It's Who You Know
If you really know how to work your connections, a successful startup is less than 6 degrees away.
URL:
http://www.entrepreneur.com/startingabusiness/startupbasics/findinghelp/article80950.html
The saying goes that every person on earth is separated from
every other person by only six degrees. That means your
friend's brother's nephew's wife could know Michael
Dell, Donald Trump or Martha Stewart. You could conceivably be only
a few networking steps away from someone who could help you get
your business off the ground--be it an industry contact, a top
lawyer or a state government official. You've heard all about
the importance of networking, but what about harvesting your own
network to uncover someone who just might be able to get you in
touch with a stellar business contact? That's six-degree
networking.
Even if you don't think you know someone who can help,
you'd be surprised. What about an old schoolmate you send
holiday cards to? Who might she know? Or could your softball
teammate have a brother in the same industry in which you hope to
hang your shingle?
Perhaps the biggest benefit of using the "six degrees of
separation" method is that you have an "in" with
this new person. Since your friend of a friend is opening the door,
you're not exactly a stranger. "The whole key to six
degrees is you're coming with a reference; you're not cold
calling," says Keith Ferrazzi, author of Never Eat Alone: And Other Secrets to Success, One Relationship
at a Time and CEO of Ferrazzi Greenlight, a marketing and sales
consulting and training firm in Los Angeles. "You're
coming with a warm lead, so to speak."
A Friend of a Friend
A warm lead is exactly how Paul Taylor found someone who could help
him get his specialty clothing business off the ground. Taylor, 36,
had been working as an arborist and found that his work clothing
wasn't as practical for tending trees as he would've liked.
He wanted to combine the durability of a canvas work pant with the
agility and great fit of a rock-climbing pant--so in 1997, he
launched Arborwear LLC from his parents' Cleveland-area
home.
Like any entrepreneur excited about a new idea, Taylor was
talking about the venture one day with a friend who was also an
arborist. This friend happened to have a friend whose sister worked
in a New York City fashion enterprise. Taylor called that friend of
a friend, who then introduced Taylor to his fashion-industry
sister. "I called her, and I ran the whole idea by her. She
didn't know anything about chain saws or tree work or
arborists, but she said, 'The key to it is that you have a
niche, and that's really the only place you can ever hope to
get started,'" recalls Taylor. "I wound up going to
New York City and meeting [this contact]. She loaned me a cell
phone and gave me this list of people to see about
fabric."
Taylor's fashion-industry contact was so helpful and
encouraging, in fact, that he credits her with helping him launch
his business. "She gave me confidence that this was a good
idea--and she gave me a push in the right direction," he
says.
Sincerity is the key to making the six-degree method of
networking work for you, according to experts. If you go to people
thinking only about what's in it for you, you'll turn off a
lot of potential contacts. "As you approach these individuals,
be sure you've clearly defined what you can do for them,"
says Ferrazzi. "Generosity is the [key] to your success with
relationships. Defining what currency you have--what you can do for
others-is crucial."
If you can bring something to the table, do it. If you
can't, as was the case with Taylor and the fashion-industry
contact, display complete humility, and be genuine in your
communication with contacts. Says Taylor, "The thing that
helped me most was that I never lied, [though] I always tried to
sound like I knew what I was talking about. I really found that
people bent over backward to help me."
To get started, plumb your expertise, and look for things to
offer. Taylor, for instance, was able to barter his tree-removal
services with a lawyer he met through another friend--he got legal
services to help set up his business, and the lawyer got a problem
tree removed from his property. Cultivating contacts has paid off
for Taylor, whose $1.5-million business now sells its Arborwear
line of specialty climbing and outdoor-work clothing online. The
company's line of pants, shirts, T-shirts, belts and hats is
also sold through retailers such as REI nationwide.
The seeds of your six-degree network can grow in the most
unlikely places. You might sit next to someone on an airplane, or
be chatting with someone as you wait for an elevator, when business
kismet strikes--so be sure to bring your game face with you
wherever you go. "Every interaction with anybody counts
because it reflects on your brand," says Alaina G. Levine,
president of Quantum Success Solutions, a Tucson, Arizona, company
that provides expertise on topics such as PR, personal branding and
marketing.
Kaz Kihara always had his business idea in the back of his head.
While working for a CPA firm in the late 1990s, he was attending
night school and started chatting with one of his classmates. The
two struck up a friendly rapport, and Kihara learned his classmate
was the chief information officer for an $80-million company in the
medical services industry. In 1999, when Kihara decided to start
Premier Data Technology Inc., a Torrance, California, provider of
IT services to small and midsize companies, this high-level
executive hooked him up with a former colleague--who became one of
Kihara's first and largest clients.
Keeping his six-degree network of contacts in mind at all times,
Kihara regularly calls his contacts socially--not always with a
specific business goal in mind, but to keep those lines of
communication open. "While I'm driving in my car, I call
my clients, friends, ex-employees, just to see how everything's
going," says Kihara, 35.
And just like the experts suggest, he approaches contacts with
ways of helping their businesses. Says Kihara, "I try not to
do it too aggressively--I usually try to know the person or help
that person in their business or personally. How can I help them so
that they might want to help me out?"
There's one definite no-no of the six-degree system:
Don't be too pushy or aggressive when pursuing your leads. And
don't rush a connection too quickly, says Steve Harper, author
of The Ripple Effect: Maximizing the Power of Relationships for
Your Life and Business. "If person A can get you
aligned with person B, but you don't have enough rapport built
up with person A, you have a tendency to really burn a
bridge," he says. "You [can] make people feel used and
seedy in the process [by] leapfrogging them. It's really
important to let everybody know that they're individually
important in the process--and give the proper credit to person A
for opening that door of opportunity." You can do that by
following up with a thank you, he notes.
Ever appreciative of his business relationships, Kihara's
company grew to a second location in Las Vegas in May thanks to
six-degree networking. He is currently establishing and building
relationships in Asia with hopes of bringing his services to the
Japanese market, which will likely push sales past the 2005
projections of more than $2.4 million.
Proactive Network
Consider the biblical adage "seek, and ye shall find"
when it comes to six-degree networking. As Ferrazzi notes, you have
to be proactive when employing this approach during startup. First,
you must decide exactly what type of startup help you need: Are you
looking for someone to help finance your business? A mentor to
teach you about your industry? A source of great employees?
"Once you identify what you want to achieve, you can
specifically target the individuals you need to associate with to
achieve [your] goals," says Ferrazzi. "Some are going to
be prospective clients, community leaders, influencers,
etc."
That kind of preparation is precisely what helped Cindy Page
build her Blockhead Bath line of bath and body products. When
she launched her company in 2002, she needed help determining her
company name in addition to general information about the bath and
body industry. A former assistant buyer for Filene's, Page knew
a vendor who referred her to a friend who worked in marketing for a
large bath and body manufacturer--and she was able to glean a lot
of industry knowledge from that contact. "When I talked to
that person, I really made sure I had a goal in mind and the kinds
of questions I wanted to ask [all prepared]," says Page, 35.
"I made sure I did my homework."
Do your homework, and don't be afraid to ask politely for
what you need. But, Ferrazzi cautions: "You've got to make
sure the intimacy you have with them is commensurate with the
request." There's a fine line between being proactive and
being aggressive, but experts agree that many people are willing to
help if you approach them in a positive, "what can I do for
you" kind of way.
It's really just being brave enough to open your mouth about
your business. Says Page, "I tapped into every friend, every
trusted colleague, every business associate." A friend of a
former co-worker, for instance, was organizing a Ronald McDonald
House fund-raising event; thanks to that connection, the organizer
tapped Blockhead Bath to donate to the silent auction-a social coup
and a brand boost. Page was also invited to participate in a sales
event at an arts fair in Chicago when a friend of hers, who went to
college with the person who ran the fair, put in a good word. The
real-life implication of such relationships is clear: Page has seen
her company's 2005 sales approach $500,000, and her company
currently sells its products online at www.blockheadbath.com and at the Amazon.com Beauty store. Says
Page, "People like to do business with people they know, and
they like to help people they know-or kind of know."
It would seem that using your six-degree network of contacts is
not only smart for business, it's essential. "It's
amazing to think that we are connected to every other person on the
planet by only six steps, which means there are unlimited business
opportunities out there," says Levine.
And if you've learned anything, it's that this isn't
just an easy, one-time gig. It's important to keep your
six-degree network thriving as you grow your business.
"It's a never-ending process. It isn't just going to
events and collecting business cards--it's about finding people
you can build something with and cultivate a relationship
[with]," says Harper. "It's a lot of hard work to
build that trust and rapport, but you'll be rewarded handsomely
because you're willing to put the time and effort into
it." Cultivating your six-degree network is a deliberate and
valuable act, so tend to it as you would a garden, and watch the
business opportunities grow.
6 Ways to Start 6-degree Networking
Right Now
Ready to build and cultivate your own connections? These six action
steps will help you get your six-degree network up and running:
- 1. Make a list of the 250 people most important to you.
Keith Ferrazzi, CEO of Ferrazzi Greenlight, a marketing and sales
consulting and training firm in Los Angeles, suggests you consider
business leaders, community leaders, friends and family--basically
anyone who can help you and to whom you might have something to
offer. Start cultivating those relationships.
- 2. Become a master at relationships. It's not just
about picking up the phone; it's about creating long-term
connections and developing a real rapport. Ferrazzi says to
remember things like your contacts' birthdays and favorite
hobbies.
- 3. Join business and social groups. Start attending
meetings, luncheons, mixers, whatever--anything that will build
your contact list. "As you grow [your] business, your
circle--your network- should grow as well," says Zoe
Alexander, networking expert and founder of Divas Who Dine
LLC, a women's business networking group in New York
City.
- 4. Assess your attributes. Clearly define what you can
bring to the table for all your new contacts. The more you bring to
the party, the more willing people will be to help you, Alexander
points out.
- 5. Engage in conversations. No matter where you are,
start talking with your seatmate or line buddy. Ask questions about
their business or industry and talk a bit about yours, Levine
suggests. You'll get ideas, inspiration and, if you're
lucky, a really good six-degree contact.
- 6. Bone up on current events. "Leaders are
readers," says Steve Harper, author of The Ripple Effect:
Maximizing the Power of Relationships for Your Life and Business.
To be relevant to your desired contacts, you've got to stay
abreast of news, happenings and the like. Doing so will also give
you good conversation-starters for any networking situation.
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