The Fives Steps to Nurture Your Economy — Step #2

Here are the five steps, with the bold step being the subject of the article below:

1. Create and Implement a Business Retention Program
2. Create Opportunities for Networking
3. Develop Support Systems
4. Promote your Offerings/talk about it
5. Get out of the way

I was once asked what is the pure essence of economic development, and could I explain it in one or two sentences. I thought about it and very quickly I said I could describe it in two words: “making friends” or if you prefer, “building relationships”. Isn’t that what all business is about? Building relationships and making friends?

Some retailers even refer to their customers as family. Many consultants and advisors would go so far as to suggest the family label as a strategy.

No one wants to do business with someone they don’t like. Everyone wants to like their suppliers, vendors, and service providers. I have found that it is not too often that people do business with their enemies.

It is also true that it is harder and more costly to obtain a new client or customer than it does to retains loyal existing ones. So how does this pertain to economic development and networking?

Making friends and developing relationships is the key to good sales and good economic development. Without your friends, you will obviously get absolutely nowhere.

Another obvious statement for the audience: I have found over the years that in order to have a successful economic development program that adequate funding must be in place.

As rudimentary as that sounds, it is a key and essential point. You need money to do your job and the only way you can do that is to build relationships with those entities or businesses that are going to fund you. This obviously means that you must have relationships and build your eternal network so that you have the capacity to build relationships with everyone else.

Those other relationships are those that would invest in your community. If you are following this series that means real estate brokers, bankers, construction firms, and the actual businesses in your community that has the capacity to grow, expand and create jobs. You know, your rank-and-file entrepreneurial companies, manufacturing firms, and small businesses that have been in your community forever, and yes even out-of-town site selectors (that last one was hard for me to write).

So how do you do it? I really feel odd writing this because almost the entirety of the universe of business books written about marketing and sales cover this. Also, there are many who have gone before me who are far more knowledgeable than I am about networking. A quick survey of economic development and sales contacts on LinkedIn provided these juicy tidbits:

1. Show up where you are least expected. — For years I and one other economic developer were the only people who showed up at a professional real estate luncheon held once a month in Chicago. While it was open to economic developers, many found it troublesome or bothersome to attend. Needless to say, I and the other fella got all the attention. This helped when it came time to promote the community and region.
2. Use a Tidbit and Connect — When you meet someone at an event and they tell you something interesting about themselves, their business, or their story, use this tidbit immediately thereafter. Look them up on Facebook or LinkedIn and mention your conversation and compliment them on the “tidbit” or “nugget” they gave you. This does two things: First, it shows that you were listening and interested in their story, second it now establishes a non-aggressive social media relationship with them that you can use at a later time.
3. Set goals for meeting people. I have a strategy that I use whenever I enter an event or room where networking is going to take place. It doesn’t matter if it is local (where I am more likely to know more people) or a new event or function I have never attended. I give myself a goal of meeting five new people. I keep score by having to collect five business cards from someone I didn’t know before. There are a lot of nuances to this strategy, which I can share at a later time but suffice to say, this has always given me an opportunity to meet many new people. At a local or familiar event, I will complete this endeavor before I start chatting with others I already know.
4. The Referal Call. This is similar to the strategy above but slightly different. Pick ten people off your “friend’s list” and give them a call. The conversation will go something like this:

ME: “Hey Mary, Me here, how ‘ya doin?

MARY: I’m fine, how are you.

ME: Do you have a couple of minutes?

MARY: Sure, what is going on?

ME: “Excellent, listen I won’t take up too much of your time but I’m calling existing investors and friends to see how business is going, what you might need in assistance from me, and basically see if there is anything I can do for you right now?”

MARY: “Well, there is something…(conversation ensues regarding the above topic wherein you may end up listening to concerns or end up doing something specific…or alternatively, she may have nothing for you, but will certainly appreciate the call)

ME: I will get on that right away, Mary. One more thing, if you don’t mind me asking. I‘m looking to expand our base and meet new businesses we might be able to assist and even bring on as an investor like you are. Can you think of a business or someone I might not know that you are doing business with? If you have someone now that would be great, I just need their email or the phone number, and if you don’t mind when I reach out to him/her can I mention your name?

MARY: Sure you can, no problem. I will give it some thought and send you something today.

The most important thing about the call is to not let Mary not give you the referral. Follow up with Mary no later than three days after your call. Business owners and executives are busy and while they mean well, they often forget. I gentle reminder (I even call it that in the email…(”gentle reminder”) can let Mary know that you are an astute executive who means business.

There are many variations to this call. This conversation could happen when meeting Mary at a social event or in another meeting. You can use it as your small talk. However, don’t go overboard with this one as you don’t want to be seen as the person who is always selling (even though in some sense you are).

These are just three and I indicated earlier there are many books and articles written that talk about variations on this theme, and you can certainly go to those sources to find more to adapt to your situation.

You are the chief salesperson for your community, and the entire community is your product. You must know it well, you must sell the community well and you must create opportunities to be successful. The best way to do that is to be everyone’s friend and to be the positive driving force.