A major part of building a business today involves developing long-lasting relationships with clients. As a result, showing up at a social event and handing out business cards to anyone there has been replaced by a more strategic approach to networking that focuses on maintaining existing relationships while building new relationships with new contacts.

“While it is possible to service an existing book of business without having to commit to a significant amount of networking,” says Jamie Welsh, senior manager of audit and advisory services with Deloitte & Touche LLP in Halifax, “I believe active networking is crucial for anyone who is developing or building a business.”

Financial advisors have been networking for decades. But the traditional approach is quickly being replaced by what many call “value-added networking.” It is no longer enough simply to turn up at a social gathering; you must bring value to the relationship, says Chris Hornberger, a partner with Halifax Global Inc., a management consulting firm based in Nova Scotia.

“Networking is about helping your client or prospective client understand how a problem could be solved,” she says, “or how you could help them meet their goals.”

This could be something as simple as offering your boardroom to a new contact who mentions they are looking for an off-site meeting spot or it could be something more involved, Hornberger notes. For example, if your new contact is active in a local charity that is about to hold a fundraising event, you could offer to forward information about that event to your contacts.

The “old” networker sets people up to buy a product or service, as the Halifax Chamber of Commerce noted in a recent issue of Business Voice, its member magazine. The “new” networker sets people up with other people. For example, if you are introduced to a new contact who mentions that he is starting a new project in what is a new field for him, offer to introduce him to clients you have in that sector. Although there is no direct business in this for you as an advisor, there is appreciation. And that appreciation breeds confidence and enhances a deeper, long-term relationship with this potential client, which is the primary goal of networking today.

The old networker invites people to schedule a meeting with him or her; the new networker invites people to other events.

Such an event might be a local business luncheon with a high-profile speaker, for example. To sweeten the offer, you could invite your contact to bring a colleague — thereby expanding your network. But even if everyone around the table is an existing contact, you are still networking. You are cementing the relationships with your guests, who will be telling their friends and colleagues about where they are going and why — and, hopefully, describing the event in a positive light.

It’s important to remember that not all clients are interested in socializing with their advisors. Pat Ross Woodford, a retired small-business owner in Beaver Bank, N.S., isn’t interested in going to lunch with her financial advisor, or with another professional who is prospecting for business. “That takes up my valuable time,” she says. “And if the purpose is only to chat, I have other, more important things I need to be doing.”

Although some clients enjoy a lunch, others would rather see you put your money to better use. Woodford, a former style consultant, says she would rather receive a useful gift, such as a Daytimer, from her advisor once a year — something that lets her know she is thought of and valued.

“Time is a precious commodity today,” says Hornberger. “And if you are going to ask people to give up their time, you better make sure they get something worthwhile in return.”

Men and women have different approaches to networking — as well as different comfort zones. “Women are more likely to do something after work that is community-based, such as inviting clients and prospects to join them at a table they’ve purchased for a charitable event,” Hornberger says. “Men are more likely to take someone golfing during the day.”

There are no set right or wrong ways to network.

“Everybody can [network], and they need to do it in their comfort zone,” says Ed Poll, a consultant in Venice, Calif. “You need to enjoy it.”

@page_break@You also need to ensure the client or prospect enjoys it. “Men and women, younger individuals and older individuals, don’t necessarily like the same activities, gifts or opportunities to connect,” Hornberger says. “Advisors need to make sure their networking efforts are appropriately targeted to the individual in question.”

Indeed, networking can yield powerful returns if it is approached correctly and done for the right reasons, says Welsh: “The best networkers I know are sincerely curious people.”

So, if your networking efforts
reveal a genuine interest in people, you are likely to achieve your objectives. IE