Using LinkedIn to Boost Your Small Business

In the current economic climate, small business owners need to utilize all their connections. Utilizing social networks like LinkedIn can be beneficial, but it is important to manage your expectations. Many times I have heard exasperated small business owners exclaim, “I’m on LinkedIn, but I haven’t gotten any business from it.” If LinkedIn isn’t working for you as a business development tool, it’s time to take a look at how to effectively utilize your network.

LinkedIn facilitates the flow of information, but it is not a magic bullet. Simply posting your profile and accepting a few connections will not net the desired results. Your online network is an extension of your face-to-face network. It is important to get to know people, add value to the conversation, and gain trust. Sometimes you’ll hit it off immediately skip directly to trust. Many times it takes a bit longer to develop the relationship and uncover a potential business need. Remember that there is a person behind each profile. They want to be heard and respected, not just thrown a sales pitch.

There are three key ways to utilize LinkedIn for your small business: Prospecting, Lead Generation, and Partnership Development.

Prospecting. You have a list of companies that you’d like to work for, and you should search for connections among your current LinkedIn contacts to people either employed or previously employed at these companies, suggests Liz Lynch author of Smart Networking: Attract a Following in Person and online. Of course you want to get to a decision maker, but having a conversation with someone at the company can give you insight into the current structure and potential needs that your business could fill. This conversation can help you prepare your approach to the decision maker, and could even initiate an introduction to him or her if your LinkedIn contact feels it’s appropriate.

Lead Generation. LinkedIn should be used to extend your off line relationships. Connect with former colleagues, classmates, associates, and people you meet at networking events. Invite to connect with people you meet who you think have relationships with potential clients. When people who are relevant to your business post questions or new job postings, offer to help out. In order to get a positive response, always find a way to add value. One of the great things about LinkedIn is that the network offers a way to keep tabs on your business contacts without being obtrusive. LinkedIn sends monthly emails with updated information about your contacts so you don’t need to constantly call or email them to “check in”.

Partnership Development. LinkedIn is a great place to find referral partners. Other companies seek out strategic alliances and joint ventures with companies that could serve their clients better. Networking is all about building mutually beneficial relationships. Use LinkedIn to search for companies that service your client’s broader needs outside of what you provide. Then, start a conversation with people about how you can help their business. Don’t be pushy! Don’t rush things because it is imperative that you build trust. Always remember that contacts place their reputation on the line if they refer or recommend you, so it is important that they are comfortable with you first.

Strong relationships lead to strong referrals. Having real world relationships with your online contacts will help reinforce trust, and lead to more business. Meeting someone face-to-face can have an impact, but learning more about their business and having online interaction on a site like LinkedIn can lead to many more effective, targeted and mutually beneficial deals than might be available with physical meetings alone. Thus, anyone who needs to build initial contacts and maintain relationships will find it useful as a communication method. Just make sure to consider the person behind the profile and you’ll be building new quality relationships online in no time.