Advancing the Economy, One Person at a Time

With a slow economy causing business owners to insist on an abundance of caution before making decisions, traditional business-to-business networking is experiencing an upsurge.
Advancing the Economy, One Person at a Time
Andrea Hayley
6/29/2011
Updated:
6/29/2011

NEW YORK—With a slow economy causing business owners to insist on an abundance of caution before making decisions, traditional business-to-business networking is experiencing an upsurge.

Networking is getting more popular “as people are seeking to increase their business in a difficult economy,” said Pat Ahaesy, past president of The National Association of Women Business Owners (NAWBO), New York Chapter.

Ahaesy, who has been running a networking group for NAWBO for two years, says she is seeing a lot of startup business owners looking to find their first piece of business.

Ahaesy runs a structured event, where each participant first gets 30 seconds to give an elevator pitch, or speech. Afterward, people get together in small groups to discuss a business question or problem.

In this setting, “people who are new networkers feel relieved. ... They feel comfortable,” said Ahaesy.

Networking takes many shapes and forms, from attending events such as conferences, trade shows, speaker lunches, social gatherings, and so on—basically anywhere one can go and meet people.

Mordechai Moshin, CFO with Core Systems LLC, a software development and consulting company, said he attended a networking event in LA a number of years ago where he met someone from an accounting and law firm that needed exactly the kind of services his company offered.

They continued to meet after the event, including through video conferencing, and it resulted in a long-term contract, with Moshin’s company providing services to help establish an entire new service wing for the law firm.

“Networking opens the doors to opportunities that you cannot even imagine,” Moshin said.

Networking, or doing business with people you trust, is as old as business itself, says Bob Reiss, a graduate of Harvard Business School, guest lecturer at 50 universities, and author of the recently released “Bootstrapping 101.”

“It is always the same. Nothing has changed. Today, people jump higher, but the game is played the same way,” said Reiss.

“If you want to be successful, you should do networking,” said Reiss in an interview.

Many people may imagine networking to be that awful arrangement where people corner others in a room, trying to sell stuff, and pass out business cards.

But that is only one kind of networking set up. There are many different formats that event planners are exploring.

Scott Eisenberg, a real estate lawyer who runs a networking group called Swap-the-biz, says his group attracts sales professionals, small business owners, and entrepreneurs looking to grow their businesses through referrals.

The way it works is that people from complementary industries team up: real estate agents find financiers and lawyers to complete home sales, and everyone benefits.

Swap-the-biz looks hot. Founded less than a year ago, it boasts 751 members, with new business professionals joining every day.

Eisenberg said his way is to foster an environment that supports conversation through personal introductions, and also by giving referrals to others. A small fee attracts people who are committed to networking, and in exchange, he offers motivational speakers, gift bags, and meeting space where networkers can buy drinks and food, and relax.

David A. Delseni got involved in networking after Eisenberg used his insurance services. He got a warm referral out of it when Eisenberg posted the fact on his website’s message board. More people were then encouraged to post more referrals.

Delseni said he usually talks to four to five people at an event, but like many, he never expects immediate results.

“But if you don’t come, you will talk to zero,” Delseni said.

Eisenberg said he thinks networking is in fashion right now, and that he can also “bring it to the next level.”

“There is a huge audience that hasn’t touched on it yet,” Eisenberg said.

Reporting on the business of food, food tech, and Silicon Alley, I studied the Humanities as an undergraduate, and obtained a Master of Arts in business journalism from Columbia University. I love covering the people, and the passion, that animates innovation in America. Email me at andrea dot hayley at epochtimes.com
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