Female Entrepreneurs: If You're Networking Mostly With Women, You're Leaving Money on The Table

As a female entrepreneur, everywhere I go these days there is opportunity to connect with other women in business. Women are escaping from their corporate jobs to go out on their own, stay-at-home moms are looking for ways to make money and in general, women seem to be very attracted to the entrepreneur path. Indeed, there are 114 percent more women-owned businesses in the U.S. than there were 20 years ago.

To go along with this rise in female entrepreneurship, the number of women-focused resources and networks has also increased. But should we, as women, solely focus on these gender-specific groups to take our career and entrepreneurial journey to the next level?

While there is data that shows that networking in women's groups is beneficial in many ways, the problem, especially for female entrepreneurs, is becoming too comfortable, and allowing that comfort to limit our earnings potential.

Here are three reasons why all-female networking may be a revenue trap.

1. You aren’t reaching all demographics.

If you’re a woman in business, are you relying only, or mostly, on female networking groups?  The research says yes. Women are more than five times more likely to have networks that are mostly female, according to the Women in the Workplace 2017 report. The reasons for being part of women-focused network groups runs the gamut -- everything from being a supportive community to feeling empowered and improving confidence.

But if that’s your exclusive source of community, is it in the long term good for you, your career or your business? The same report tells us probably not. “Because men typically hold more senior-level positions, this means women are less likely to get access to people who can open doors for them.” Similarly, when it comes to having doors opened for women in business, we are talking not only about climbing the corporate ladder, but also the economic one.  

If you’re looking to maximize your revenue, it’s time to step out of your comfort zone and start attending mixed-gender networking groups, in addition to your women-only groups. It’s a great way to find your next mentor, referral source, client or business deal.  

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2. You aren’t maximizing your profit potential.

When it comes to the economic side of business ownership, women are still lagging behind. Even though woman-owned businesses accounted for 39 percent of all businesses in the U.S. in 2017, those same businesses were only bringing in 4 percent of the total revenue.  

How does that play into female-only networking groups? By attending only women's networking groups we are potentially cutting off half your potential customers: men.

Networking groups that include males will provide you with a low-cost, low-risk opportunity to discover what marketing messages work with a male market, or even if it it is necessary to have a separate marketing message.  Even better, when you can use a group to make connections that result in trust, tapping into these newly-formed relationships can help you discover angles and areas of business you might be missing out on.

3. You aren’t informed about market opportunities.

The effectiveness of your pitch for your product or service with both men and women tells you about the value of what you have to offer.  Nail it in both groups, you can't go wrong, and you can then see the potentially exponential results of opening avenues of untapped revenue, and a valuable improvement to your marketing messages, including having men as advocates for your company.

A macro example of this is the cosmetic industry and its realization that traditional "for women” companies are opening up their campaigns to men, and are tapping revenue sources previously unknown. And rightfully so. The male grooming market is expected to grow to $60.7 billion by 2020, up from $17.5 billion in 2015. Companies that have failed, and continue to fail to recognize the marketing and sales potential will lose out on a bonanza.

In my own experience coaching business leaders, focusing on both genders in my client marketing and networking efforts results in a much higher return on investment, as men can, of course, be very good clients and willing to invest in themselves. Specifically, targeting men as clients in my company brings a 30 percent revenue boost.

As I stated previously, one of the greatest benefits of a networking group is that it is a low-cost, low-risk place to learn what marketing messages work, for both women and men.

I’m not advocating that you give up your woman’s networking group, or that you give up focusing on a female demographic as clients. However, when strategizing for your short- and long-term business goals, consider the many economic benefits of having access to men as clients and/or as referral sources will bring to you and your company.

Source: https://www.entrepreneur.com

Image Credit: Hero Images | Getty Images

ABOUT WNFP
Westchester Networking for Professionals (WNFP) is a business organization focused on providing our members and guests with an extraordinary networking experience, bringing business professionals together for the sole purpose of generating new relationships and developing new business opportunities. Not a member, learn how you can become a member and join this awesome group of professionals to connect and grow your business.

Stay Connected with WNFP!

The 5 Types of Business Networking Organizations

Business professionals who don't have a lot of spare time often ask us which networking groups provide the biggest bang for their buck. There are five main types, and what works best depends on the business they're in and the prospects they want to meet.

Here's a quick rundown of the most familiar types.

1. Casual contact networks

These are general business groups that allow many people from various overlapping professions. These groups usually meet monthly and often hold mixers where everyone mingles informally. They may also hold meetings where guest speakers present on important business topics or to discuss issues concerning legislation, community affairs or local business programs.

The best examples of these groups are the thousands of chambers of commerce active across North America and elsewhere in the world. They offer participants an opportunity to make valuable contacts with many other businesspeople in the community. By attending chamber events, you can make initial contacts that will be valuable in other aspects of developing your referral business.

But, because casual-contact organizations aren't tailored primarily to help you get referrals, you have to exert effort to make them work. For example, you can volunteer to be a chamber ambassador, a position that that requires little time commitment but provides much exposure. Sitting on committees helps you get to know members better. Most of all, you need to attend events regularly so you can take advantage of every opportunity to strengthen the relationships you form.

2. Strong contact networks

Organizations whose purpose is principally to help members exchange business referrals are known as strong contact referral groups. Some of these groups meet weekly, typically over lunch or breakfast. Most of them limit membership to one member per profession or specialty.

Strong contact networks provide highly focused opportunities for you and your associates to begin developing your referral marketing campaigns. You won't meet hundreds of business people in this type of group, but all the members will be carrying your business cards around with them everywhere they go. The net result is like having up to 50 salespeople working for you! With a program like this, you'll be establishing powerful long-term relationships that will prove invaluable.

If you're considering a strong-contact group, you'll want to keep a few things in mind:

• You need to have a schedule that lets you attend all or almost all of the meetings. Regular attendance is vital to developing a rapport with the other members of the group and getting to know their businesses.
• You need to feel comfortable going to a net­working event and being on the lookout for prospects who can help other members of your group. A good strong-contact networking group typically tracks the amount of business that's conducted. If you're not "pulling your weight," you'll be asked to leave or referrals will stop coming your way.

3. Community service clubs

Unlike more business-oriented groups, service groups aren't set up primarily for referral networking; their activities are focused on service to the community. However, in the course of giving time and effort to civic causes, you form lasting relationships that broaden and deepen your personal and business networks. If you go in not to benefit but to contribute, the social capital you accrue will eventually reward you in other ways and from other directions -- business among them.

4. Professional associations

Professional association members tend to be from one specific type of industry, such as banking, architecture, personnel, accounting or health. The primary purpose of a professional association is to exchange information and ideas.

Your goal in tapping into such networks is to join groups that contain your potential clients or target markets. A simple procedure for targeting key groups is to ask your best clients or customers which groups they belong to.

Many groups limit their membership to those who have specific industry credentials, and vendors aren't welcome. However, to generate more income or to give their full members a well-rounded slate of potential vendors, a growing number of associations have created an associate member category, whose members aren't active in the business or profession for whom the group was formed.

In these type of networks, we recommend you stand out by finding ways to help without selling to members. As an example, if you were a social media consultant and joined an association of professional business coaches, rather than trying to "sell" them on your services, how about volunteering to run the association's social platforms? Taking charge of their Facebook and LinkedIn pages would be a great start toward building relationships and showing them your value.

5. Online/social media networks

From a business perspective, the ideal use for social media is to build your brand and your credibility with the people you're connected to by providing value for your connections and followers. Whether you're talking about face-to-face networking or online networking -- credibility and relationship building is still critical to the process.

With social media, the key to success is outlining a strategy that considers the amount of time you can realistically dedicate to your online marketing efforts and being consistent. Map out a weekly schedule that outlines specific days and times you'll spend developing your social media strategy. Figure out what's realistic and what makes sense for your company, and go from there.

Once your strategy's in place, you'll no doubt be anxious to start seeing a return on your social media investment. It's vital to remember that networking is more about farming than it is about hunting, whether online or face to face. It's about cultivating relationships with people. It's about building the credibility of your brand and that doesn't happen overnight.


Source: https://www.entrepreneur.com/
Image source: Getty Images

ABOUT WNFP
Westchester Networking for Professionals (WNFP) is a business organization focused on providing our members and guests with an extraordinary networking experience, bringing business professionals together for the sole purpose of generating new relationships and developing new business opportunities. Not a member, learn how you can become a member and join this awesome group of professionals to connect and grow your business.

Stay Connected with WNFP!