you think it might be time?

There have been countless shipwrecks over the centuries. But somehow, the Titanic stands out. Somehow, it wasn’t just another shipwreck. It’s like it was a colossal smack on the back of the head of collective human arrogance. This was supposed to be the unsinkable ship and it went down on its maiden voyage.

It seems to me, one of the most important lessons from this misadventure is the importance of humility. Confidence is fantastic and is indeed necessary for success. But blind arrogance is simply dangerous.

Humility is the ability to be appropriately confident about the things you do know and wise enough to be aware of what you don’t know. And then to seek out solutions or input with respect to what you don’t know.

Some people laugh when I suggest that Richard Branson is a great example of humility in action. They suggest he is brash and arrogant. I counter that he is appropriately confident. He does succeed in what he sets out to do so his confidence is warranted. At the same time, he knows what he doesn’t know.

When he started Virgin Galactic, he knew next to nothing about flying to space. So, he simply went out and found the best people to make it happen. And he ensured that they tested, tested and tested to minimize risks, knowing that there were risks that may not have been previously considered. He never assumed he knew better, or even that those he brought into the project knew better.

If you have or had a teenager, if you know a teenager or ever were a teenager, you know that teenagers “know everything.” Which makes them very closed to learning. They stop listening because they already know it all.

My point? The two deadliest words in the English language, with respect to learning, are “I know.” They are the antithesis of humility and they will get you into trouble.

One of the greatest attributes you can cultivate as a leader in your business is true humility. Have the confidence that you can overcome or avoid the icebergs, but continually solicit and accept input and advice from others. And keep asking yourself “What am I missing? What am I assuming?”

Those involved in the Titanic, on the other hand, simply assumed that everything would be fine. And, as we know, it wasn’t.

Today, it is about the ease with which we forsake principles that serve us in the long run to satisfy short term desires that are…well…unprincipled.

It was no surprise that the ship could encounter icebergs that night. They were going through an area known as Iceberg Alley. It was so named because…shock…there are icebergs there.

But the owners of the vessel put a lot of pressure on the crew to ensure they arrived on time. That would have all kinds of benefits for publicity and for making the passengers happy. There’s nothing wrong with good PR and customer satisfaction. But it is a problem when it’s done at the risk of safety of all those involved. Speed over safety is a principle that we’ve seen in all kinds of businesses from construction to transportation to manufacturing, and more.

On that cool evening, the Titanic received no fewer than 5 warning calls from other ships about icebergs ahead. However, the crew paid them little heed as they were busy helping wealthy passengers send messages to family/friends waiting for them in North America. Some of the wealthy passengers were paying or pressuring crew members to make this happen. So, they chose either self-interest or fear over duty and safety.

It’s easy to see how this could happen, in the moment, isn’t it? But here’s the thing. One’s commitment to principles is only revealed when it’s challenging to stick to them. If you cave, your commitment is weak. If you stick to them, your commitment is strong.

One other point is the conduct of those passengers. They believed that they were entitled, by weight of wealth, status or authority, to throw their weight around. To bribe or cajole. Their short term self interest induced them to pressure crew members to do the bidding of these passengers rather than do their jobs. Is that principled behaviour? Is it morally consistent?

As we’re seeing, there were a number of contributing factors to the sinking of the Titanic, but they were all human. In part, attention to short term self-interest rather than adherence to principles resulted in tragedy.

So, this week, my blogs will focus on just a few of the Profit, Principle and Personal Growth lessons that Philanthrepreneurs can draw from this story.

Today’s is about False Profits. (Pun intended.)

The Titanic was a big ship. It was a really big ship. And it was luxurious. Really luxurious. That meant it was costly to build and operate. Really costly.

So, as a good business owner with a business unit with defined physical limits of capacity, what do you do? Try to maximize that capacity, maximize revenues and minimize costs. BUT, you’d want to do this in a way that creates a sustainable business unit.

What did the owners of the Titanic do? They reduced water containment facilities far below than was recommended by engineers so they could make room for extra first class cabins. They used rivets that were of lower quality because they were of lower cost. When the accident happened, the rivets burst and water wasn’t contained.

That’s not the whole story behind the sinking. But these decisions were false economies. The objective of cutting costs is a good one. However, as we often see in politics as well as business, random, non-strategic, or across the board cost-cutting can be highly counter productive.

Don’t build your business so that it will stay afloat only under ideal conditions. Ensure that it can withstand a few bumps –even big ones – along the way. When cutting costs, don’t cut out something that you’ll need.

You never know where that next iceberg is.

1. A man is lost in the woods beneath a gray sky. He is fit and warmly dressed so he sets out to retrace his steps. After a day of walking he passes by a bush that seems eerily familiar. Then a rock that he vaguely recalls leaning against to take a break. He starts to despair. He realizes that for all his effort, energy and commitment, he has traveled nowhere.
Without assistance of some kind, people wandering in the woods do tend to walk in circles. They expend lots of effort and often perish without having ultimately moved very far at all.

2. Back in the mid 1770’s, a man named John Newton, among other things, worked in the slave trade. He had previously been on a war ship and attempted to desert. He was publicly flogged while lashed to the mast. He was demoted.

He then worked in the slave trade. In fact, he became the captain of his own ship working in the slave trade. After a near death experience at sea, he completely reformed his ways. He became an active abolitionist.

Somewhere between 1760 and 1770, John Newton penned a little ditty. You may have heard of it. It’s called “Amazing Grace.” It’s one of the most popular hymns of all time and became a spiritual for African Americans. A slave trader became an abolitionist and created one of the greatest anthems for African Americans.

3. Henry Ford: While Ford is today known for his innovative assembly line and American-made cars, he wasn’t an instant success. In fact, his early businesses failed. He basically went broke five time before he founded the successful Ford Motor Company

4. Walt Disney: He was fired by a newspaper editor. Why? Because, “he lacked imagination and had no good ideas.” He went out to start (and close) a number of businesses. He was repeatedly unsuccessful. He kept plugging along, however, and eventually found a recipe for success that worked.

What’s the point of all of this. How do these stories connect with walking around lost in the woods?

Notice the evolution of these stories. The man in the wilderness just kept wandering aimlessly in the woods until he could physically wander no more.

John Newton was spiritually and emotionally lost in the woods, until he made a conscious choice to change and selected a clear direction in which to change.

Henry Ford and Walt Disney toiled tripped and fell in the wilderness but they knew there was a way out, chose a very clear path out, (being entrepreneurship) and persisted along that path until they got out.

Everyone wanders around in some metaphorical wilderness. If there is any part of your life, your business that has a “Groundhog day” quality, then you’re walking around in the wilderness.

Oprah Winfrey once said “nothing happens until you decide” But the first step in deciding is knowing what you’re changing. So, take out a piece of paper. Close your eyes and think about that wilderness and what is it that’s keeping you there. Write that down on a piece of paper.

Now, don’t just set a goal; make a decision. What is going to be different starting right now for the rest of the year. What is the destination out of the wilderness. Commit to getting there.

If you do, you might find your amazing grace.