Module 4 Session 2 Networking

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MODULE 4
SESSION 2:
NETWORKING
Elmer A. Lorenzana, MM Module in The Entrepreneurial Mind

August 2020 Bicol University College of Business, Economics, and Management – Entrepreneurship Department
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What Is This Session About?
This session will provide you the importance of networking in organizing and starting your
business. When you start a business, you need social network that will assist you for any difficulties that
you may encounter in your start-up activities and even as you progress with your business.
You also need to get correct information for your business decision. This can be easily acquired if
you have wider social network in your local areas. Now that we have advanced technology that enhances
social network with people, we connect with people, we get information, we try to screen the accurate
information, we use them for any decision making in starting our business and improving our business.
What Will You Learn?
In this module, you are expected to explain the benefits of networking using the Five-Link-to-the-
President Principle to widen your network, describe how to maintain relationship with your social network,
and how to enlarge your social network.
What Do You Already Know?

Most people in the Philippines are familiar with
Facebook. You have revived your connections with
your old friend and met new friend through
Facebook. It seems that for most people, Facebook
has become part of their daily lives.
Let’s Reflect
• How many friends do you have on Facebook?
• How many of them are your real friends that can
assist you in your business endeavor?
• What do you think is the use of Facebook in establishing business network?
Let’s Study (Input):

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A big social network can help you to access the following resources: financial capital / cash; other
resources such as equipment, facilities, etc.; information, advice, and ideas; reputation (prominent strategic
alliance partners) and; encouragement / (emotional) support when facing problems.
Think of people that you know and that might be helpful for your venture! Ties with other business
persons such as top managers at buyer firms (distributors), at supplier firms, at competitor firms;
membership in trade organizations, chamber of commerce, Small Business Development Centers, industry
associations; group activities of start-up colleagues / entrepreneurs, formal and informal gatherings of
entrepreneurs, contact to business communities & owners, business networks; customers research institutes;
financial institutions, banks; law firms, lawyers; business consultants, external accountants; political leaders
in various levels of the government; officials in regulatory agencies and supporting organizations such as
tax bureaus, state banks, commercial administration bureaus; and family members, relatives, and friends.
The 5-Links-to-the-President Principle
We know almost everybody through intermediaries. This can be explained via the 5 links to the
president. This could be explained by the following example: You to 1) your father to 2) the colleague of
your father to 3) his wife to 4) the sister of the bodyguard of the president to 5) the president. However,
you have no idea who’s who (what kind of contacts) with what (types of resources). But if you spread the
news, people with interesting networks can come to you! Let as many people as possible know that you
are starting a business. The news will spread.
How to get in contact with all these people? The 5-Links-to-the-President Principle: Who knows
the president? Who knows a person who knows the president personally? Who knows other very important
persons (VIPs), celebrities, influential people? Who knows a person personally? Who knows VIPs or the
like?
Taking a short-cut to the president is through super-connectors. Super-connectors are people with
relationships to many other people. Getting in touch with super-connectors means getting in touch with a
variety of people. Identify super-connectors & get in touch with them.
How to Maintain Relationships?

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This is by building a trustworthy relationship. Tell both sides of the story (the best, worst, most
likely). Reliability and credibility: Fulfill your obligations and deliver on your promises and commitments.
Listen to others’ concerns and take them seriously. Show that you have other people’s interests in mind.
Predictability and consistency: No actions that negatively surprise. Mutually acceptable and integer actions:
Do unto others as you would have others do unto you (friendliness, discretion, and honesty).
Actively and Persistently Enlarging the Social Network
What contacts might be helpful for you right now? Who else might be helpful? What non-obvious
people might be helpful? Who will you contact? How, when and where can you approach them? What else
can you do to approach them / what will you do if your first plan fails?
What contacts might be helpful for you in the future? Who else might be helpful? What non-obvious
people might be helpful? Who will you contact? How, when and where can you approach them? What else
can you do to approach them? What will you do if your first plan fails?
Networking: The Principles of Action
You need to build a broad social network. Remember that you will need people – if not now,
certainly in the future. Let as many people as possible know that you are starting a business. Tell the people
about your idea and the industry you are in.
You must maintain your social network. Keep records of your contacts. Establish trustworthy
relationships through showing reliability, credibility, respecting and considering the other’s interests, and
integrity.
Let’s Think About This
Given all those concepts of networking as a helpful tool in starting and expanding your business
operation, answer the following questions:
1. What is the 5-Links-to-the-President?
2. Why is it important to identify and link with super connectors?
3. Why do you need to expand your social network?

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Let’s Try This
Keeping records to maintain and reactivate relationships: Make notes of whom you meet with
important information (e.g., name, position, contact details, access to). Get business cards. Note down
intermediaries or paths how you can re-contact with a certain person.
Name Position Contact Details Has access to Can be accessed

(& institution) (mobile, e-mail) (resources, via (person)
persons)


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Elmer A. Lorenzana, MM Module in The Entrepreneurial Mind

What Is This Session About?

What Will You Learn?

What Do You Already Know?

Let’s Study (Input):

Elmer A. Lorenzana, MM Module in The Entrepreneurial Mind

The 5-Links-to-the-President Principle

How to Maintain Relationships?

Elmer A. Lorenzana, MM Module in The Entrepreneurial Mind

Actively and Persistently Enlarging the Social Network

Networking: The Principles of Action

Let’s Think About This

Elmer A. Lorenzana, MM Module in The Entrepreneurial Mind

Let’s Try This

Name Position Contact Details Has access to Can be accessed

Elmer A. Lorenzana, MM Module in The Entrepreneurial Mind

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