A VC in Vacationland

Booz Allen Hamilton’s Strategy + Business newsletter contains interesting articles dealing with corporate strategy, but is usually aimed at major companies (read: their current/potential clients).

A recent article, The Craft of Connection by Tim Laseter and Rob Cross, focuses on how companies have built internal networks to foster innovation and growth:

"Article Summary: A growing number of companies, including Chevron, Halliburton, and Whirlpool, are seeking new methods to stimulate innovation and streamline global practices. By mapping the relationships between key thought leaders within a company, executives can bolster innovation by building connections between critical employees — those who offer specific expertise or deep knowledge about the company and industry. By creating a database of these employees and their respective specialties, leaders can draw on the experience of these individuals to help solve problems, increase productivity, and share domain knowledge with others in the firm."

It is an article worth reading by anyone interested in more effective corporate management, but it also got me thinking about the power of networking in start ups.  Let’s face it, in a 10 person start up, there is a lot of internal networking going on as you get the products and services ready for market.  This is critical to your success, but your most important networking is with external people, and not just your customers.

Venture capitalists, investment bankers, analysts, industry gurus, to name a few, are examples of people you need to reach out to in your early years.  Getting the buzz going early about what you are doing is critical to long term success.  If they don’t know about you, they cannot talk about you with others, nor give you any advice.

How do you go about meeting all these people? Networking via your current investors and board members is an obvious first step, assuming they are connected in the industry.  Just emailing or calling people is often effective, some will not want to speak and others will be open to your thoughts and ideas.  You never know until you call or write.

As the article suggests, you may want to create your own external networking map, as a way to see your current network as well as to see the areas where you need to establish new or additional relationships to make sure you cover all the networking bases: 

• Industry gurus, market analysts, venture capitalists in your space, academics should all be on the external networking map you develop.  Review it with a trusted board member or adviser to get additional ideas. 
• Next, use Linkedin or other business networks to see if your friends and associates have any connections to these people or others in their organization. Don’t be afraid to ask for an introduction and be sure you follow up and contact the person.
• Finally, have something to offer these potential new contacts when you do get connected–I spoke with someone the other day who wanted me in his network, and offered to introduce my investments to supply chain leaders in companies he knew well, such as P & G and Unilever. This was a great offer, made me happy to help him with his request, and was much appreciated since it could create value for my companies.