The Power of a Network (of Networks!)
Welcome Founders!
A couple of months ago I showed up at a startup event and, as you do, wandered up to a group of people to intro myself. As I was waiting for a gap in the conversation a comment was made that taking the time to have coffee with people wasn’t really worthwhile. I was shocked at this (actually, more like horrified), because if there is one thing every Founder needs to know it is that:
You CANNOT build a successful startup by yourself.
Your network is going to be necessary to help you in a number of ways. Let’s have a quick (and definitely not exhaustive) look at some of the main reasons:
Access to senior customer decision makers
Access to investors, plus credibility references from people they trust
Identification of suitably qualified contractors or advisors
Peer support and advice
There’s a whole bunch of additional benefits from having the right network, so how do you build a network - and what is a Network of Networks? Let’s start by looking at the anatomy of a network.
What’s a Network?
You already have a network of friends, colleagues, acquaintances. These will have organically grown over time and broadly each contact could be necessary for a variety of reasons. In the above diagram we’ve suggested that your network can be divided into categories but how you categorise your network will be dependent on you, your startup and what it needs. Obviously, individual people can fall into more than one category, so it's definitely not clear cut - often the way you first think of them will define their position.
For each category, you’ll want to try and meet a few people at least.
When you first start out your network is probably going to be tilted in favour of friends/peers, potential customers and advisors. It’s highly likely that you’ll need to expand your network. But how much expansion is necessary?
Networks of Networks!
Here’s the secret many people don’t really take advantage of. Actually, it’s not really a secret - it’s more of a fact we tend to overlook.
Yep, each of your contacts is actually in their own network already, as you can see in the example above. This has some important implications when you are looking to expand or extend your network.
You’re instantly credible to introduced new contacts. Expanding your network through your network means that you’re more likely to be credible to your new contacts, based on the recommendation of your existing contact.
Your existing contacts are likely to know new contacts that can fill the requirement you’re looking for. This saves a huge amount of time, both in finding the right person and in establishing your credibility with them. (The power of a Network of Networks)
You (and your startup) are probably known to and discussed by a lot more people than you think. This can be a good thing and lead to unexpected opportunities.
In some ways, expanding your network through your existing network is the same principle as it being easier to increase sales to existing customers than it is to establish new ones.
KEY TAKEAWAYS
You can’t create a successful business by yourself.
Leverage the power of your Network of Networks to find the correct customer decision makers, supportive investors etc.
It’s absolutely going to be necessary to make new contacts.
However, don’t overlook your existing network as they may be a faster way to get to the person you’re trying to find.
Managing, maintaining and expanding your network is a key success factor.
Keep this in mind and ensure that you’re correctly prioritising time. Establishing a network takes months (or years) so you need to be focussing on developing the right contacts well in advance.
What do you think? Let us know in the comments!