Establishing a new business depends a lot on the social networks that an entrepreneur is able to establish. In fact, finding finances and start up capital for the business depend on the entrepreneurs networking ability.
Networking is not only about meeting a whole group of people and exchanging business cards with them. It is about a lot more. It is about establishing a trust between an entrepreneur and a business investor.
Effective networking is about building relationships with others who can refer you once they have come to trust you, have confidence in you and feel loyal to you. This process takes time. There isn't a singe fool proof system for successful networking.
The single most important factor for an entrepreneur to realize in networking is that it takes times. Building relationships takes time. No investor is going to agree to provide startup capital for a few million without interacting with the entrepreneur and feeling confident about the business proposal and the business owner.
Of course, some people can get lucky and meet an investor who is so impressed by a business idea that he decides to offer startup capital immediately. But this is usually a fluke.
There are some business etiquettes that an entrepreneur needs to observe while doing business with an investor. If the entrepreneur is considering business in a foreign location then differences in cultures should be considered. An entrepreneur who is setting up a new business overseas should be prepared for some particular cultural differences that can affect the way an employee works or networks with one another.
When networking, it is imperative for an entrepreneur of a new business to understand the subtle, unspoken dynamics of personal space in every culture. There are three basic separations to consider when taking personal space into account. For Americans, they typically are: public space (ranges from 12 to 25 feet), social space (ranges from 4 to 10 feet), personal space (ranges from 2 to 4 feet), and intimate space (ranges out to one foot).
The use of slang should also be avoided by an entrepreneur, especially when networking with an investor for a new business proposal. The problem with slang is that not every body may understand it. In addition, some people may consider it offensive.
Networking takes finesse and knowledge of the culture in which the entrepreneur is networking.
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