Opinions expressed by Entrepreneur contributors are their own.
You started your business to control your financial destiny. Butwhat do you do when you're blindsided by a crisis thatthreatens your company's very survival? Do you know people youcan call at 2 a.m. who would be willing--and able--to bail youout?
"If I ever needed cash in the middle of thenight--let's say $50,000 at 2 o'clock in the morning--Ihave certain contacts I could use in an emergency," says RandStagen, 28, founder and publisher of The Met magazine, aDallas publication that covers the local entertainment andnight-life scene. "Every entrepreneur needs at least one[person they can go to in an emergency], because you never know.What if your business is about to bounce payroll and you have notraditional resources to go to?"
While you hope you'll never need to call anyone in themiddle of the night and ask for fast cash, how do you go aboutestablishing those kinds of relationships--just in case? Stagensays there are three steps:
Be Proactive
"I am very focused on cultivating relationships thataren't necessary for the short term, but might be necessary forthe long term," says Stagen. It's this approach tonetworking that Stagen says is responsible for his success. In thefive years since starting his company at age 23, he's gonethrough four rounds of financing. "It just took a lot moremoney than I thought," he admits. But for each round, he wasable to tap into his network and find private investors willing topump in the cash required to get his publishing company off theground and grow it into a $2.5 million enterprise.
Keep In Touch
People help people they know very well. That's why Stagensuggests one way to start building relationships with key contactsis by sending them personal notes. "You hear it over and overagain, `Oh, it can't be that easy!' But writing a personalnote is simply the best networking tool I've used," hecontends.
What should you say in the note? Keep it simple, advises Stagen.If you've met someone for the first time at a networking event,for example, say something like: "I really appreciated meetingyou. I look forward to talking with you in the future." Shortnotes are stepping-stones to long-term relationships with keycontacts.
Build on the relationship, Stagen says, by sending articles orinformation that may interest key contacts. "This way,you're cementing that there is a relationship there and thatyou care about their success," he says. Over time, key peoplein your network will grow to care about yoursuccess--perhaps enough to help you in the middle of the night, ifneed be.
Make Deposits
Want people to be there for you in a crisis? Then be there forthem today. For Stagen, this means doing favors for local nightclubowners. "Guys will come up to me and say `Hey, Rand, I'mstarting a new club and I really need some contacts.' I givethem the names, and down the road, I may need something fromthem," says Stagen.
In addition to passing along referrals, Stagen says, another wayto strengthen relationships is by entertaining. "One thingthat makes a great impression is to have a dinner party at yourhome, which very few people do these days," he observes."What impacts those 2 a.m. relationships is doing somethingunique--something that represents the kind of business you have orthe kind of person you are. [For example,] if you manufacturewidgets, you could host a dinner party at your [manufacturing]facility or in your warehouse."
No entrepreneur is immune to crises. Protect your business dreamby building a strong network. That way, you gain peace of mindknowing that, when tough times hit (and they will), you've gotpeople you can turn to for help.
Work It Out
So you're not a natural schmoozer? Then maybe it's timeyou got in the mood before your next networking opportunity. Trythese books:
- Dig Your Well Before You're ThirstybyHarvey Mackay (Doubleday, $24.95, 800-323-9872)
- The Secrets of Savvy Networking:How to Makethe Best Connections for Business and Personal Success by SusanRoane (Warner Books, $13.99, 800-759-0190)
Sean M. Lyden (seanlyden@mindspring.com) isthe principal and senior writer of The Professional Writing FirmInc., a Kennesaw, Georgia, company specializing in ghostwritingarticles on behalf of multimillion-dollar consulting and advisoryfirms. Lyden writes frequently on motivation, management andmarketing issues.
Contact Sources
The Met, (214) 744-2600, ext. 115, rstagen@themet.net
What psychological obstacles to success are you trying toovercome? Tell us at bsumag@entrepreneurmag.com.
