September 30, 2022

How Entrepreneurs Can Increase Funding Through Networking

Although networking might be intimidating, every entrepreneur understands its value, especially when acquiring financing. Networking is a valuable tool for entrepreneurs. It can provide numerous benefits on both an individual and a business-wide basis, whether you’re looking for new clients or learning new skills.

Owners can use networking to keep themselves and their businesses on the cutting edge of their industry. It can also be a lifeline for finding new investors during the initial and expansion stages. Try Payday Champion and these three tactics to help you get the most out of your networking efforts, especially if you’re looking for finance or investments for your business:

Don’t give up if you’re having a bad day

When you’re attempting to attract investors, networking can feel like a lot of labor. You’ll need to locate the appropriate tools. You should also put money into the proper relationships. Even if you match those standards, you may discover that your attempts to solicit funding are frequently unsuccessful.

Remember that you’re not alone if this happens to you. There are many people out there that are in the same boat as you. They, like you, are stepping outside of their comfort zone in search of professional connections that will benefit both parties in the future. You, too, can endure if they can.

Above all, keep yourself from being discouraged. A lawyer turned entrepreneur, Ryan Clements, suggests re-framing failure as a learning experience. If a networking attempt doesn’t go as planned, you might try again with different connections, pitches, and possibilities. Examining what didn’t work in one networking setting will help you improve your performance the next time.

Guard your emotions against disappointment while setting up virtual networking equipment and developing methods; the willingness to keep trying is crucial. If you can achieve that, your well-prepared, intelligent, and careful networking efforts will eventually bear financial fruit and likely many other rewards as well.

Define your networking objectives.

When it comes to goals, you’ll need to establish a strategy to be successful in your funding-focused networking. This might help you modify your networking activities to guarantee that they consistently attract possible investors. The following are some practical networking objectives:

Finding specific possibilities for your “ask.”

You’ll also want to learn to understand when a good time to submit a financing request is and when it isn’t. If you’re working with a busy entrepreneur, now is not the time to interrupt your collaboration to make your pitch. Send an email or schedule an online office hour session instead if you wish to approach them about funding a new project idea.

While your ultimate goal is to secure capital for your business, you must first achieve several intermediate networking objectives. It’s critical to define goals in advance, from who you network with to what you say and when you say it.

Streamlining your delivery

Networking should never be viewed as a show. It should have a natural and organic feel to it. 

However, because asking for money can make anyone uneasy, practicing your pitch is a good idea. Take some time to perfect your pitch. Remove any extraneous information and practice being succinct. Find the numbers and information that really matter. Get used to communicating in both online and face-to-face situations.

Concentrating on high-quality connections

Quality should always take precedence over number when it comes to your network. 

BDC’s Calgary Entrepreneurship Centre’s Bonnie Elliot advises fostering “the movers and shakers” of the business sector. Not the 50 casual contacts you may make at some random event, but these hyper-connected individuals can direct you to the professional mentors and financial sources you require.

 Incorporate virtual networking into your strategy.

Networking used to be primarily an in-person activity. On the other hand, virtual networking has become an acceptable and widespread approach to connecting with other professionals.

The latest public health crises accelerated this trend by injecting steroids into everything virtual. 

Not only did the pandemic increase the requirement for distant labor, but shelter-in-place orders and social distance mandates did as well.

Industry behemoths like LinkedIn, Twitter, and Facebook have satisfied some of these needs by addressing various virtual networking requirements. LinkedIn is an excellent place to find professional knowledge online, while Facebook is great for group discussion and information sharing. Twitter is a great way to stay up to current on industry news. These older platforms, however, are far from the only options.

Upstream, which began in October 2020, is one platform that is trying a fresh approach to forming virtual business contacts. 

Upstream’s headline feature is the Professional Ask, rather than aiming to compete with LinkedIn’s “Rolodex” capabilities. You may put your request out there and receive a response whether you’re looking for a new marketing manager or a seed round. The platform has proven to be a successful means of raising funding for entrepreneurs.

There are various ways to accomplish your virtual networking goals, from uploading rsums on LinkedIn to joining Facebook interest groups. Investigate your choices so you can begin making contacts in the search for financing and assistance.

Conclusion

Funding for your business won’t just appear out of nowhere; you’ll have to put in the effort to find it. Networking is an essential part of that quest, and if you follow these guidelines, you’ll have a better chance of succeeding.