May 20 2009
How to develop a high value network
I frequently have people come up to me and tell me that I am a great networker. Especially in this economy people want pointers on how to build a high value network. As I have gotten older I have come to realize two profound truths: 1. who you know is as important as what you know and 2. it is better to be lucky than good. Like many things, networking is part art and part science. Some people (like myself) derive great pleasure from meeting new people and building new relationships. I estimate that I spend 10 – 20% of my time every week developing my network. Because I enjoy meeting interesting people I have no problem developing my network after hours and on weekend. Frankly it is one part of venture capital that I like the most. While personality traits do make a big difference in one’s ability to create a network, anyone who has basic social skills can build a network. Here are some general pointers:
- Decide why you want a network. I find people who just want to network with no purpose in mind to be annoying. Think about what common interest can link you together. Obviously networks can be for business, a hobby, social, non-profit, etc. The best networkers learn to develop overlapping networks – this way you can leverage your relationships for multiple purposes.
- Target your energy to people who fit your profile. If you are a serial entrepreneur who frequently needs angel investors then you may want to set your filters for people who do angel investing in the areas that you are likely to pursue. This is not suggest that you be rude to folks that don’t fit your filters but graciously move on as you may find a future need to connect to that person.
- Develop networks proactively. Networks take time and need to be nurtured. When you find someone who fits your target profile be sure to pursue them. Be persistent but not pushy. Follow up but don’t be presumptuous (i.e. don’t invite someone to a long fancy dinner as a follow up to a short conversation – try a phone call or a coffee instead). You will want to look for mutual benefit in the relationship in order to engage the other party in maintaining a two way relationship.
- Make networking fun. Though networking is a serious business tool, don’t make it drudgery. If you are not having fun then no one will want to hang with you. Think of it as a game – set goals for yourself (i.e. meet 1 new high value contact a week).
- Categorize your contacts. You can flag contacts in Outlook. I use such flags as CEO candidate, entrepreneur, angel investor, industry leader, etc. so I can search my contacts when I am trying to accomplish something.
- Cull your network. As you get more experienced in networking you will be able to upgrade your network so don’t be afraid to prune your network over time. Unfortunately we have limited time and mental capacity so even working smart there will be limits to how many relationships one can cultivate at a single time.
- Other tools. Beyond your own personal networks, I find leveraging shared backgrounds works well in connecting with people. In particular school affiliations (HBS alum) or previous employers (Bain & Co) are good basis for connections. I find LinkedIn to be a great way to find relevant contacts. I think Facebook, or possibly Twitter, can be valuable as well but I have yet to masдиваниter them.
I guarantee it will deliver highly valuable dividends if you define your purpose and commit to building your network. So go out there and have some fun meeting some interesting and relevant people.
