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, Mich. “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.”

But if business owners choose community, trade or networking clubs to attend on a
regular basis — groups that interest them
so they will stay involved — then the pay-back over time is new clients, strong community ties and relationships with other
business peers in the region.

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 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.

How do business owners decide where to
start?

First, they 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. For example, 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 as does the likelihood that a fellow member will refer our
bank to another friend or colleague.
Networking doesn’t always produce
instant gratification. Like anything, the
time and effort you dedicate to these community groups will determine the benefits
gained from involvement.

Why should owners 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 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. Many of
our loan officers make individual calls to
different real estate agents at the same
firm. We’re there all the time. 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. Set goals, define your interests and
explore various community options. Then
save the date on your calendar and stick to
it.

CRAIG JOHNSON is president and CEO of Franklin Bank in
Southfield. Reach him at [email protected] or (248)386-9860.