Community networking

How a business owner spends free time
outside the office can be just as
important as sales calls and conferences that take place during the workday.
Networking opportunities provide an outlet for corporate leaders and employees to
mingle with business peers, government
officials, political figures and other local
decision-makers.

“Networking is an ongoing commitment
to your business,” says Craig Johnson,
president and CEO of Franklin Bank,
Southfield. “It is not a one-time deal.
Networking must be part of your business
plan, and you are not always going to see
immediate results.”

Smart Business asked Johnson why
involvement in a variety of networking organizations is beneficial for companies and
how to make the most of these experiences.

What types of networking opportunities exist
for business owners?

There are various community-oriented
organizations that rely on the support and
involvement of businesses. When business
leaders step up to the plate and participate
in a group like the chamber of commerce,
the message they send is one of commitment to the region and its welfare. There
are various types of networking organizations, and each provides a different opportunity to improve community relations,
meet business peers or gain new clients
and vendors. Each region has community
organizations like a chamber of commerce,
trade associations and small group networking clubs with diverse membership.
Each attracts a different population of
members, so ‘layering’ involvement by
choosing a group that falls into each of
these categories will expose business owners to the most opportunities. Trade associations are great venues for meeting
industry peers and potential customers
while networking clubs generally involve
professionals in different disciplines, such
as real estate, banking, accounting, etc.

Where should a business owner start?

First, business owners should define
their goals, and these ought to be broad based. Because each type of networking
organization focuses on different objectives and attracts different members,
checking out different groups is a wise
strategy. If the goal is to attract new clients,
the most targeted way to do this is to network at industry events or attend trade
shows. As a bank, we attend an annual conference for title companies, financial institutions, insurance companies and conduits. Our goal at this conference is specific: to gain new business. On the other hand,
we are also involved in the chamber of
commerce. Through this organization, I
have developed relationships with executives in the community, many of whom
may not need my services. However, over
time, these friendships grow stronger and
so does the likelihood that a fellow member will refer our bank to another friend or
colleague. Like anything, the time and
effort you dedicate to these community
groups will determine the benefits gained
from involvement.

Why should an owner encourage employees
to network in the community, as well?

There is a lot of truth to the phrase
‘strength in numbers.’ When many employees from a company give their time to an
organization, people begin to notice. This applies to volunteering for nonprofit causes, attending trade meetings, participating
in civic groups and joining smaller networking clubs. In fact, several of our
employees attend networking luncheons
on a monthly basis where they trade referrals with professionals in different industries. We encourage everyone to reach out
to the community.

Actually, we apply the same philosophy to
community involvement as we do to how
we call on prospective clients. For example,
we do not assign a single associate to call on
every real estate agent at a firm. Instead,
many of our loan officers make individual
calls to different real estate agents at the
same firm. Real estate agents notice that our
bank is prominent at their business. The real
estate agents who don’t do business with us
wonder whether they should follow the lead
of their colleagues.

The same effect takes place when a company’s employees together decide to get
involved in an organization. Before long, its
members realize that this business is interested in what goes on outside corporate
headquarters. Word-of-mouth is a powerful
thing.

Where can business owners start if they want
to tap into networking opportunities outside
the office?

Chambers of commerce are great places
to start. Generally, these groups arrange
mixers, programs and meetings focused on
many areas of interest. Another venue to
explore is special-interest groups like
Young Professionals in Finance or Young
Entrepreneurs — similar organizations
that target a specialty. The key is for business owners to choose groups that interest
them. Because networking requires a commitment of time and regular meeting attendance, a sincere interest in the cause is
essential. Set goals, define your interests
and explore various community options.

CRAIG JOHNSON is president and CEO of Franklin Bank in
Southfield. Reach him at [email protected] or (248) 358-6459.