This question came to me from one of my fans on LinkedIn.
When you are initially starting a small business, one of the most important things you must do is cultivate your network. At least 12 months before launching your business you must build up your personal network and start attending networking functions. Reach out to people on social media, send out holiday cards, start having lunches to reconnect, and try to reach out to 5 people in your network each week.
90 percent of all small businesses get business from referrals, so “your network is your net worth” as you start out in business. The last thing you want to do is start calling people you know, but haven’t been in touch with in a long time and try to sell them something. You will appear very transparent to your friends, and you could damage a relationship. You must use the “give to get” mantra and first show people that you care.
“Businesswoman Handshaking” courtesy of adamr / www.FreeDigitalPhotos.net
If you have a question about how to start or grow your small business, I’m always here as a resource, just Ask SmallBizLady!
Hi Melinda-
I just started my small business, writing service to coach students and professionals in strategic writing. The only two forms of insurance applicable to me at this point are General and Professional (E&O), since I do not operate out of a commercial space. I was planning on waiting a couple of months to purchase the insurance, after I have made enough sales to cover the costs. Do you think this is advisable? Furthermore, do you think I need to get incorporated if I have insurance coverage?
I am sole proprietor and I am very clear in my client agreement I am not guaranteeing things beyond my control, like admission into Harvard or getting a specific job offer. That being said, some people are litigious!
Thank you for your thoughts-
Jessica
So glad you asked that question Jessica! I am just starting out as a marketing consultant and was wondering when I should get the E&O Insurance. I wanted to wait until I could pay for it from my business sales rather than out-of-pocket.
Great article Melinda! I am working on expanding my network now. Thanks for the tips!
-Stacy Reed
I am a retired police officer and newbie entrepreneur. My business is a professional vacant home watch. I read your article on how to generate leads. I did not prepare twelve months in advance and have no network. I just went live with my website and have a sign in book and contact form. Any ideas on where to turn for leads?