It’s one of those awesome summer mornings, I got up early to plan my day – I got back to basics and I don’t get into emails until I have planned my day and organised my desk. I try to start my day with coffee, reading and doing some people watching from my balcony. It is fascinating to see how the quiet main road in my suburb – Sea Point: South Africa comes to live. Strangely, everyone follows the same rhythm: whether they are rich or poor, whether they own an expensive shop or whether they unpack their structural material to erect their informal fruit stall. They arrive, unlock, prepare and then they wait… I eagerly awaited the good news to confirm my appointment to roll-out a project for a company throughout South Africa. I couldn’t wait because a month ago I received very bad news which caused financial chaos in my life. A key client postponed a country-wide project until next year!

I am sure that if you are a new entrepreneur, consultant or even a full-time employee, who have had a similar experience, you will understand the nightmare which such cause in your life! As a self-improvement teacher I never really had the proper credentials to help people to really believe in themselves when their livelihood is threatened. After reflection on my options at hand I decided to see the experience as a challenge to test my own conviction in what I believe and what I teach others. I often say in my talks that it is one thing to know the way, it’s another to show the way and it’s another to go the way. I received the expected call at 11h00 and I enjoyed the good news. Guess what? I found the project through a relationship I have built two years ago and just as I was about to leave my office, I received another call from Johannesburg: South Africa for a telephone meeting to discuss another project. So this newsletter is dedicated to all of you who have received similar bad news. I recently told a delegation of women leaders from across Africa at a conference that winners attract winners and success attracts success. If you want to attract the right people then you must work towards becoming a winning magnet. Here are some tips to help you move from the mindset of a “survivor” or an “economic causality’ to that of winner:

1. Mourn your situation and acknowledge that you have a challenge. If you deny it, go to bed and hope it will be gone tomorrow, then you cannot do something about it.
2. Recall all your inner resources: your self- belief, tenacity and courage.
3. Reconfirm your vision for yourself and those you care about.
4. Problems come our way in two manners: It is brought into our lives without being asked for or in most instances it is the result of our own decisions. I am convinced it forces us to see what we are capable of achieving in life. Without problems would we ever know our full human potential? Ask yourself: What have I learned? What will I do differently if I can do it over again? If the decision you have taken is the origin of the problem, then change direction. Take a different decision to get a different result!
5. Follow Stephen Covey’s – author of 7 Habits of Highly Effective People - advice. Focus on your sphere of influence. What can you do to influence the matter in a positive manner? If you focus on the problem then you will get more problems.
6. State the solution and take action to implement the solution.
7. Review your Board of Directors – your personal and professional advisory board are the people in your network who must guide you, advise you, mentor you and nourish you. Determine if everyone is adding value to your life. In my keynotes, I suggest that people must have allies in their network; they must have a Board of Directors. Jim Smith Jr, a professional speaker in America, calls it your dream team and he notes that membership should be sacred and valued. Here are some of his tips to cope with creditors:
7.1. Keep your creditors up-to-date regarding your plans to bring in revenue
7.2. Prioritise your debt and pay what needs to be paid
7.3. Distribute your funds amongst creditors
7.4. Take control of conversations with creditors, and refer to your current financial situation as a temporary bump in the road
7.5. Maintain a positive mindset. You will instill confidence in your creditors when your voice sounds upbeat. No one wants to attend a “tension convention”.

Don’t go back to your problems because it will not be the same problem. As you dwell on the problem you add baggage to it and it becomes a bigger problem. Don’t recall the problem. If you have to do so, recall the steps you have taken to make you a better you. If the problem is as a result of what someone did, then face and address it. If you can resolve it, then do it but don’t treasure and talk about it again. With my new project contract and a number of speaking engagements confirmed for next year I am confident that my best is yet to come in 2010. I wish you great holiday season and wonderful 2010. Remember 2010 is Africa’s Largest Networking Extravagancy. Have you planned your networking strategy?

I’d love to hear from you. Tell me via karl@businessnetworkingsouthafrica.co.za how you deal with problems or how you made it through the tough economic times.

Using Referral Prospecting to Build Your Business

Referral marketing can be described as the “science” and practice of initiating, developing, and maintaining deep trusting relationships to create business success. In today’s highly competitive, over-crowded world of services marketing, being ‘professional’ is a minimum expectation to get into and stay in business. Beyond that, you must also become known to and regarded by the kind of people who can best appreciate the beneficial difference you make in the life of a client. That is where marketing your services comes in. And, since you are not pushing a product off of the shelves in a retail environment, your methodology must be aligned with this reality: your marketing reflects the quantity and the quality of the relationships you develop with people who can help you grow your business or professional practice. Trusting relationships lead to referrals. To generate a large referral business, you must be in trusting relationships with the right people and they must be mutually beneficial relationships. A satisfied customer base is the foundation of referral marketing. Referrals will not happen if customers are unhappy with your product or service. 

Another expert in the area makes this distinction, Referrals work so well because of two main elements. First, commonality. The fact that your prospect and you know someone in common warms up the conversation from the very beginning. Usually, the better the relationship between your referral source and your new prospect, the warmer this first interaction will be.

The second element present is endorsement - either implied or explicit. An implied endorsement comes when you use the name of your referral source right away and mention that the referral was given because of the great service you provided. An explicit endorsement comes when your source speaks to your prospect before you call. These elements of commonality and endorsement do not just make the first conversation easier. They also significantly increase the chance of winning the new client. You will get fewer obstacles and objections, you will immediately operate from a higher level of trust, and your new prospect turned client will have a stronger sense of loyalty right from the start.

Prospects or clients have high expectations of what you might do for them. To provide great service, you must first learn about their previous experiences with others in your industry (and related industries). You must also learn what concerns they have and what they expect you to do for them. Only when you know these things, can you meet their expectations. Once you meet their expectations you can go on to exceed their expectations and turn them into referral sources. Make it a habit to ask every new client (or prospect) about why they chose you. Ask them about their past experiences. You will understand what they expect from you and having this conversation will help them trust you more.

Networking functions provide the opportunity to initiate contact, expand our contact list and to find leads, particularly when we create and nurture quality relationships. However, it is not enough to visit a networking group, talk to dozens of people and collect as many business cards possible. Building a network of trusting relationships with the right people is your most valuable asset in achieving any business goal. It is more valuable than business knowledge and specific skills. Smith says that few , if any at all, of the business commentators on reasons for the failure of businesses, in particular small business, focus on the one subject that virtually every entrepreneur says is critically important to their business—networking, referrals and social capital.

While some entrepreneurs, business owners, professionals and leaders  have a naturally ability to network  and to form trusting relationships others may find it is strenuous  to establish a large network of trusting relationships and maintain that network of relationships over time without the required knowledge, tactics, tools and systems to support that effort. For instance, it may not be easy talk to “strangers” at functions or “working rooms” such as conference, exhibitions, trade show. Others may find it difficult or even fail to ask for referrals without sufficient referral skills education.

Copyright 2007 by Karl Smith

This article may be copied or republished with the following credit:
“By Karl Smith, South Africa’s Business Networking and Referral Coach, Cape Town, South Africa. +27 (0) 082 7779431 “ karl@businessnetworkingsouthafrica.co.za” www.businessnetworkingsouthafrica.co.za