Doing business the old-fashioned way

Published 5:00 am Monday, July 30, 2007

When it comes to business networking, you never know whom you might meet, and whom that person might know.

Networking builds business — a philosophy upon which the world’s largest business networking organization, Business Network International, was founded 22 years ago. Known as BNI, the organization now has about 100,000 business people as members, including many in Central Oregon.

BNI lists 4,700 chapters in 37 countries — all fostering the sharing of ideas, contacts and referrals among business people.

On a recent Wednesday morning this month, nearly 30 local business men and women gathered for their weekly BNI meeting at 7 o’clock sharp at the Bend Senior Center.

“We run this like a business, our focus is about business,” explained Joyce Nihoul, BNI Central Oregon area director. “The Rotary Club is about service, we’re strictly business development.”

Business development is built around strong networking, Nihoul says.

Members liken networking to farming more than hunting, saying it’s about cultivating relationships and trust with other business professionals.

BNI’s rules are the same in every country and city. Each chapter can have only one person per professional classification or specialty. For example, a chapter could only have one builder, one hairstylist and one publicist.

Within each chapter, every member carries a BNI business card folder filled with cards of their fellow chapter members. They can pull out a chapter member’s business card at any time and hand it out as a referral.

This old-fashioned way of doing business has proven effective and lucrative, members say.

Joanie Moore, BNI Bend chapter treasurer, announced to the group that $14,600 worth of business was generated within the chapter from referrals in the prior week.

“We call this part, ‘Show me the money,’” Moore said.

“So far, for the year we’ve done $132,641 in referrals and our goal is to exceed a quarter of a million dollars by year’s end, which is what we did last year,” added Moore, an insurance agent. “This shows our members that the referrals do work.”

Globally, BNI’s Web site, www.bni.com, reports 4.9 million referrals were made last year that resulted in about $2 billion worth of business for members.

Members swear by this simple, low-tech way of doing business: having a business card at the ready. That card often leads to multiple referrals, they say.

The Internet cannot replace personal relationships with customers, members say.

‘Givers Gain’

Ivan Misner, who has been called the “Father of Modern Networking” by CNN and the “Networking Guru” by Entrepreneur Magazine, founded BNI in 1985, according to BNI’s Web site. He’s also been on the New York Times Best Seller’s list for his book, “Truth or Delusion? Busting Networking’s Biggest Myths.”

In his writings, Misner explains his philosophy called, “Givers Gain.”

“If I give you business, you’ll give me business and we’ll both benefit as a result,” writes Misner, who also extols the virtues of word-of-mouth advertising as the best advertising for any business.

Pete Dumont, president of the Bend BNI chapter, attests to that for his professional uniform business, Alliance Supply Co.

“When I first came to Bend and started my business … it was March 2005 and I had projections of what I would be doing by December. Well, I hit my end-of-the-year projection by July that year,” Dumont said. “When you’re a new company, you don’t have a lot of money for advertising, so I really relied on referrals. At BNI, you don’t get dead-end referrals, you get referrals to people ready to do business. I can do cold calls myself, I don’t need dead-end referrals.”

Mortgage broker Shelly Ann Turner, a BNI Bend chapter member since the chapter formed two years ago, says having other members referring one’s business to people they meet is like having a 25-person sales team.

“It really becomes part of your business network,” Turner said. “BNI allows us to have a huge sales force. I view it as part of a long-term business plan. You continue to fill the pipeline.”

Nihoul says business people can bring added value to their clients by connecting them to others they know and trust, something they usually don’t get over the Internet.

Entrees Made Easy co-owner Sally Brogan has made those connections. During a recent business meeting at Mt. Bachelor ski area to try and get on its Web site link for visiting tourists, she was able to bring up another member’s business.

“I just mentioned that Wild Flowers of Oregon (a Bend florist) was looking to expand their business into corporate and special-occasion events, which they sometimes have up there,” explained Brogan. “I’m not even sure how the topic came up, but it’s an example of how I was able to pass on their card at my meeting.”

Beyond networking

BNI members also help each other evaluate business goals. Members say they set goals for their businesses every year and revisit them a few times annually, with other members’ input often acting as a form of checks and balances.

Optional workshops also are offered to BNI members.

Within each chapter, there are smaller groups called “Power Teams.”

“You might have the Home Power Team, which would consist of the businesses that work on homes,” Dumont said. “For instance, you’d have the mortgage broker, the Realtor, the painter, the builder, the handy lady and the landscaper in that group. This Home Power team might meet at other times so they could get to know more about the specialties and could make better referrals for each other.”

Invitation-only

BNI membership is by invitation only. Another member must recommend an applicant and sponsor their membership. Applicants must submit references, after which board members review and interview the potential members.

Membership cots $330 per year.

Dumont believes the fee is a bargain for the business gained from members’ referrals.

Once someone is a member, Nihoul says renewal is not necessarily automatic. Weekly meetings are mandatory, though some absences are allowed. Above all, members must demonstrate honest, ethical business practices.

If a member does not uphold BNI ethics, he or she is asked to leave, Nihoul says.

Other BNI chapters have formed in Central Oregon over the last year and half, including two in Redmond.

A fourth one was just added in Bend this year, bringing the total number of area BNI chapters to six. There is talk of another one in the works for Prineville.

Each chapter must have at least 20 dedicated members, though most of the chapters in Central Oregon exceed that number and some have waiting lists, Nihoul says.

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