Trust, Networking, Time and Cash -Do You Trust Easily?
When do you decide to start or stop trusting someone in business?

Fundamentally, trust is about safety that stems from predictability. Because we’re better able to predict the behaviour patterns of those closest to us, we tend to trust them more. That’s one reason why the infidelity of a partner feels like such a devastating betrayal; the aggrieved partner feels that their trust has been misplaced and they feel, suddenly, that they’re unable to trust their own judgement.
We always trust our enemies, but in a different way. We trust that if they CAN get us, they will.

When do you decide to start or stop trusting someone in business?

Trust is encouraged in small business networks (that is, networks set up for small businesses) because without trust no one will do business with anyone else in the network and the network itself will become the subject of distrust. It can also be viewed as a money-sucking machine that exists only to bring new people into the network so that they can be relieved of a subscription fee.

Obviously there’s a small element of truth in that, because running any networking organisation requires funds and infrastructure. Many small business owners are struggling to make ends meet but still like attending high cost networking events in the hope to gain much needed income. Some groups complain the only people making money in them are those actually running the networking business itself.

The Power of One

What the network businesses often fail to factor in is that we, as business owners, are also people. Many business owners are actually the entire business, but as they set up as a limited company they also hold a directorship, so that’s usually how they introduce themselves.
“I’m Michael, Managing Director of Michael Prent – Medi-Grommets Limited.”
You know at this point that you’re in front of Michael Prent, even though he hasn’t fully introduced himself.

What’s your first reaction? Do you trust him? Why should you? You can trust that he is who he says he is, but how far are you prepared to extend that trust? Would you extend credit to him without a credit check on his business?

Let’s try taking this completely imaginary conversation further. After you introduce yourself by only giving your name, he asks,
“What do you do?”

Your answer at this point could go either way. If your business is something that he understands conceptually, you’ll be in calm water. If it isn’t he may become uncomfortable because of his lack of knowledge. If he has an enquiring mind he’ll find you interesting and want to hear more, but that’s an increasingly rare thing so he may spot ‘someone I need to have a word with’ across the room.

Trust is something that needs to develop over time.

It can, eventually, happen in a networking environment, but don’t expect to instantly make new contacts who will buy what you have to offer. Do expect to have to invest large chunks of cash and time into visiting the networking meetings often and building up rapport, friendships and feelings of belonging, being known. Weigh this up against what your time and cash spent networking face to face could be doing for you in more direct ways of building traffic to your business.

This is an inherent problem as those interested in business networking as a concept but who have grown up in the developing information age arrive with the expectation of instant results. When they fail to secure an order at first meeting, they decide that they’re in the wrong place.

Networking is an investment and if cash is short and time is plentiful by all means go build a network, just keep the cash figures low and attend a few to see which ones gel the best. Selling through the room is a phrase bandied about a lot, it means don’t judge the opportunities offered by speaking to random strangers, you never know who they know or who they may introduce you to. Key word here is random, it’s not direct selling, it’s not selling at all, it’s building relationships. Keep it clear in your mind that in the early years of growing your business you need to sell. That means not just relying on networking to bring in cash to your business, take clear direct action too in focused sales and marketing activities as networking is the slow long game to new work, you can never hot – house it.

If you need money fast, put your time into earning it, selling and bringing in work, networking is long haul stuff – ‘cos we don’t trust and buy fast from people we have just met.
We repeatedly see this instant results mindset in business plans written by start up business owners:
Year 1 – Turnover £300,000. Gross Profit £190,000. Net Profit £100,000.
Very often the marketing budget is either non-existent or sufficient only for a discount flight to Malaga.
No matter how fast the information stream you follow, building trust takes time that many are reluctant (or unable) to give.
Losing someone’s trust is a much faster process.