Networking groups: A double-edged sword for success
Weighing the pros and cons
By Kristy Gusick, Align Marketing Group
August 8, 2023
One the most common questions I get asked by accounting professionals is: I was invited to join a networking group, should I join it? Will it be worth my time?
This is never a simple question for me to answer because each group is unique with its own members, focus, schedule and purpose. For that reason, I’m going to share the advantages and disadvantages of being part of a networking group and provide tips to help you determine next steps when it comes to deciding about networking groups.
Networking groups can serve as valuable platforms for accounting professionals to foster connections, collaborations, and relationships across their industry. By becoming part of a professional group, it’s possible to form strategic professional relationships, but they should also be mindful of potential drawbacks. And for those looking to start their own networking group, meticulous planning and preparation are key to ensuring group success.
Let's consider the pros and cons of joining a networking group, exploring each aspect in detail.
Advantages to Joining an Existing Networking Group
Joining a Business to Business (B2B) networking group presents accounting professionals with a plethora of advantages, ranging from increased leads and referral opportunities to the exchange of ideas and potential business partnerships. These groups offer a platform for connecting, collaborating, and building relationships within their respective industries, fostering trust, credibility and heightened visibility in the market.
There are multiple benefits of joining a networking group such as:
- Lead Generation: One of the primary benefits of joining a networking group is the increased access to potential clients and partners. Such connections can significantly boost the chances of generating quality leads for your business.
- Referral Opportunities: Members can refer each other to their clients or contacts, which fosters trust and credibility. This mutual support can lead to a positive impact on everyone's business.
- Exchange of Ideas: Networking groups often host events, workshops, and seminars where members share their industry insights and best practices.
- Business Partnerships: Collaborating with fellow members can lead to fruitful partnerships, enabling companies to pool resources and expertise. By working together, businesses can tackle larger projects and take advantage of each other's strengths.
- Increased Visibility: Active participation in a networking group enhances a company's visibility in the market. Businesses that interact with other professionals and share their expertise attract new opportunities and potential clients.
Drawbacks to Joining a Networking Group
Despite its numerous benefits, joining a Networking Group comes with potential drawbacks such as the time commitment, membership fees that may burden small businesses, the possibility of facing competition from fellow members, inconsistent value depending on the group's organization and engagement, and limited diversity in represented industries.
Before joining a networking group, closely evaluate their expectations and structure in the following aspects:
- Time Commitment: While being part of a networking group can be rewarding, it also can demand a significant time commitment. Look at the networking event schedule and consider the time and resources needed to attend and engage with members.
- Membership Fees: How much does membership cost, and what are the benefits?
- Competitive Environment: In some cases, members of a networking group may find themselves competing within the same industry niche. This situation can lead to potential conflicts of interest and requires navigating carefully.
- Inconsistent Value: The benefits of networking groups can vary based on the organization, leadership, the quality of its members, and their level of engagement. Some groups may offer substantial value, while others might not be as impactful.
- Lack of Diversity: Certain networking groups may lack diversity in terms of represented industries or parts of the industry. This limitation can restrict potential connections and opportunities for members.
How to Start Your Own Networking Group
One way to get a lot of value out of a networking group is to start your own group. This strategy allows you to curate a selective community of strategic partners, referral sources, and potential clients, providing the specific opportunities you’d like to grow your business and professional development. Creating a well-structured group tailored to your professional goals can foster very valuable connections, enhance visibility, and pave the way for significant growth and success. I’ve started several groups in the past for myself and have also helped clients start their own groups, all of which have been very rewarding experiences.
Here are some tips for starting your own networking group.
- Prep Work (allow 1-3 months):
- Identify ideal referral sources and A-Level clients/prospects.
- Create an elevator speech and differentiate your offerings.
- Research and learn from relevant blogs, books or resources on strategic partnerships.
- Step One - Networking with Referral Sources (allow 8-10 months):
- Meet with other professionals over coffee or lunch to assess their work and their fit as referral partners.
- Schedule regular meetings with these potential referral sources and evaluate the viability of continuing the relationship. Aim to meet at least four times before considering them as formal strategic partners.
- Plan each meeting with a specific topic or objective in mind.
- Take notes, track progress and seek guidance from colleagues or mentors.
- Narrow down your list of strategic partner referrals to 6-10 viable sources for a strong networking group.
- Step Two - Creating the Networking Group:
- Develop a structure for the group, including meeting frequency, timing, and potential members.
- Hold meetings consistently (I recommend once a month) with attendance requirements and limited guests to maintain exclusivity.
- Organize structured meetings with introductions and presentations.
- Encourage members to make introductions between meetings to enhance collaboration.
- Consider inviting top referral sources and potentially appointing a co-leader or assistant chairperson.
- Have a written plan for the first 6-12 months of meetings, including priorities and topics for each session.
Final Considerations
As you can see, deciding whether you should continue your involvement in a networking group – or start your own – is not a quick answer. While networking groups can offer substantial benefits to accounting professionals, you should carefully evaluate the time commitment and financial implications before you join or start one. You want to be able to join a group with confidence, a commitment to digging in, and positive expectations. By evaluating a group prior to joining and continuing to assess its value over time, you be able to more easily determine whether a networking group is right for you.
Kristy Gusick is the founder of Align Marketing Group where she and her team specialize in supporting accounting and financial advisory firms with their marketing initiatives. You can reach Kristy at kristy@alignmarketinggroup.com or at 651-592-4662.
