Networking groups fill niche for small businesses

The 20 people who gathered at the elegant Penn Club recently to discuss business came from a variety of industries and professions — law, high-tech, public relations, banking and more — and at first glance might have seemed to have little in common.

By Joyce Rosenberg
SMALL TALK

http://www.sltrib.com/2003/Dec/12282003/business/123658.asp

(We’ve had some excellent success during and after the 2003 Roundtables. If you have suggestions for speakers, topics, venues or changes to the process, please let me know so we can incorporate them in 2004. [email protected] Happy New Year to all. Russ)

But it actually was an easygoing — you could even say intimate — group. This was a meeting of the Business Development Network, an 11-year-old networking group that brings together company owners and executives who are in search of new business and the camaraderie, wisdom and advice of other business people.

The Business Development Network is one of thousands of such groups across the country. They have become more popular as business owners realize that the way to build a company is by making meaningful relationships and contacts.

Networking groups vary in size and membership; some appeal to specific industry groups, or are set up for women or minorities. They also have variations in their overall agendas — some require their members to bring in a minimum number of referrals for fellow business owners, while others have no such requirement.

It was clear from the meeting of the Business Development Network that members believe in the power of networking.

"I can never underestimate the value of turning to colleagues in this group to help with my business," said David Grant, president of LVM Group, a public relations firm, who has been with the networking group for about seven years.

Meetings of the Business Development Network are designed to educate business owners and executives about the needs of fellow members’ companies. Each session includes what the group calls a member spotlight — a presentation by a member describing his or her company, what kind of business it is, and what it can do for customers.

At the group’s recent meeting, Scott Farrara talked about the firm where he works, Real Time Services, and explained how the multimedia consulting firm can quickly equip a customer’s conference room for a meeting or presentation.

"A room like this could go for anywhere from $80,000 to $100,000," he said.

Members took notes and had questions for Farrara: "Who do you want us to look for?" "Do you do rentals as well?"

But much of the networking actually goes on outside of the bimonthly gatherings. The members took time during the meeting to publicly thank others for one-on-one contacts — lunches and phone conversations, as well as house calls, which are visits to each other’s companies to help them learn more about how to help one another. There were many thank yous for help, advice and support.

Sometimes members bring guests; it’s another opportunity for the owners and executives to expand their list of contacts.

Toward the end of the meeting, members talked about why they were in a networking group. Of course they were there in hopes of getting leads for new business, but several said they also got many side benefits. Farrara said fellow members helped him make the decision to leave his last job and move to Real Time.

Lisa Aldisert, president of Pharos Alliance, a consulting firm, said networking helps fill a vacuum that many small business owners can find themselves in.

"Being in a group like this takes away the isolation some of us feel," she said.

Ivy Menchel, who works for J.P. Morgan Chase, said, "It helps me keep abreast of what’s happening in other industries."

In interviews after the meeting, members talked about how valuable networking has been to them in generating revenue.
Arthur Levin, president of AGL Associates, a law firm consultancy, said "almost all of my business comes from networking in one way or another."

Levin said he has belonged to more than one group at a time, and that networking has helped him find resources for his clients as well as bring in new business for his own company. He has been with the Business Development Network for 10 years.

In a year and a half in the group, travel agent Jill Kabat has had "some referrals and I’ve had some opportunities in the network, and a number of the network people have purchased tickets from us." Kabat, vice president of All Nations Tours, said this group works for her because its members understand the needs of medium-sized businesses like hers.

Kabat, who has been with other networking groups in the past, said business owners need to find groups that will be a good fit for them. Group size, the kinds of industries represented and the chemistry among the members are among the factors that should be considered during a networking search.

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Joyce Rosenberg writes about small business for The Associated Press.

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