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MY OWN BIZ
A Guide for the Business Owner

Networking for Customer Growth

February 13, 2000

If you are like most small business owners, you are faced with trying to add more customers but have little advertising dollars to find them. A very inexpensive way to add customers is to network yourself and your business.

    • Join networking groups and trade associations
    • Attend trade shows
    • Refer work to other people
    • Network your existing customer base

Join networking groups and trade associations

One of the primary functions of networking groups and trade organizations is to help people grow their businesses. There are a few different groups to possibly join. First and foremost, you should join your local Chamber of Commerce. Most Chamber Groups have "mixers" where business people meet, make friends, discuss potential business and exchange business cards. At these mixers, be sure to find out about other networking mixers that are being sponsored by other groups that you might be able to attend.

Trade associations are another way you can get involved with other people in your industry to make new contacts and to learn what other events are happening so you can attend those as well. Business contacts with people in your same industry can be a source of excellent referrals. These contacts can refer you their overflow work or where your product or expertise can fill a need for one of their customers.

How you present and conduct yourself will weigh heavily on another person's judgement as to whether they will want to give you work or refer you work (customers). First impressions are lasting impressions. Ask yourself this, "To which company would I want to refer new customers to?" Your goal is to be the answer to this question. No one wants to have their reputation tarnished because of a "bad" referral. So impress them with your best.

Attend trade shows

Trade shows are excellent venues for meeting people who might have an interest in your services or products. If you don't want to get a booth or the cost of a booth is beyond your budget, attend the show as a visitor anyway armed with your business cards and brochures or flyers. Strike up a conversation with people looking at displays that you find interesting and meet new potential business contacts. After you meet these people, don't forget to exchange business cards, e-mail and web site addresses. BIG TIP: don't drop the ball here, make sure you send every single person you meet a follow up letter, e-mail, brochure that lets your new contact know what you do and that you are open to new business and if they are open to referrals and new business.

Refer other people new customers

One of the ways to get other people to refer you new customers is to refer them new customers. Reciprocation can be a very good source for new leads. If you help another business person make money, they will feel obligated to reciprocate the favor back to you. Business people usually won't bite the hand that is feeding them and they will refer new customers back to you.

Network your existing customer base

Your existing satisfied customer base is your most powerful tool for referrals. If they are happy with your service they will certainly tell other people about it. Offer incentives to your existing customers to refer new customers to you. Give discounts or coupons to both the existing customer for the referral and to the potentially new customer to try your products or services. With something to gain from the incentive, your customers will think of referring you first.
 

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