Many would argue both.

But first let’s define Business Networking and then discuss what it is and what it is not.

Wikipedia defines Business Networking as a “socioeconomic activity by which groups of like-minded business people recognize, create, or act upon business opportunities”.

Business Networking organizations have created models of referral networking activities, and teach their members, that when followed, these models will allow the business person to discover and build new business relationships which will result in more business referral opportunities.

However, these activities will not give rise to generating business opportunities without the participant successfully building relationships with other participants deep enough where trust is established. The process required before trust can be established is often referred to as the Know Me, Like Me, Trust Me Learning Curve.

Know Me, Like Me, Trust Me.

Like any process, it’s a series of steps where business professionals take the time to get to Know, Like and Trust others before feeling comfortable referring their best clients to.

The Know Me, Like Me, Trust Me Learning Curve takes time to complete. Therefore, Business Networking activities are designed to shorten that learning curve time thus maximizing the participant’s rate of return on invested time.

So how does this referral marketing methodology work?

First, they need to Know you.

It may seem obvious, but people have to Know you exist before they’ll do business with you. They need to be keenly aware of the product and services that you offer. More importantly, they need to understand what makes you and the way you render your services different from your competitors.

Not only must other business professionals be aware of you and your business, but they need to Know what makes you different. They need to answer the question for themselves, “Why should I use you over your competition?”

Secondly, they need to Like you.

Your prospective referral sources need to answer the question, “Would I feel comfortable working with this person?” Unfortunately, many people judge a book by its cover. Therefore, a professional appearance is paramount. Even the roofer, plumber, etc needs to be aware of this when they are out in public doing their business networking activities. Enhancing your appearance will only increase the number of folks who are willing to get to know you better.

But your appearance is only one small piece of getting people to Like you. What you say and how you say it will play a large role in your likability. People are always watching you even when you are not speaking directly to them. Your attitude will determine your altitude in business. People naturally gravitate to likeable people. Always be warm and genuine and folks will see someone they want to get to Know better because they are starting to Like you.

The third step in the learning curve is Trust.

Once someone Knows you exist, recognizing what you offer is different and finds you Likable to the point where they are comfortable speaking with you, it’s time to establish Trust. Many times in the Business Networking environment, the Trust factor is not established without at least a small leap of faith.

A cautious potential referral source may engage your services for them personally before referring you to others. This is called a First Degree Referral. The First Degree Referral is a lower risk proposition than referring you to their clients (i.e. a Second Degree Referral).

This first referral will either establish Trust or it won’t. Most of that will be up to you.

So, is Business Networking an art or a science?

So it can be argued, that Business Networking is both an art and a science. The art is successfully making and developing relationships which is hinged upon successfully navigating the Know Me, Like Me, Trust Me Learning Curve.

The science is creating the best or optimized environment for the Know Me, Like Me, Trust Me process to successfully take place and maximizing the desired outcomes as efficiently and quickly as possible.

From both respects, one thing is clear. People are apt to only do business with people and organizations that they Know, Like and Trust. Business Professionals who learn how to effectively and efficiently use Business Networking as the center piece of their marketing plan will be rewarded the most.

You want to open that store or small business you always wanted to own. You have clearly defined your concept, and identified your ideal customer. You have tested your concept and the feedback is positive. You know what you want to sell and what price. Now you have to find the suppliers who can supply your products. Sounds easy, Right? Nope. Sorry.

Maybe the supplier has an exclusive arrangement with one of your competitors. Maybe the price you thought you could get your products for was a ‘tad’ off compared to your projections in your business plan; and that ‘tad’ forces you to raise your prices; and that increase may not ‘fly’ with your customers. Maybe you are not sure that the supply will be consistent. Ouch! Having a great product at a great price NOT arrive at your back door when you need it is not good for business.

So what do you do? The first thing you have to do is make up a “spec” for each item you want to buy. Let’s take a sweatshirt as an example. You have to know the following:

• What sizes do you require?
• How about colors?
• Blend? 50/50 cotton/poly or 100% cotton?
• Weight? Lightweight or not?

And you have to have a “spec” for each and every item you want to sell. How can you get a quote from a supplier if he doesn’t know EXACTLY what you want? Think of looking for a car. You want it with this and that and in this color with this type of interior. The easier you make the supplier’s job the more likely he is going to want to work with you.

Once you have found the supplier, you now have to negotiate price and terms and although the two are mutually exclusive, the one has impact on the other.

Let’s talk price first. You are the customer here. You can refer to your financial forecast and give the supplier an idea of what sort of volumes you are projecting in your business plan. That will give the person a measure of confidence to see that you have really thought things through. Talk exclusivity. You may not get it; but it’s worth a stab. Ask for a limited geographic exclusivity so the store down the street can’t carry the same products you feature. Try and get the price that you need and be honest. Don’t pretend to be the ‘big’ guy. Be humble. Tell him your price point and make him meet it if he wants the business. Don’t be afraid to say “no”.

Secondly let’s talk terms. The price is one thing. The time you have to pay for the product is something different. The earlier you pay the better price you should be able to negotiate. Net 15 will garner a discount over net 30. Use your power. Use your ability to pay to your advantage. If you have budgeted properly – and you will have in your business plan – you’ll have money set aside for initial purchases and you will use that money judiciously to ensure you get the price and terms you need to keep your costs in line. Well done.