Networking – is it in your marketing budget, or treated as a ‘must-do’ in your sales strategy?

Recently I worked through a small business client’s marketing budget, and persuaded them to include the costs of attending networking events – despite being met with the challenge that, “I go, but it’s not marketing really!” So then, how should you budget for it? Is there a budget for your sales strategy?

The networking game is a long standing business tradition, where events are created and scheduled to bring the 'right' people together. Organisers have to make a return for an event format to survive. For attendees, it's an opportunity to meet new business contacts, yet most are polite enough to know you can't turn up and expect immediate sales. Common courtesy means asking about what others are looking for, way before you mention your own services. This softer approach makes me consider networking as an essential marketing activity, to be planned, costed and measured in the marketing budget. Or, is it simply a core part of a small business sales strategy to get out and meet others?

For me, the approach to networking feels like a marketing process; I fix a set of events into a calendar, and add the costs into the budget for the year. Once they’re in the plan, it indicates a level of commitment to going, and a goal to either raise the company profile or generate some enquiries.

Bristol is a great place for networking events – a hub of creative, yet entrepreneurial talents, and plenty of locations to choose from. This year, I personally made plans to go to a diverse range of events, like the monthly Freelance Mum, the Big Breakfast over at Bristol and Bath Science Park, and the wonderful Bristol Post/Bath Chronicle South West Women In Business Awards. Coming up is the Business Showcase at Ashton Gate, where I’m looking forward to hearing The Entrepreneur’s Godmother, Alison Edgar’s talk, and joining in the mini workshops. I also participate in online networking, run using Facebook or LinkedIn groups.

So, if it’s handled as a marketing cost, what helps small businesses choose their networking wisely?

Consider WHERE – I look at the location: how big is the event, and where is it taking place? I prefer joining smaller groups. However, if it’s at a venue I’m curious to visit, or a location where my audience goes, I’ll attend.

WHEN it fits in your diary – Timing is crucial to get high enough numbers, and the right types of businesses to come along. Hosts often time them around core working hours, so many events are held early, or lunchtime, or late in the afternoon. Frankly, I fear these timings mean we all squeeze more into our working days! Yet to create a more relaxed networking environment, evenings do work very well.

WHO do you want to meet – Before going, I research who else will be there, based on the title or presenters who are speaking. What does your ideal new contact look like?

I like to meet small businesses, who appreciate how they can use more customer case studies in their marketing – across their blogs, web content, press releases and social media posts.  The types of small business I work with are technically brilliant, their business customers love their products and services. However, they are somehow reserved about telling the world, or simply don't have time to write.

WHY is that event right for your business – Personally, I go along to events to learn, and asking questions helps me make plenty of contacts. I love meeting people and hearing about their business. Usually, because it’s Bristol, I’m swapping stories of people we know in common too. As goodwill grows, recommendations flow; what more powerful marketing can you get?

Networking events take significant time out of busy schedules. And short-term benefits can be tricky to measure, which is why I believe small businesses should keep ‘networking’ in their marketing budget. This helps the business prepare and plan for those costs, to aim for a return over a longer time. 

So, why do many businesses treat networking as a direct sales activity? When asking Alison for her views, it was a clear response: because it is sales!

“The fundamental of sales is, people buy people. So, the easiest way to build a relationship, and get people to "buy you" is face to face. Great sales comes from four things, understanding behaviours, knowing the sales process, having a strategy, and, confidence and belief in yourself, and your product.

Networking must have a purpose and an output, but lots of people continue to network without direction or strategy. This is why they perceive it as a marketing cost - because they get no return for their time.

In my course, Easy Peasy Sales, we teach small businesses a strong networking strategy called "Snog, Marry, Avoid" which is not only fun, it gives nervous networkers confidence to use their time efficiently.” 

Naturally, we both agree on one thing, networking must be on the list for every small business. Start the same as with any marketing activity, by focusing first on who you want to meet – and how and where to find them. Plan it properly, and it will lead to sales.

So I’d conclude in the case of small businesses, there’s no need to separate networking out between sales and marketing, because you’ll be working with a single set of business objectives, and one budget.

Where possible, use your instincts for the short term measures. What did I learn, which contacts felt like a genuine connection, how helpful was the conversation to the other person, and when will I see or hear from them again? Then save the hard return-on-investment measures for weeks, or even months after the event.

If you’re in Bristol, I look forward to meeting you, and hearing your story sometime.