As our nation continues its long road back to full economic recovery, small businesses remain the driving engine for future revenue and growth. With the bulk of economic issues now in the rearview mirror, it is a good time for small business owners to consider ways to obtain new customers and maintain a steady stream of new business in the pipeline. Networking is an ideal way to spread awareness of your small business among prospects.
Smart Business spoke to James Terrell, senior vice president, small business, Comerica Bank, about how to effectively network your business in today’s economy.
What is the best way to generate new business today?
The single greatest way to network and generate new business is through word-of-mouth referrals. Seek out a client base within your community, be it ethnic, religious, socioeconomic or simply local. Referrals made within tight-knit communities can be the foundation of a very lucrative business, so make sure associates in your personal life know what it is you do, the services you provide and about your successful track record. Something as simple as creating a flier to hand out at your next PTA meeting or offering up your services at a school raffle is an excellent way to create name recognition within your community.
Establishing a new small business in a small community is challenging. I have many clients who have used word-of-mouth marketing to get their foot in the door locally, which ultimately led to larger companies and clients recognizing their value.
An excellent way to assure positive word-of-mouth referrals is to overserve your current clients. By assuring your current clients are happy, you can ensure their positive endorsement within their business circles.
What are some other ways to network?
Join an organization. Professional organizations like your local Chamber of Commerce or Rotary Club are excellent platforms for networking. You will meet other businesspeople this way, but the setting is typically more casual so you are able to establish personal relationships while broadening your network of business associates.
Volunteer organizations are also excellent sources to meet civic leaders while helping promote your community’s health at the same time. Be it a religious group, women’s group or organization like the YMCA, there are a variety of outlets in your area which focus on giving back. Becoming involved is a great way to network and learn about the areas through which your business can give back, as well.
Go online. Social networking sites, such as Facebook, LinkedIn and Twitter, are great tools to get your name out there, and they are free. Like any form of marketing, know your audience and market yourself to appropriate people. For example, if you decided to join Twitter, post updates about your sale of the day. If you own a small bakery, post promotions like ‘2 dozen cookies for $12.99 today.’ Link to other like-minded online groups to increase your fan base and client base.
Another useful aspect of online social networking sites like Facebook is that they offer the ability to send invitations to fans and friends of your profile. Create business events or in-store events and invite your online friends to come by for a discounted product or service. The added plus is that you avoid the need and cost of printing actual invitations and your guest list is easily stored on your computer. Your entire RSVP list can be maintained on the Web site, as well, so planning a monthly event is much easier than if you had to do it all by hand.
