Are you harnessing the full power of the “network effect”?

During times of economic uncertainty, clients depend on strategic business advisors more than ever. Chances are, you’re doing all the right things; you understand your client’s business, you have optimized your suite of products and services, and you have provided excellent strategic advice across your domain of expertise. So, what else can you do to provide even more value and build stickier relationships?

Are you familiar with the power of the “network effect”?

The concept of the “network effect” originated in the tech space, and refers to the phenomenon where the value of a product or service increases as more people use it. Take social media, for example. Platforms like Instagram or TikTok became more valuable as more users joined and contributed content, despite more niche beginnings.

The network effect also creates economies of scale for companies with large user bases, allowing them to leverage their size to reduce costs and increase profits.

Our personal and business networks work the same way.

We all know it’s impossible to be all things to all people. We learned that in our Marketing 101 class!  That’s why growing a diverse and highly curated personal and business network can be so valuable to your success.

The value of your network increases as you connect with more people. During a job search, the more people you know, the more likely you are to be connected to someone hiring or be provided with a good reference.  As a business owner, a diverse network is more likely to help you get new customers or referrals or connect you with the right subject matter expert.

Have you recently made the effort to expand and diversify your networks?

While we all serve as experts in our unique business domain, have you explored tapping into a broader set of experts that can complement your expertise and provide even more value to your clients?  New connections can instantly unlock resources, insights, and revenue opportunities for your clients with just a simple introduction.  I know we all tend to network with the “usual suspects” like accountants, attorneys, and financial advisors. But have you explored some more “under the radar” experts like:

  • Industry associations and trade groups that can help our clients while keeping us up-to-date on industry trends, regulations, and best practices. These organizations can also provide networking opportunities with other businesses in the industry as we build our expertise.
  • Tech-savvy marketing and advertising agencies that help our clients execute creative marketing campaigns, including digital marketing, social media marketing, and advertising. These agencies tend to work with clients on a high growth trajectory.
  • Human resources consultants that help clients with talent management, including recruitment, training, and performance management. These consultants can help navigate an extremely tight labor market for our clients.
  • Cost procurement experts that help our clients with specific pricing knowledge and expertise in a particular industry or cost category. These experts identify new vendor options, unlock new savings opportunities, and track changing market dynamics.

As a Schooley Mitchell franchise owner, I work across almost every industry. Our cost categories apply to virtually every business. As a result, I am constantly engaged in conversations across a broad set of business topics, trends, and challenges.  I am constantly looking to my network of experts and clients to help me address their diverse set of business needs.

How about we set up a call to discuss how we could collaborate and collectively harness the power of our unique personal and business networks?