Really, this should be Chapter 1 in the "Shop Talk" book, and maybe it will! Networking is the cornerstone of starting any business, one you will probably engage in before you even start selling your wares. Your relationship with your industry and the business community around you is as important, if not more so, than your relationship with your clients.
Wait, hold up a second! I should ask, does everyone understand how networking is different than marketing? Marketing is selling your business to potential clients (customers). Marketing is about generating revenue by creating awareness and positive buzz about your business to people looking to open their wallets. Networking is business to business (B2B). It is creating a web of colleagues and peers, like minded business owners and connected businesses. For a cake decorator examples include florists, caterers, photographers, and cake suppliers.
Can you market to those you network with? Absolutely! Unless it's another cake decorator!! It drives me crazy when I see shops posting on Facebook pages like ICES with comments like "hey, looking for a delicious cake? Call me." No. I make them too, that's why we're here, to talk about cake, not try and sell it to each other! Okay, pet peeve venting over, on to the show.
Enter the Chamber
I recently had a conversation with one of my nearest and dearest friends about a coffee shop she was opening in Brooklyn. She was asking for advice on getting her name out in the community and such and one of the first things I said was "join the chamber." Now, the caveat is, if you don't have a brick and mortar shop, don't spend the money unless you really plan on participating in all of their events. But if you have a shop, it can give you some traction, especially early on, with the local business community.
First of all, you'll get a plaque. Plaques and awards and official looking documents always lend an air of legitimacy to your business. Plus, they're cool. Customers will trust you more with a chamber seal hanging by your register. Second, they will promote and attend your grand opening. At our grand opening, we had at least 40 chamber members (looking for free cake of course) and were presented with proclamations from the city and the county. Sure, they're in a drawer as I write this, but if I got a frame big enough they'd look great on the wall!! Third, the chamber is in with the local papers and will announce your grand opening with them and probably the paper will send a cub reporter out to photograph and cover your opening. They usually have someone assigned to the chamber so you'll now have a contact at the paper. Fourth, the chamber is filled with successful business owners who like to throw parties. Lots of fundraisers and events for you to attend and shake hands or even better, bring your sweets to and win over the crowd!
Our chamber had monthly breakfasts at various locales where we would meet up to hear about news from the community. Each member then got 30 seconds to stand up and do a little "commercial" about their business. For us, this is what really helped grow our profile in the community and raise awareness of what we do. Meetings like that work to create a small army of business owners that can represent you in the community as they market and network during the course of their business day.
A couple warnings starting with you make cakes, be prepared for the donation phone calls! You will get hit up for a lot of donations. Make sure they're real donations for real events and that you're not being taken advantage of by some chamber member who wants a birthday cake. Deliver to the event, not the chairman's house;) Secondly, not all chambers are as good as ours. We have an active chamber that strives to be a part of the community, you might not. Research your chamber and if they seem like a dud, spend your networking budget somewhere else. Of course, if you have the money, you could just join to get the plaque! And finally, you get what you give. Just signing up isn't enough, you need to participate. Hint: one meeting every fourth month is not participating.
Group Therapy
Especially in larger cities, the networking group is a common sight. They have titles like "Business Pros of The Lower Valley" or "Springfield Business Professionals." They like the word "professional!" But you get the idea, it's a club comprised of local business owners. A good group will be a cross section of businesses from the entire selected area, not just the "fancy" side of town. You will rarely find members from national chains like Target, but you'll probably see franchise owners alongside the mom and pop store fronts.
Once you recognize the networking groups in your city, you will need to decide which one(s) to join. Some will require a fee, some have application processes and interviews, some have wait lists, others might be aimed at businesses with a certain level of annual revenue (the fancy side of town folks). Ask to see a mission statement (if it's not online already), talk to members etc. and make sure the group is a good fit for you. Will you get enough out of your involvement to make it worth your time? Do you even have the time to make meetings or attend events sponsored by the group? You need to interview them as much as they will interview you.
Enter the sub category, and possibly the most useful to you as a cake business, of the wedding specific networking group. A more accurate description would probably be a "referral group." We all know what Wedding Wire is right? Well, think of Wedding Wire on a localized scale. These groups will be a collection of every vendor a typical bride and groom will need to plan their weddings. Members are usually required to refer each other as they meet with potential clients and some groups might even offer incentives to do so. There are wedding networks that only allow one business per category, such as cake, and others that will allow two or three. If they have a dozen other cake shops already, joining won't do you any good. A hint of exclusivity is a good thing...
...but it can also be a negative. I'll be honest, I have mixed feelings about these groups. While the informal and "honest" world of networking with colleagues is one thing, the gang mentality of a group of wedding professionals can create a closed circle of localized bullies that is neither good for clients nor the business community as a whole. I guess it all depends on what side of the fence you fall, but I've kept deposits because a bride's florist talked smack about us during their consultation and convinced her to cancel us in favor of their group's cake maker of choice. Sometimes knowing the group your considering can also mean knowing those outside the group. Make sure you're not joining up with one that engages in such anti-networking activity. Everything is a client's choice, so you will work with every florist in the industry at some point. You don't want to show up to a delivery to find a florist with a grudge because of the way your group operates, especially if they're bringing flowers for your cake! You will represent the group and the group will represent you. Choose wisely.
Handouts
Make a list of the types of businesses where some free samples could go a long way. Teachers and realtors, the types of folk who have a lot of contact with the community. Network with them, and you've got a believer who will spread the word all over town just like what you did with your fellow chamber members. Added bonus: This is a wee bit of marketing too as it never hurts to have a realtor who likes to send sweets to their clients!
Business Cards
Thanks to Vista Print, this is often the first thing you will do when you decide to start your business. Designing your business card is a step to legitimacy and boosts your confidence as you move toward the world of the self employed! You don't have to be this guy, but don't just jump on the cheapest and quickest card you can. If you hand over the Avery 5371 printed at home, it says you're not serious yet, you don't have the infrastructure to handle the business I could send your way. Same goes for the free Vista Prints. Upgrade to the glossy at least!
This article on Webdesigner Depot has 100 creative cards that should give you an idea of how much of an impact your card can have on your networking dollar. Plus, it's fun to see the crazy ones like this:
There's so much involved in successful networking, I don't think I could even call this "Networking 101!" It's more like 41! Just remember that every time you step out to represent your business, there is potential to network. No matter how unconnected someone's business might seem, they're trying to create their own slice of the American dream just like you and they could have an idea or a connection that you've never thought of before that will help both of you. Never forget, you're not just a cake decorator, your a business owner.
Next week on Shop Talk, we discuss the awkward world of customer relations!!
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Posted by: corporate catering los angeles | 11 August 2011 at 11:23 PM