In the last week, I received two related questions from solo-entrepreneurs; one involved asking friends for referrals, and the other dealt with broaching business in a social setting. Let's take a closer look at these issues and how best to tackle them.
Friends and referrals
Let's start with the first question. Specifically, the solo-entrepreneur approached me and said, "Bill, I have a number of friends, colleagues, and other contacts with whom I have positive, credible relationships. They know something about what I do, but I haven't done business with them. Some of them may be aware of clients I serve and are 'impressed from a distance.' Is there anything I can do to responsibly seek referrals from them? If so, what is the best approach to take?"
OK, so the goal is to successfully glean referrals from friends. One of your biggest hurdles is that friends haven't directly experienced the value of your work - basically, you're not yet "referable" in their eyes. How do you clear this hurdle?
Clearly, the best solution would be to convert these friends to clients, assuming they fit your profile. But let's assume that's unlikely to happen in the near future. In that case, the best approach is simply to steel yourself to sit down with them, at a time and place convenient for them, and let them know what you're trying to do. When you call to schedule your meeting, tell them that you have some ideas for expanding your business and that you'd like to solicit their input on your ideas, because you value their judgment and help. You'll probably want to buy them a meal or cover a round of golf. You may also need to assure them that you're confident they'll be able to assist you, as some may express doubts or reservations.
At your meeting, you'll want to demonstrate two things: the importance of the work you do, and the value you bring to others. The best way to accomplish this is to tell stories, share anecdotes, and provide case studies. Most salespeople, and all solo-entrepreneurs are salespeople, overlook the effectiveness of these tools in helping to demonstrate the importance of their work and the value they bring to their clients and customers. Tell your friends about the process you employ with your prospects and clients - and be specific. Give them examples that clearly demonstrate how you've helped clients solve particular problems, prevent other problems, and take advantage of opportunities. Think "problem-solution, problem-solution."
Now you're ready to employ the following four-step process for asking for referrals. Here it is, with a brief sample script attached to each step:
Confirm your value. "George, are you beginning to see the tangible value we bring to our clients?"
Treat the request with importance. "Great. With that in mind, I have an important question to ask you."
Get permission to brainstorm. "I'm hoping we can take a few minutes to brainstorm about people you think should know about the work I do. Can we try that for a minute?"
Suggest names and categories. "For instance, I think your business partner, Barbara, might be a great candidate for the work we do. Would you consider introducing me to her?"
Approaching your friends is really as simple as that. Again, what's crucial is zeroing in clearly and quickly on the value you bring to the table - that way, you make it clear that you're asking for assistance as part of your ongoing efforts to help others. And of course, if you do a good enough job of conveying your value, you might find that some of your friends and family members are interested in becoming clients as well.
Bridging the social-professional divide
Now let's move on to the second question. The second solo-entrepreneur said: "I've been meeting some people for golf over the last few months. We're not close friends yet, but we get along very well. Some of them would probably make great clients. I'm not sure how to approach them for business. Any ideas?"
As always, you'll want to be honest and straightforward. The difficulty lies in how to raise the topic of business with people you don't yet know that well. In most cases, you'll want to take a soft approach. Here's a short script to illustrate this strategy:
Solo-Entrepreneur: "George, there's something I've been wanting to talk to you about, but I've felt uncomfortable bringing it up here on the golf course."
George: "What's that?"
Solo-Entrepreneur: "I do very important work for successful people like yourself. I was hoping I might be able to approach you in a 'business mode' to see whether I might be a valuable resource for you. May I give you a call at your office to begin a business conversation with you?"
George: "Sure. Here's my card. Tell my assistant that I asked you to call me. She'll make it easier on you that way."
Of course, you'll need to find the words that ring the truest for you and your personal style. But the point is to allude upfront to your awkwardness and desire not to damage the relationship in any way. Sincerity always opens doors faster and more easily than indirect sales techniques.
© Copyright 2004, Bill Cates.
