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BSBREL401A Establish networks
The
small
management SERIES
Establish networks
Small Business
T R A I N I N G
C E N T R E
The Small Business Training Specialists
Copyright
MINISTER FOR EMPLOYMENT, TRAINING AND FURTHER EDUCATION, acting through TAFE SA, Government of South Australia 2010
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We wish to acknowledge the help and advice provided by the Steering Committee for this project.
Len Alabaster
Alan Daniel
Elaine Egan
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This version of the materials is produced by the Small Business Training Centre, Adelaide City Campus under licence from TAFE frontiers as at January
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TAFE SA acknowledges the valuable contribution that the project team made to the development of this publication, and the contribution of others
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Guide
This publication has been developed in line with the National Training Package/curriculum for use within the learning programs of TAFE SA and is
based on a philosophy of flexibly delivered, competency based education and training.
Disclaimer
These training resources were prepared for use in conjunction with a formal training program for delivery in South Australia and were correct at
the time of preparation.
Published in 2002
Reprinted November 2005
Revised August 2010
Revised November 2010
ISBN 1-86506-694-X
BSBREL401A
Establish networks
Contents
About this resource
Introduction
What is networking?
The benefits of networking
Where to start your personal networks
Tapping into your networks
Chapter review
3
5
8
8
10
11
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13
14
17
18
21
22
23
23
25
26
27
29
29
32
34
35
37
37
41
43
45
45
47
48
Mentors
49
49
51
Conclusion
53
Additional resources
55
Feedback questionnaire
Introduction
This unit is about promoting your business using appropriate network strategies.
Networking is a pro-active way to dramatically expand your contacts and your
opportunities. It is an exciting and fun way to make friends, do business, gain work
opportunities, expand your personal skills indeed to help others whilst helping
yourself! It is the way of the future and a practice that is increasing every day.
All it takes is a good dose of confidence, some time, perhaps a few dollars and you
are on your way. Networking can change your life for the better. It doesnt matter
who you are or what you do, everyone can gain from what we all do naturally
communicate!
The purpose of this course is to shed light on how you can use the power of
networking to your own advantage and also that of others. It is a legitimate and
effective way to achieve win-win, mutually beneficial relationships that will result
in gains for all involved.
This course has been designed for people from all walks of life. Business people will
learn how to increase business and create new opportunities, people looking for
work can enhance their job search activities and everyone can expand their own
social, career or professional activities simply by using the concept of networking.
Many people are sometimes shy or lack confidence and are uneasy talking with
others about their own activities and needs. They often dont know how to
promote themselves and their business activities or to ask others to assist them
with information or contacts. And they certainly may not see that they have much
useful information to share with others. So this course will assist those people and
others who want to learn new and valuable skills about communicating and building
mutually beneficial relationships.
On completion of this course you should be able to:
What is networking?
This question has been asked many times. People say I hear networking mentioned,
but I dont know what it is.
In the past, the term networking has often been associated with the computer
industry, a network being the linking up of many individual computers within a
company to a mainframe master-brain computer system.
In recent times, there have been many types of networks established for different,
often specific purposes. Networks have sprung up to provide assistance and support
to people in certain commonly related areas like business networks, industry-specific
networks, public speaking and special interest networks, social networks, womens
or mens networks and so on. Sometimes networks are formed simply as a way for
people with common interests to get together on a regular basis. Clubs are another
form of networks. If you work in an organisation, you already have a large network
into which you can tap.
TAFE SA 2010, TAFE SA | Establish business networks The SMALL BUSINESS M A N A G E M E N T Series
Networking is about developing contacts with people with whom you can
build a rapport and who may provide information, leads, referrals, support and
encouragement if and when its needed. How reassuring and comforting this can
be! Of course, as a good networker you will be offering to do the same.
People do business with people they like and feel good about. Networking creates
opportunities to build on those relationships. This can then flow into business or job
opportunities, or an invitation to a function you may never have been able to access.
In a larger organisation, it can also help improve communication, reduce alienation
and maximise resources. Be aware though, that networking is not necessarily a shortterm immediate result activity. It is a long-term strategy building relationships with
people and therefore needs to be actively worked at.
We all know someone-who-knows-someone-who-knows-someone. Networking
can give this random knowledge a structure so that it becomes more effective and
efficient than when you rely on your memory or worse still, on someone elses. When
this structure is used effectively, youll start to create your own luck. Being in the
right place at the right time is often a result of good networking.
4 improved buying power to attract better deals both in business and socially
4 new or increased professional and personal opportunities
TAFE SA 2010, TAFE SA | Establish business networks The SMALL BUSINESS M A N A G E M E N T Series
The following case study is a true story illustrating the importance of networking
and of understanding what it is and how it may be of benefit.
Case study
An Australian woman who had lived overseas for 10 years, returned to Australia
to find work or to set up her own business within the specialised field of her
expertise. She had given up a well paid position in Europe to return to her native
country only to find work opportunities limited. For 2 years she attempted to
gain work believing her experience to be enough to secure a job. Meanwhile her
employer in Europe was tempting her to return there. She decided to return to
her well-paid European position and the knowledge of a secure future, although
not in the land of her choice. After a discussion about networking, she said
that her big regret was that she had not used this powerful tool to try to gain
employment here. Now it was too late. She had not really understood what
networking was all about and believed it to be using people for your own gain.
After discussions shed come to a different understanding about the importance
of using your networks. She said, If Id used my networks, which are quite
impressive and extensive, I know I could have gained work and recommenced
my career in my home country. Now its too late, my plane leaves next week!
This unhappy tale shows the misunderstandings many people have with regard to
networking.
Activity 1.1
Write notes about (or discuss with a partner) your understanding of the
concept of personal networking. Consider different aspects of your life,
including your personal and professional areas. Think about how networking
may benefit you in both these areas of your life.
Activity 1.2
If you think you have never networked before, take a large sheet of
paper and write down your immediate friends and family. Use big
sheets of paper, its amazing how the list grows! Or, start by thinking
of all the people youve spoken to during the past week.
Next to each name, write the name of another person they know or
you know through them.
Add names as you remember them. Keep coming back to this exercise,
youll remember people at the most peculiar of times! Surprise you
really have got a network after all!
Now write down what work the people on your lists do, or what
business or organisation they may be in, what their interests are, what
information they may know, indeed a short summary of what you
know about them. You never know when this may come in handy, if
not for you, then perhaps for someone else in your network.
Now start another list the same way, but of work or business associates.
Add your social contacts think of the people at your childs school
or kindergarten, the local tennis club, social group or church. Use any
association you like, the principle is the same.
TAFE SA 2010, TAFE SA | Establish business networks The SMALL BUSINESS M A N A G E M E N T Series
Look at your list of contacts from Activity 1.2 and choose those whose help you may
enlist. Remember asking for help acknowledges that the person is able to help.
This makes them feel valued another win-win!
Write down who you will talk to, what about, what you may want them to help
you with (be clear) and what you want to achieve. Keep a record of this and
follow it up. Enter the follow-up date in your diary.
4 Keeping a record
If you are looking for a job or trying to increase business, keep a database, either
on computer or on a card file, or just a list in an exercise book, but always keep a
record of whom you have spoken to, when, where, about what, what information
was obtained and when to follow up. Never underestimate the importance of
this. It is hard to remember things when youve spoken to many people and time
has passed by.
Mark time in your diary when to follow up your contacts and do it! If you let an
opportunity pass by it will. Good networkers are never without their diaries.
Dont commit things to memory. And look at it! Many people forget to look at
their diary and miss appointments or let people down. Make it a habit to look in
your diary last thing at night and first thing next morning. That way youll be able
to effectively plan your day and fulfil your commitments. For electronic diaries,
have a backup. A diary based on a computer is fine if you are in your workplace,
but is not effective if you have been to a function, met someone, made an
appointment and dont know if the date is available. This can be embarrassing.
A mobile diary is best.
When you have followed up the person, update those records on a regular basis.
Never trust your memory.
Activity 1.3
Build on your list from Activity 1.2 by developing a map of your immediate
contacts. Include your partner, family, friends, neighbours, social contacts,
work colleagues, people in the local community and so on. Again, consider
who they may know. Also think about your past contacts; jobs youve worked
in, people you studied with, played sport with.
Can you see your network building? How might this network assist you?
This activity will aid your assessment task.
Chapter review
This chapter examined the concept of networking and how it can be used for personal
and business success. You will have discovered your own extensive personal network
which will be useful for many purposes.
In the next chapter, you will learn techniques to network effectively, what to do to
build relationships and how to gather useful information to assist you develop a
valuable business tool your database.
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TAFE SA 2010, TAFE SA | Establish business networks The SMALL BUSINESS M A N A G E M E N T Series
11
Introducing yourself
You need to do this in a concise way that is interesting to the listener as this will
encourage them to ask questions. When you tell others what you do, they may one
day refer business to you. If you are in business, make sure you can describe what the
business is briefly about 10 words or less and dont waffle. The same applies when
telling people what you do. Waffle is unprofessional and doesnt inspire confidence in
you or your business. Practice creates confidence and you will feel more comfortable
if you have a sound knowledge of what you will say on these occasions.
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TAFE SA 2010, TAFE SA | Establish business networks The SMALL BUSINESS M A N A G E M E N T Series
Frame your description in terms of what your business does for its customer, the
benefits, rather than how you do it. For example, take Jason, who is a builder. When
he introduces himself, he describes himself and his business as we build dreams
more interesting than Im a builder. This style of introduction creates interest, sets
Jason apart from other builders and opens the path for questions.
Case study (Part C)
Jose is a natural health practitioner. He uses different techniques to alleviate
his clients conditions. He developed an introduction which spoke in terms of
the benefits his clients received from his services rather than how he did it. I
help people feel more energetic and healthy. This opens up the discussion as
the listener can easily ask How do you do that? A little more interesting than
Im a health practitioner. It is a closed statement that doesnt automatically
lead anywhere.
Activity 2.1
(a) Consider different areas of your life, for example, work, social,
relationships, interests and so on. What aspirations and goals do you
have in each of these? How might networking assist you to achieve
these? Develop a set of goals that involves networking in each of these
areas.
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Many people are by nature quite shy, so for them it can be difficult and uncomfortable
overcoming nervousness, especially on first occasions. If your confidence is a bit
shaky, take a deep breath and go forward. After all, what is the worst thing that can
happen! Perhaps telling the organiser of a function that it is your first visit might
help. They may find someone to introduce you to start the ball rolling. Or perhaps
you could find someone else to go with you to an event, just remember the reason
you are there to meet others. Dont stay comfortably talking all the time with your
new acquaintance or friend! Move on and meet new people.
Be an active participant
When you get there, participate actively in the event. Talk to people, ask questions,
tell people what you do using your practiced brief introduction speech. After the
event, follow up. Pick up the phone and call someone who has been recommended
to you. You never know where it might lead. Good networkers follow leads.
Remember attitude affects successful networking. If you are glum and withdrawn or
aloof and remote, your body language and posture reflects this. If you sit in a corner
looking forlorn and feeling pessimistic, you will only re-enforce your own negative
feelings and believe you shouldnt have attended at all! Others are not attracted to
negativity.
But if you are bright and smiling you will radiate confidence and optimism. People will
more easily be attracted to speak with you and you will leave a positive impression. If
you really dont feel that way then act it till you become it! Your mind doesnt know
the difference between reality and what you tell it. Remember, we all need to start
somewhere and even most high profile celebrities suffered from a dose of nerves.
Be kind to yourself. As you saw, setting goals is important but equally so are rewards. If
you have stretched yourself and built up enough courage to go to your first meeting,
give yourself a pat on the back. If you asked a question and/or met your target of
new contacts, then congratulate yourself again.
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TAFE SA 2010, TAFE SA | Establish business networks The SMALL BUSINESS M A N A G E M E N T Series
Activity 2.2
Using the following checklist, rate your networking skills. It is useful to identify
areas that could be improved and develop a strategy to do so. You could
discuss this in a group situation or with a colleague or friend and write up
a plan to improve your competence.
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