7 Ways That Networking Can Take Your Startup to the Next Level

Source: Neil Patel

Does any of this sound familiar?

You had a brilliant business idea.

You spent some quality time crafting a business plan and validating your idea.

You marketed your business the best ways you knew how.

You may have even gained some traction.

Then, you didn’t know what to do next.

How do you take your startup to the next level?

I’ll be honest. Scaling your business from startup status is insanely difficult.

It’s the reason why 95% of startups fall short of meeting their projections.

I have some good news.

You can escape this bleak fate, and I’ll show you how.

Have you ever heard of the “64/4 rule?”

The rule states that 64% of effects come from 4% of causes.

In other words, many of the activities that you spend your time on are useless.

On the bright side, there are high-impact activities that can make all the difference for your business.

Your task is to pinpoint what those activities are, so you can reap the rewards.

The great news?

I’ve already identified for you what one of these high-impact activities is.

How can I be sure that it will work for you?

All the startups that succeed have this one thing in common.

Networking.

That’s right.

All successful startups forged meaningful relationships, which allowed for a fast and sustainable path to success.

If you’re interested in doing the same, this article is for you.

I’ll share with you seven ways networking can ramp up your business.

We’ll also get into how you can tailor your networking efforts for each goal.

But first, let’s define networking.

What is networking?

Some people think networking is handing out business cards and going to lunch with business friends.

While that may be part of it, that’s not nearly the whole story.

At its core, networking is about building relationships.

It’s about getting people to know, trust, and want to do business with you.

The personal and professional connections that you forge can be leveraged to boost your business exponentially.

This can happen through both online and offline channels. In fact, the two channels are more connected than you may think.

Here’s a chart illustrating how online and offline marketing activities are aligned:

What are some activities that may be considered networking?

• Join social media groups.
• Go to industry events.
• Become part of a coworking space.
• Go to in-person business meetings and conferences.
• Partner with online influencers.

These are just a few ideas that we’ll explore later.

But let’s get into the one thing that every networking strategy needs to thrive.

It doesn’t matter whether you’ll be networking online or face-to-face.

It doesn’t matter what relationships you’re trying to forge or what business objectives that you have.

If you don’t have a compelling story to tell, you’ll be shooting blanks when it comes to communicating with your targets.

Why is your story so important?

• Stories are the fast-lane to the brain.
• Stories highlight purpose and move masses of people to action.
• Stories make you more relatable by providing context about your business.
• Stories are the most powerful sales tool.

It’s why after presentations, 63% of people remember stories and only 5% remember statistics.

How can you leverage storytelling to amplify your networking efforts?

It’s not about creating one elevator pitch that you recite to everyone that you meet.

Ideally, you should craft multiple stories.

Your core brand message should be a common theme in all these narratives.

Make sense?

Here’s a roadmap:

I’ll break this down for you.

Step #1: Get your story straight.

You first need to reflect and build on your brand narrative.

What do you want the world to know about your business?

Park Howell recommends using this story cycle:

Here are some of the core elements.

• Backstory: What’s your unique value proposition?
• Hero: Who’s the hero of your story? What does your hero want? (Hint: Your hero should be whomever your ideal audience is.)
• Antagonist: What objections does your hero have to your brand?

• Mentor: How will your business help your hero on their path to transformation?
• Journey: What does your customer journey look like?
• Victory: At what point does your hero win with your business?
• Moral: What are your brand values and culture?

Step #2: Learn to tell your story well.

Having a story is not enough.

You need to tell it in such a way that your audience is compelled to listen.

A big part of that is getting to know who will be at the receiving end of your story.

If you’re targeting prospective customers, get to know what moves them.
If you’re speaking to potential influencers, do your research.

You will need this context to deliver your brand story for maximum impact.

Step #3: Don’t neglect the data.

Here’s the thing.

There is a narrative in the numbers too.

It’s important that you use data and facts to substantiate your story.

Why?

Data-driven stories sell.

In fact, data-driven marketing has increased revenue for 57% of marketers.

Now that you’re armed with a compelling business story, let’s get into what networking can do for your startup.

1. Networking will give you more leverage with investors

I’m sure you’ve heard this saying.

“Cash is oxygen to a business.”

In other words, nothing will suffocate your business quicker than a lack of money.

Out of the top 20 reasons startups fail, a shortage of cash ranks as number two.

That’s why investors are the lifeline for many startups.

Think about this.

Investors get many emails from entrepreneurs asking for money. Every one of them promises a quick return on investment.

How many of these businesses do you think deliver?

Considering that 80% of startups fail to see projected return on investment, I’d say not many.

A big part of that failure to deliver is poor financial management.

Here’s the proof:

But what if you had more leverage?

That’s where networking comes in.

The better quality connections that you have, the easier it is to entice investors to put money behind your startup.

Here are some tips for using networking to land investors.

1. Make your contacts count. Don’t be afraid to ask your network to connect you to potential investors.

Let everyone know that you’re planning to scale up your business, and you’re looking for funding.

2. Avoid too much “sales speak.” While money is your objective, people hate being sold to.

That includes investors.

Start the conversation with what you bring to the table. That’s where it helps to mention all your impressive contacts.

3. Leverage your personal network to power crowdfunding campaigns. Crowdfunding has gained significant momentum in recent years.

You’d be amazed at the number of your friends and family who’d be willing to back you up financially.

2. Networking will set you apart from your competitors

I don’t have to tell you how competitive entrepreneurship is.

A decent percentage of businesses fail, because they can’t measure up to the market leaders.

As you can see, out of the top 20 reasons startups fail, competition is number four.

How do you ensure that you don’t get crushed by your competitors?

It’s all about differentiation.

Networking grants you exposure for the things that set you apart from your competitors.

These are what you refer to as your “x-factors.”

• Your brand story
• Your company culture
• Your value proposition
• Your vision

These elements can’t be replicated. They will always give you an edge over other businesses.

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