September 28 , 1998

By DOROTHY P. MOORE
Special to the Post and Courier

     

     For businesswomen, successful network building strategies involve four types of networks.  Each works at a different level.  
Personal networks, developed on the basis of interpersonal bonds and relationships, provide a multifaceted approach.  The value lies in the emotional and coping support.
     Professional networks are a must for keeping oneself up-to-date in their field.  Their effectiveness varies based on the exclusiveness and accessibility of the network.   Professional networks that allow valuable information to be shared only among a few exclusive members may confer short-term advantages.  But over time their in-group nature can stifle growth because the network lacks the diversity needed to keep it fresh. 
     Formal organizational networks consist of the more open ways of getting and receiving information.  Only the entrepreneur’s field, interests, or such boundaries as an MBA association or alumni groups by year of graduation limit them.  
     Opportunistic networks are those created when the payoff confers a clear advantage.  By definition, this type of network is intense, interesting and sporadic.  A network originally created because of some compelling advantage may or may not evolve over time to equal the value of the personal and integrated networks one develops. 
     Establishing useful networks involves common sense strategies and a careful weighing of the value of one’s time.  Thinking about going into business?  Here are some questions which may help in assessing the potential business value of current networking skills.
          1.   Have I created network connections with people in other branches, divisions, and specialties inside my company and with individuals in trade, professional and social organizations?
          2.   What is my degree of network activity, that is, the number of people with whom I discuss business matters and how much time do I spend developing and maintaining contacts?
          3.   How dense is my network, that is, to what degree do I reach out beyond personal friends and immediate contacts to discuss business?
          4.   What is the intensity of my network; an expression of how many years I have known network members, how frequently I interact with them and how can I measure the quantity of resources exchanged?

     Already in business?    Then it is time to assess present network value.  What does my business need?  Advice? Contacts? Help in special areas?  A broader customer base?  How much am I willing to pay for the answer, not in money, but in the investment of time?
     Useful networking requires active work.  Collect names.  Good leads are likely to come from people you already know.  In professional circles, these would be your lawyer, banker, and accountant.  In your field of business, they could be a same-career network made up of suppliers, customers, and firms like yours, including those who may be direct competitors. 
     Or the network could be from a mix of industries and occupations.  One advantage of this type of group is that contacts may turn into customers.  The same can be said of networks of people who come together for community service. 
     Follow up new contacts but also cross-references credentials.  Third parties who know an individual can go a long way toward establishing how confident you can be about their advice.
     You can test the value and attractiveness dimension of potential and present network affiliations.  Behind all this is a mathematical model, but all you really need to do to begin is to ask yourself the following questions.
     For prospective entrepreneurs and those making the transition to entrepreneurship, additional questions are:
     How diverse and balanced in meeting the needs of my venture are my existing network links? How up to date for my company’s needs are the networks I now have in place? Once in business did I make the transition to the new entrepreneurial networks or the extended links that I will need?
     Existing entrepreneurs faced with multiple demands and tight schedules can ask themselves these:
     Is it worth investing the time and energy in order to have this particular net in place for future opportunities when it is needed?  Is there time to cultivate key relationships in this network?  Can I take the risk of not developing this networking opportunity?  (Remember that it may be too late to form the network when the services provided by the members are actually needed). 
     How attractive are the members of the network and the businesses they represent?    What is the network affiliated with that I value? Does the network provide collective opportunities that I can not acquire as an individual business owner? Is there an understanding among network members that we can build each other’s business opportunities?  Is there a sense of exchange among members? If competitors are involved, what is the impact of their size and potential for growth as related to my business?  
     What kind of exciting and intellectual programs is the network providing that I cannot get elsewhere? What do I bring to the table?   What do I offer in exchange for what I gain from the networking experience?   What is the personal payback to my business and my profession?
     What about the size of this network?  Is it the kind of network I need to make the extensive contacts necessary for this stage of my business growth? 
     How many positive answers to these questions are necessary for me to want to become a member of the network? 
     On the basis of intensive research on networking activities among women entrepreneurs I have formulated a self-assessment instrument.  In September I asked each of the entrepreneurs attending the Charleston County Public Library session on “Lowcountry Success Stories—A Network Assessment Opportunity,” to complete the survey.   If you are interested in becoming involved in this anonymous assessment to be treated under the confidentiality research standards of the Academy of Management, please contact the Department of Business Administration at The Citadel 953-5056 and I will send a survey form to you.  Only normative data from these forms will be reported in feedback to build a Lowcountry profile in a future column.