“ARE you on Facebook?” Not long ago this phrase would have been confined to a
student bar. Now you might hear it anywhere, including the office. In the
past few years social networking has become commonplace and is rapidly
infiltrating professional life. So do social networks offer any benefits to
small businesses and is it worth investing time in them?
Andy Lapota, a networking consultant and director of the online network Word
of Mouse , believes social networking is here to stay. He said that the
Blackberry and fast, round-the-clock access to the internet had paved the
way for online social networking.
“The internet is suddenly much more accessible,” he said. “Without the long
download times that frustrated us when we were using telephone modems, we
can do so much more online.”
Lapota also believes that the online networking revolution is largely being
driven by demographics.
“Many of us have had to learn about the internet, e-mail and other new
technology as adults. But now an increasing number of people are entering
the job market and business community for whom texting, instant messaging
and blogging are a way of life,” he said.
All of this means that small-business managers should not ignore these
phenomena but use them to their advantage.
For the business manager thinking about trying them out for the first time,
things are not nearly as daunting as they seem.
For a start, “social networking” is an umbrella term. It encompasses the
well-known networks such as Bebo , MySpace
and Facebook - set up as social
tools for students - but it also includes a raft of online networks designed
specifically for businesses. The latter are not purely social sites; rather
they are online business networks that can provide a host of contacts and
potential business opportunities.
Business networking sites normally fall into one of three categories. The
first is profile-building networks, such as Ecademy or BT
Tradespace . Essentially, these sites let users build up their business
profiles by posting details of their activities, writing blogs, joining
clubs and exchanging messages with other users.
The second type of site is the brain-building network, such as Web
Wednesdays , focusing on an exchange of information and business
support. These sites aim to bring together professionals – often from one
area of business – to exchange ideas and solve problems.
The third type of site is the referral-building network, such as Linkedin
and BT Tradespace, which focus on business building. They aim to connect
members so they can get to know each other’s skills and previous
experiences, which leads to recommendations, referrals and word-of-mouth
marketing.
Penny Power is the founder of Ecademy ,
an online business network. “Joining Ecademy is essentially about being
among a group of like-minded people - some of whom are further along the
line than you in terms of experience and some of whom are behind,” she said.
“It’s about giving as well as taking. You mentor others as well as ask for
advice.”
Power also believes that social networks can provide vital emotional support.
“In the corporate world you have other people to bounce ideas off and
encourage you. If you are on your own, getting started can be very lonely.
Ecademy provides a place to share your worries with others. I often hear of
members talking through business problems with other members. They would
rather do this than burden their families with it,” she said.
Fay Olinsky founded her business, Personal Chef, in 1994 and has since built
from scratch a clientele for her private catering services. Social
networking has played an important role in the process.
“When I launched the company I had to get Personal Chef established as a
household name, but I didn’t have a big budget for advertising,” she said.
“Networking with Ecademy was a godsend. I was able to blog daily about what
I did and discuss my business online with the people I was getting to know.
I have never needed to pay for advertising and my business has grown
steadily.”
Olinsky is logged on to Ecademy for most of the day, but estimates that she
spends about two hours updating and reading items. She particularly focuses
on writing her blog; her topical comments have resulted in her being
interviewed on television and radio.
“I tend to be a little robust and controversial and have views you either love
or hate. I attract a lot of comments on my articles,” she said. “This is all
good publicity because it makes Personal Chef prominent.”
Along with advertising, Olinsky has discovered many other benefits that being
a part of an online community brings – some more unusual than others.
“I can’t be grateful enough for all the free technical advice I have been
given,” she said. “Things like having forms designed specifically for my
business built for free. I’ve even had advice on how to change a light bulb
in a BMW. I put a note up in the online forum and about five minutes later
someone had told me how to do it.”
Lapota believes that online social-networking sites, when used wisely, can
prove to be beneficial to the small-business manager.
“Whereas people traditionally used cold calling or advertising to market their
business, over the past 10 years there has been a big rise in referrals,” he
said. “This is where social networking can be extremely helpful.”
Social networks provide an opportunity for members to build a profile for
themselves and in doing so establish their name and market their business.
They then have access to thousands of contacts with whom they can network.
Members can read other people’s profiles in order to build relationships,
ask for advice or share expertise. As trust builds, referrals become a
possibility.
However alluring this may sound, Lapota warns that social networking is not a
substitute for going out and meeting people in person.
“The big mistake for any business owner to avoid is turning your back on
traditional face-to-face networks in favour of online social networks,” he
said. “It may be easier spending a few minutes online each day than taking
the time to meet people, but business and referrals will always be built on
trust and understanding. That takes getting to know each other – you
have to see the whites of people’s eyes.”
Lapota believes that Facebook should be used differently from the online
networks designed for businesses. He sees Facebook primarily as an
opportunity to let friends and family know what you do – if business
does end up coming out of it, then this should be seen as a bonus, not the
original intention.
“Where Facebook excels is in breaking down the barrier to getting friends and
family to support you in business,” he said. “It’s a business opportunity in
a different form as this can be the group that is going to help you the most
and support you the most.”
Social networks can facilitate, manage and nurture relationships, but used
alone they will never be enough to sustain your business contacts.
With the networking revolution set to gather momentum, joining one of these
sites is not going to be a waste of time – rather, by putting in time
and effort, the small-business manager is likely to see a wealth of
opportunities as a reward.
MAKING THE MOST OF A NETWORK
Don’t be overwhelmed by the number of sites available. Spend time
investigating which would be the best for you.
Select the network you want to join and then focus on it. Do not join too many
and then leave your site abandoned.
Put aside time every day to spend on the site. To be successful at networking,
you need to take the initiative.
Connect with others and ask them what they do. Never try to sell yourself to
them without establishing a relationship first.
Be patient: building trust takes time – do not expect immediate results.
