Networking in a Tough Tech Economy

28. Jan, 2009 Comments

Thom Singer

Thom Singer is the director of business development at vcfo. He is also a professional speaker and the author of several books on the power of business relationships and networking. He can be reached at tsinger@vcfo.com.

Establishing long-term business contacts is important to your success. In the small ecosystem that is the Austin Startup / Technology community you cannot avoid networking if you want to make sure that all opportunities come your way. Avoiding the people who contribute to the local tech scene just means that you might be passed by down the line. Out of sight is out of mind.

The viability of your company and your career could depend on having cultivated a personal brand. People do business with those they know and like. It is a person who will bring you your next deal or your next job, regardless of if you are an entrepreneur, an investor, a knowledge/service provider (aka: lawyer, accountant, insurance broker, recruiter, etc..) , a sales person, a programmer, a marketing executive, etc….

While on any given day you may feel too tired to hit the TEXCHANGE event or the Austin Tech Happy Hour, your commitment to being visible in the business community will come back to help you in the future. You cannot forge strong relationships if you only do “drop in networking.” You must have a strategy. Select two or three events or organizations and attend regularly. Treat your attendance like you would treat any other important business meeting.

Over the years I have witnessed start-up founders secure angel or venture funding because of connections they established years earlier by having been an active participant in the tech scene. Executive teams are regularly pulled together based on whom the entrepreneur (and / or the investors) knows directly or via their extended network. Bankers, lawyers, commercial real estate brokers and companies such as vcfo routinely engage new clients that are founded and staffed by those whom they have worked with before.

Networking works. It is an insurance policy for people who realize that they are in the community for the long haul, and that any hiccups in the tech economy are only on the short term horizon. Over time the trust that is built between people will lead to new chances to do business and help each other excel in the future.

Take advantage of this week’s Austin Tech Happy Hour on Thursday at Molotov. You never know who you might meet that will bring you success down the line.