How can I join a Business Networking Group?

Creating a Business Networking Group

• What steps should be undertaken to form a business networking group of accomplished business professionals. The purpose of the group will be to establish a forum for the individuals and businesses that participate to interact and generate business opportunities with other network members as a result of their participation. Most importantly, as the host of the network, I want to use the forum to generate business opportunites for me. Initially the forum will be at no cost to the participants, subject to invitation only, but I would eventually like to charge a fee for membership in the network.

• Answer:

  Hello, eight-ga! Wow.....this was a harder question to answer than I thought it would be. After many, many hours of research, I have still not found a single source that provides a step-by-step procedure for organizing and managing a Business Networking Club! However, after reading numerous articles "about" networking clubs, I have developed a fairly good grasp of the primary concerns and major steps that should be considered in organizing a business networking group. I have put them together for you below. You are probably aware that the concept of business networking has been turned into an international phenomenon. The guru of business networking is Ivan Misner, who started Business Network International in 1985. The company now offers franchise opportunities with chapters all over the world. While the company does have a Leadership Manual, it is not available to the general public, for obvious reasons! If it were, this answer would be far easier!!!! Although your business networking group will be unique to your needs, you may want to take a look at the Frequently Asked Questions on the BNI website to gain a basic idea of how their meetings operate: http://www.bni.com/default.aspx?DN=5,1,Documents You may also take a look at current and past issues of their newsletter, Success Net for any insipration or tips (though I did not find much): http://www.bni.com/default.aspx?DN=6,1,Documents == STEPS TO FORMING A BUSINESS NETWORKING GROUP ********************************************** 1. IDENTIFY YOUR CORE GROUP AND DETERMINE WHAT YOU CAN OFFER ============================================================= Most business networking groups restrict their membership to one representative from a particular occupation. If the purpose of a business networking club is to generate leads for individual business members, it only makes sense that the group members should be "non-competing". "We only take one person per professional specialty. So if you are a residential real estate person and we already have one, we can refer you to another chapter, or allow you to open another chapter. Of course, if you are a commercial real estate person, you could be eligible to join this chapter." From "FAQ'S." International Business Network. http://www.bni.com/default.aspx?DN=5,1,Documents = "To form your own networking group, it will help if you do a needs analysis. Talk to potential members of your group to find out what they are looking for, and what other groups have not been able to do for them. As you talk to people you will learn about groups that are active in your area. You will also begin to understand how you can make your group different from those currently in operation." From "Ask-an-Expert: Starting a Business Networking Group." Canada One http://www.canadaone.com/ezine/expert/expert128.html 2. AIM FOR DIVERSITY ===================== Individual members should represent a diversity of businesses that can generate leads for each other. Resist the tendency to be homogenous. = Read the following excerpts from an article by Ivan Misner: "It is human nature to congregate with people who are very much like us. People tend to cluster together based on education, age, race, professional status and more. The bottom line is that we tend to hang out with people who have experiences or perspectives similar to ours....The problem with this is that when we surround ourselves with people who have similar contacts, it may be difficult to make connections with new people or the companies we desire to do business with." "A diverse personal network enables you to increase the possibility of including connectors, or linchpins, in your network. Linchpins are people who in some way cross over between two or more clusters or groups of individuals. In effect, they have overlapping interests or contacts that allow them to link groups of people together easily." "When it comes to networking, diversity is key because it allows us to locate these connectors between clusters of people." "Some of the strongest networking groups I've seen over the past two decades are ones that are diverse in many ways. They have a good mix of members based not only on race and gender, but also on profession, age, education and experience. The more diverse your network, the more likely you are to make overlapping linkages between clusters of people. The more linkages you can make between clusters of people, the stronger your network can be." "If you wish to build a powerful personal network, branch out. Build a diverse network of professional contacts that includes people that don't look like you, sound like you, speak like you or have your background, education or history. The only thing they should have in common with you and the other people in your network is that they should be really good at what they do. Create a personal network like that, and you'll have a network that can help you succeed at anything." From "The Importance of Diversity in Networking," by Ivan Misner. Entrepreneur. (January 26, 2004) http://www.entrepreneur.com/article/0,4621,313946,00.html 3. ORGANIZE MEMBERSHIP AROUND A "CONTACT SPHERE" ================================================ The concept of a "contact sphere" will help you to identify initial members as well as future prospects that you might like to include in your network group. The term is used to identify members that can mesh together to form a profitable networking relationship that is noncompetitive. = Excerpts from an article by Ivan Misner follows: "A contact sphere is a group of business professionals who have a symbiotic relationship. They are in compatible, noncompetitive professions, such as a lawyer, a CPA, a financial planner and a banker. If you put those four people in a room for an hour, they're going to do business together. Each one is working with clients that have similar needs but require different services. Hence, they're working that symbiotic relationship." "My favorite example of a contact sphere is the caterer, the florist, the photographer and the travel agent. I call this the "wedding mafia"! If one gets a referral to a wedding, then they all get a referral to the wedding. These professions, more than most, have truly learned how to work their contact sphere." (See article for more examples) "Identify as many professions as possible that fit within your company's contact sphere. Take a look at what professions your industry tends to work with to get an idea of repetitive and reciprocal referrals. Create a list of these professions." "Invite these people to participate in networking groups with you so you can formalize your relationship and have a way to stay in regular contact. Maintaining the relationship is key. A good way to do that is to participate in groups that put you together on a regular basis." "Evaluate the professionals in your contact sphere that you are presently referring. If they are not reciprocating, you may have the wrong profession or the wrong person. Fill the spot with someone who is willing to reciprocate." From "Developing a Networking Contact Sphere," by Ivan Misner. Entrepreneur. (August 19, 2002) http://www.entrepreneur.com/article/0,4621,302585,00.html = Take a look at the membership roster of the Capitol Hill LeTip Networking Organization: http://www.letipcaphill.com/members.jsp 4. ESTABLISH THE BYLAWS AND FILE THE NECESSARY LEGAL FORMS =========================================================== Bylaws will, of course, be established by you or the core group of members. To see an example of bylaws instituted for a business network club, see: "Bylaws of the Leadfinders Business Network": http://www.leadfinders.org/pdf/Leadfinders_ByLaws.pdf = "In terms of the actual process of incorporating/registering your networking group, the best approach will depend on the specifics of the organization you intend to form. For example, will you operate as a non-profit? Or will you be a for-profit group generating revenues from the sale of memberships/sponsorships/products & services? A lawyer can help you with the business incorporation in either case. If you decide to operate as a sole proprietorship or partnership, you'll want to make sure that you aren't exposing yourself to unreasonable risks." "Growing Your Business." http://www.womanowned.com/growth/networking/networkinggroups.htm 5. ESTABLISH THE "WORKING" RULES FOR YOUR GROUP =============================================== You will need to make decisions ranging from meeting schedules, group size, expectations from members, methods of inviting and approving new members, means of terminating memberships, collection of fees, use and placement of incoming money, establishing group committees, etc. The business networking group, LeTip, has some interesting questions and answers on their website that should help you further identify some of these considerations. In fact, LeTip goes so far as to verify the background of potential members by visiting their place of business! "An inspector from LeTip will visit and confirm your place of business. You must be voted on to become a member." Please visit the LeTip website and read through the Questions and Answers for some ideas: http://www.letip.com/nabout.htm You might also want to see examples of forms they have on their site: http://www.letip.com/nforms.htm (a few of the PDF files do not work well) Welcome potential member letter breakfast chapter Welcome potential member letter lunch chapter Transfer Application Warning of Termination Termination of Membership Monthly Chapter Report Procedure To Open A Chapter Checking Account New Officer Information Form Attendance Chart Top 50 Categories Internationally How Often Will You Meet? ======================= The strictest business network groups meet once a week. Members are expected to attend, or send a substitute in their place if they will be unable to attend themselves. Other groups meet once or twice a month. Members will need to decide how often is enough for their networking needs. How Formal do you want to be? ============================= Some groups follow a regimented formula where each member provides a brief introduction and description of their business and the networking begins. During weekly meetings, each member usually gives as well as receives leads collected from the previous week. Other groups are less formal, combining networking with workshops or presentations by outside speakers about matters that might interest group members (insurance, new equipment, the latest investing trends, marketing tools, etc) = There is certainly nothing informal about the UK Business Network meetings! http://www.business-network.co.uk/concept.asp "The Business Network holds monthly luncheons in major towns and cities throughout the UK. The luncheons bring together senior decision makers to both promote their businesses and expand their network of local and regional resources in a very dynamic and structured two hour session. Such is the success of this formula that over 3500 businesses have taken up membership, with further expansion planned for 2003." " Membership is corporate and is open to all types and size of business. ** However, attendance at our luncheons is restricted to "decision makers" who have buying and selling authority." * "To ensure a good balance, each category of business will represent no more than 5% of the total membership." "Following a pre-lunch reception, starting at 12.00 noon you will be seated on a table at 12:30 prompt, with senior decision makers from several other businesses not competitive with your own profession. Following a short address from the lunch host, each person at your table will be given the opportunity to explain about their company or service." "Each month you sit with a different group, or you may choose to be seated with someone specific, which we endeavour to arrange. This interactive session during the course of lunch has proved very successful in developing business relationships amongst our current members." "There follows a session, where, armed with a seating plan, you can circulate around the room, introducing yourself to appropriate contacts for your business. This is a very dynamic and successful session, allowing you to meet many members/guests missed in the first session. It works extremely well!" "Finally, the host will close the lunch with a 'notice board' session, informing the attendees of any special offers that members wish to promote and indeed, what is happening in and around the local Networks. Each lunch closes at 2:00pm sharp to assist you with your diary planning." == Here is another example of how the "Executive Group of Houston" runs their meetings: "The Executive Group is not like some networking groups where you "must bring 3 leads" or some other arbitrary requirement. Yet leads, exchange and regular attendance, Commitment, is requisites of continued membership. The Executive Group is also different from other networking groups in that we do not have weekly guest speakers. Meetings are dedicated to the member's sharing leads, giving "spotlight" presentations on their business, or polishing their professional networking skills. Membership is open to individuals only (not to businesses or corporations) and is not transferable. Once an individual has attended a minimum of three meetings, they must apply for membership. The application for membership will be brought before the Executive Group for consideration of acceptance. Membership dues are $130.00 payable quarterly. Membership shall be limited to one person from any competitive career field." Download sample application for membership from site: http://www.execgroup.org/main.php Will you charge a fee? ====================== You have mentioned that you eventually want to charge for membership. Most groups I have come across do charge fees. When you decide to charge, be realistic. Members need to feel that they are getting their money's worth if they are paying for participation. = "Expect to pay dues of $50 to $200 a quarter to belong. These dues usually include a breakfast meal. Paying $200 a quarter is cheap when you look at the potential sales that can come from joining. Stick with it too. If after a quarter you don't seem to get anything from going, stick with it for another quarter just to make sure. I belonged to my first networking group for one year before I really started receiving referrals. This type of business comes with trust and trust can take some time to develop." From "Growing Your Business." http://www.womanowned.com/growth/networking/networkinggroups.htm = While your group will be on a much smaller scale than a large, international organization like IBN, the following article may be of interest: "Where do the dues go that I pay for my BNI membership?" Success Net. IBN http://www.bni.com/successnet/3rd_qtr_2001/ask.shtml == When you are ready to charge a membership fee, decide if you want different membership options depending on committment and participation. "The network has a range of four different memberships depending on what level people want to be involved, ranging from the Premier Associate for those who want to make a long-term commitment to the network to a Participant who cannot always take part in the activities." http://www.businesseurope.com/cmn/viewdoc.jsp?cat=startup&ct=ft&docid=BEP1_Feature_0000010475 Do You Need a Membership Committee? =================================== As the group grows, a special membership committee may be in order. The committee can establish the methods of inviting new members, screening potential members for actual inclusion into the group, and identifying criteria for termination if they are considered unproductive. The IBN has outlined some reasons for forming a Membership Committee: "First, the committee exists to screen potential new members and make sure that the very best applicants are accepted into your chapter. Secondly, the committee maintains the integrity of the chapter by helping to resolve disputes, seeing that members follow the policies and guidelines, and assisting the Leadership Team when appropriate." (Read more about how to screen applicants, etc...) From "Effective Use of the Membership Committee," by Elisabeth Misner. Success Net. (Summer 2000) http://www.bni.com/adx/asp/adxGetMedia.asp?DocID=6,1,Documents&MediaID=49&Filename=Summersn_2000.pdf How will you interest new members? ================================== 1. Some groups have visitor nights when an invitation is provided to members of the business community at large. Group members provide an overview of their business, trying to a encourage a spirit of competition among the visitors to "sign on before the competition does." 2. Many groups encourage their members to bring a referral or potential new member to each meeting. 3. Other groups have a invitational meeting several times a year. 4. Members apply, and the chapter's screening committee evaluates whether the person can benefit the chapter and whether the chapter can benefit the individual 5. Let the meeting sell itself to new members, advises the IBN newsletter, Success Net. Invite individuals, but don't tell them too much about what goes on in the meeting. That way, the inspiration to join will come from within, rather that from outside pressure. "How to Successfully Invite Visitors," by Carol Greebe. Success Net. Spring 2000 http://www.bni.com/adx/asp/adxGetMedia.asp?DocID=6,1,Documents&MediaID=48&Filename=SNFall2000.PDF = The "Results for Business Club" provides an interesting overview of how they conduct their meetings, invite members and collect fees: Excerpt -------- "RFB is a very special business club. It's run by Stephens & Co for our accounting and business development customers. The club meets once each month in Stevenage for a 2-hour meeting. Every meeting has a business theme to it and will usually involve a presentation and workshop. The sessions are especially designed to help you improve your business growth and profits." "The meetings are very lively and interactive. You will be encouraged to share your ideas and experiences with other members. That way, we all grow together." "How much does it cost? Your first meeting is FREE. You then pay £50 per month plus VAT to come to the meetings. We ask you to pay by standing order because it's important to have your commitment to attend each meeting." "If you introduce a new member who joins up, then you get 3 FREE meetings. It's just our way of saying "Thank you". "You will also find that there will be many opportunities to do business with other businesses and to generate referrals between members. Supposing you are a florist. As you get to know the other members of your club and work with them, isn't it likely that they will start to buy from you? And if you offer a good service, it's just as likely that they will start to refer their friends and colleagues to you as well." "At each meeting you will receive a pack of working notes and ideas forms. These are yours to keep. The value of an idea is only ever in it's implementation and we want you to implement as many ideas as possible. You will receive a FREE monthly newsletter from us. This is a special newsletter that is only distributed to RFB members. It's packed with more ideas and information about improving your business. "You can bring another member of your Team completely FREE of charge. Membership entitles two people to attend each meeting. If you want to come on your own, that's fine. However, think how valuable and motivating it would be if you brought along some other members of your Team. Many of our members say that one of the biggest benefits is being able to share things with other members." "Members of our club are likely to grow their businesses more quickly and be more successful than other businesses. We are building links with suppliers who recognise the benefits of supplying you so that you can achieve benefits that far outweigh the cost of your membership." "How long does membership last? Our plans for the future of the club extend for many years. We estimate that we have sufficient material for at least 7 years. Of course, you can stay with the club for as long as it suits you." ** "If, for any reason, you are not absolutely satisfied that the meeting has been of value to you just let us know and we will refund your investment in full." Please read more at the "Results for Business Club" website: http://www.resultsforbusiness.co.uk/club/index.shtml ==== The following additional articles provide interesting overviews of several business networking groups: Business networking groups: how to be more productive in less time, by John Kuraoka. http://ourworld.compuserve.com/homepages/kuraoka/groups.htm = Want to Join a Networking Group? With six types to choose from, narrowing the field will help you find the groups that are best for your business," by Ivan Misner. Entrepreneu. December 23, 2002 http://www.entrepreneur.com/article/0,4621,305516,00.html = And one final overview of a viable business networking group! From "Growing Your Business." http://www.womanowned.com/growth/networking/networkinggroups.htm "Do you consider yourself a good leader? Do you not have any networking groups in your area? Consider starting your own! What you need to do is contact a number of other business owners you know and see if they would be interested in starting a referral group. The goals of the group would be to generate qualified leads for others in the group by an education process that occurs at each weekly meeting. Meet each week for 1 hour (usually around a meal - 7:30 a.m. times are popular) and the meeting goes something like this: * Everyone introduces herself and her business. * New members (or potential) are introduced and have 1 minute to talk about their business. * Have the elected President call the meeting to order and discusses upcoming events. * Plan group activities to increase membership and exposure in the community. * Each week have one group member prepare a talk (15 - 20 min) about what their business does. Members can ask questions. * The President asks for "referrals to be passed" - we use little forms with contact information on them as referral slips. * Conclude the meeting by having everyone state what would be a good referral for them that week. * *Business cards are passed. Getting A Group Motivated -------------------------- "After the first couple of weeks, many groups go through a "blah" period. Perfectly normal. Try to spark things up by bringing in a speaker on sales or plan a social event on a weekend with spouses and/or children. Make referral and new member goals to give the group something to work toward. Every week fax out an agenda to the members with last week's minutes and encourage attendance. Have a pizza party and go door-to-door in surrounding business offices, inviting owners to a free lunch to get to know your group." "The group that I formed in my little town has been running for over a year now and has between 18 and 22 members at any given time. We usually exceed our quarterly goal of 80 referrals and have a good time at quarterly social events with our spouses. It is a mixed group of men and women from very different professions. The work I have received from the group has more than offset the fact that we meet at 7:30 a.m. every Wednesday morning!" ========== Well, I truly hope this compilation of ideas from a wide range of articles helps you to form some ideas about how to start your own business networking group. If I have left anything out, please forgive me. As I stated, there was absolutely nothing I could find that provided a step-by-step guide on how to start a group on your own. Perhaps, after your own group is up and running and you have had a year or two of success, * you * should publish a booklet for others who would like to take the same steps but don't know how. I bet it would be widely received! Sincerely, umiat Search Strategy how to start a business network group how to start a network group how to run a business networking group independent business network "contact sphere" and business network LeTip International International Business Network business network club bylaws Proquest Database search on variations of business networking groups References from the Proquest Database: "BUSINESS NETWORKING GROUP BELIEVES 'GIVERS GAIN'." Palm Beach Post. (Jul 11, 2001) "Business Networking Group Expands to Encinitas," by Sandra Aguila. San Diego Business Journal. (May 28, 2001) "Small Business Networking group links with new members, by Kent Miller. The Business Press. (May 28, 2001)