New York, 9th July 2008
Business Development is probably the most important thing in the life of an entrepreneur, after fundraising. However, it is often an issue that an entrepreneur hides behind the fact that he or she is "too busy", whereas it is probably more a lack of comfort with the topic and the entrepreneur in question prefers to work on that discipline that he IS comfortable with, such as product development, innovation and administration rather then sales or marketing.
As a starting entrepreneur, it is key to get your revenue running as soon as you can. It really does help if you, the founder, take the responsibility yourself as potential customers like the idea of talking to the top guy.
Entrepreneurs often have to do a lot of different things simultaneously – we already named fundraising which is highly time consuming, admin, personnel etc. so it is not only important to do business development, but also imperative that you do it in the most efficient way possible. This is where Networking can really help. A comment we often hear is that Networking extensively in itself takes up too much time, which can be true. But then again, the "work smart" technique is something that you can apply very well to networking by making use of the network and credibility of another party – usually know as a "Connector".
Connectors are often local parties, who are well known and accepted in the immediate vicinity, who know all the parties in the area or at least know where to find them. For instance, there are a lot of Pharmaceutical companies in New Jersey – so in that area you will find Connectors that know all the main people in the Pharmaceutical world – even though the industry itself is very closed. Without the right contact – "connection" – you would never get in.
Another good example is Silicon Vally – in itself another very tight Ecosystem in which all parties know each other – be they Technology COmpanies, Venture Capitalists, Angel Investors of a specialized bank such as Silicon Valley Bank. Early in the morning, you can find all of the above in Il Fornaio, a famous restaurant in Palo Alto. During many years, I marveled at the fact that you could walk up and down Sand Hill Road in Silicon Valley and meet all of the top Venture Capital firms like Sequoia, Kleiner Perkins and Draper Fisher. In my experience, if you are trying to find an entry to such a closed community because (as in our case) you are looking for prospective customer amongst the Technology Companies or you want to meet the VCs, you need help f
from the inside or it will cost you years of your life.
I was thinking of the above earlier this week when I was talking with Bob Karr – a great Connector himself. He not only has built a network of over 17,000 members under LinkSV (www.linksv.com) but he knows a lot of these contacts personally and is capable and willing (a rare combination indeed) to put people he trusts together. This is real Networking – with attention to people and a great nose for the right connection between them. If you are looking for contacts in Silicon Valley – you should definitely check it out.
www.linksv.com
www.efactor.com
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