Networking: It’s not what you know
Could joining business networking groups be a real game changer for independent KBB retailers?
According to the Oxford English dictionary, the term “networking” is the action or process of making use of a network of people for the exchange of information, or for professional or other advantage.
Given the need to stimulate a flat market, it’s not hard to understand why the act of joining business networking groups has really taken off among independent KBB retailers in recent years.
While professional networking as an activity, and networking groups as a solution, is nothing new the recent uptick in in retailers joining such groups can be attributed to the pandemic.
Isolation caused by Covid lockdowns seemingly pushed retailers towards business networking groups for peace of mind and a way to gain valuable information about the ongoing situation and to help build relationships.
Business networking may provide recruitment leads, opportunities to gain key industry knowledge, the chance to increase profits, and identify new opportunities to grow your business. It can also open the door to new trend information, sharing and receiving valuable business insight and, in many cases, find valuable mentorship.
“Networking is our main marketing tool and has been pivotal in the growth of our business,” explains Becca Cranfield, director Athena Stonecare. “The old adage of ‘it’s who you know’ has never been truer. There has been a real shift towards ‘community’ in recent years and buying local.
Networking is our main marketing tool and has been pivotal in the growth of our business
Becca Cranfield, director, Athena Stonecare“This has given rise to more small businesses and more opportunity. It is more important than ever to build and maintain your reputation. One of the best ways to do this is via association and trust.”
Tina Riley, managing director of Modern Homes, is also an advocate, having made a point of attending a variety of local networking events over the years. In her experience, it’s not just about gaining business leads – which, she warns, don’t always transpire overnight – it’s also about developing relationships with other likeminded local businesses.
“We have found networking really useful for our business over the years,” Riley explains. “I would highly recommend networking to others but, just bear in mind, you don’t always see a quick return on your efforts.
“I’ve completed two big projects this year – one from a networking event I used to attend 15 years ago and a bathroom for a client I met at a networking event 10 years ago.
“I like to get to know and understand other local businesses around us, as we would always prefer to work with other independents where applicable, so I also find networking very useful for this too.
“We’ve developed good working relationships and added products to our portfolio though contacts we have met through networking locally.”
Strength in numbers
Events run by organisations like the KBSA are critical because they enable retailers to interact with their peers, but what about non industry specific groups? What benefit can they offer independent KBB retailers?
“I’ve attended various networking events over the years, ranging from structured ones like BNI [Business Network International] to informal local gatherings,” explains Belinda Dangerfield, director at Quadus Living.
“Early on, they were a great way to establish my business, not just through referrals but also by building personal connections with other businesses. I was able to confidently refer them to clients and vice versa, which was highly valuable. BNI was particularly useful as they invested time and training into its members, making it a productive networking environment.”
Riley of Modern Homes adds: “As well as small, local events, I also network as part of the SBS initiative, set up by Theo Paphitis [of Dragon’s Den]. There is an event each year at the NIA in Birmingham, where we have talks from the likes of Google and inspirational guest speakers, like Sara Davies, Tom Hunter, Stacey Solomon, and John Roberts. to name a few.
“Without Theo’s black book of contacts, we would never get to meet these people, and I firmly believe that stepping out of your business to connect with others improves your business.”
Chris Foote, director at Total Bathroom Installations, raises a good point about local networking events being a useful resource for business. He says: “I make a point of attending various local networking events, including those organised by the local Chamber of Commerce.
“These, in particular, are a great source of information on schemes and developments in the area that might affect my business and can also shed light on any assistance local businesses are entitled to. The way I look at it as well is that every business owner in the area could be a potential customer.”
Visible proof
According to Toma Navickiene, the co-owner of Kutchenhaus Welwyn and Potters Bar showrooms, networking is absolutely integral to the overall success of small businesses.
I would highly recommend networking to others but, just bear in mind, you don’t always see a quick return on your efforts
Tina Riley, managing director, Modern Homes“It grows your reputation, and brings in business you couldn’t reach through traditional marketing activity,” she explains. “For me it’s about quality referrals, building trust and learning from other business owners. It’s like having an extended team rooting for your success.”
While all of this makes sense and will undoubtedly resonate with retailers, to invest valuable time and money, there must be tangible evidence that networking can create results.
Putting it into perspective, Navickiene recalls how her business has directly benefitted from investing time in networking.
“As a German kitchen designer and seller, I’ve gained great projects through networking referrals,” she says. “One standout was a connection to a property developer, which led to designing kitchens for a luxury housing project. It’s proof that networking works.”
Jerry Shaw, co-owner of Ray Munn Kitchens is a member of BNI Hammersmith and also runs Sheen Networking. He also has proof that networking has directly affected his business’s bottom line positively.
“The sales of kitchens we get through business networking are very important to us and they contribute significantly to our turnover,” he says. “In fact, it is the most measurable marketing we do in terms of cost vs benefit.”
For Dangerfield, the results were two-fold. Not only did networking directly result in new business, but it also taught her invaluable lessons about her own leadership and business skills.
“Networking, especially through BNI, taught me the importance of diligent follow-up. Before, I would hide behind emails and assume clients weren’t interested if they didn’t respond. However, when you’re accountable to the person who referred you, you tend to follow up more actively, often converting more leads into business. Changing my mindset around accountability has resulted in more closed deals.”
Networking may not work for everyone; however, there is no denying that if executed properly, it can be a valuable way for retailers to not only keep on top of industry developments, but also build relationships and gain valuable leads that could help grow their business.