[Editors Note: This issue of the newsletter contains an article by Terrie O'Connell of Fenix Coaching. I'm sure many of you have heard of her if you follow the RMIUG job list. Terrie talks about building your business by making use of referrals and the contacts you already have. This is great advice and I know from experience that it works wonders for getting the next gig.]

How to Build Your Business Through Referrals by Terrie O'Connell

Independent Technology Consultants are finding that changes in the economy and supply-chain dynamics have created an intensely competitive marketplace of late. Ironically, however, they also find that the most important business decisions their clients make are still based on personal relationships. When you think about this from the client perspective, would you rather work with a cold call vendor or would you offer your project to a colleague with whom you have an established, respected relationship?

If you think you can substantially build your business by cold calling, think about the value of your time. The new business climate demands that you make the most of your time. How many cold calls do you or your team make to close a deal? Chances are, it's not a healthy ratio. Cold calling isn't an effective use of time. It's a tactic, but a part of a limited strategy.

Build Through Referrals
One of the easiest methods for developing business simply involves bringing your existing business network into your plans for success. This network does not have to involve just previous clients but can also include previous co-workers, associates from trade organizations. You may never have thought to ask, but these contacts might just be your next sales lead.

Think about the radical difference in calling people who've never heard of you versus calling people who WANT to hear from you because your established client has placed an advance call on your behalf. These potential clients have been given the heads up that you are a viable, valuable connection. They are expecting and looking forward to hearing from you.

What would keep you from implementing a referral program for your consulting business? Maybe you feel it's not the right time to ask your colleagues for help; you're afraid of being told no; the approach might come across as too "salesy." Dispel these misconceptions. Dispense with your fears. Energize and strengthen your business development process by calling on targeted referrals!

By taking a proactive approach to building your business through referrals from trusted clients, colleagues, and professional contacts and organizations, you are engaging and working the network. By calling on referrals, business decision-making time collapses, your competition fades into the background, and you establish immediate credibility.

Get started with your targeted referral process by planning how you want to spend your business-development time:

1. Build your referral contact list; think about the people you know and whom they might know.

2. Carefully define your target clients - those with whom you really want to work.

3. Clearly articulate ways you differ from your competition.

4. Test your positioning with others and incorporate their feedback.

5. Dedicate time to proactively asking for referrals.

6. Track and measure your referral business.

7. Thank those who give you the referrals.

Focus your efforts on activities that give the highest payoff:

1. Be prepared by getting to know your client's business.

2. Know the marketplace and your competition.

3. Build your network with people who can be reciprocal sources of referrals.

4. Position your product or service as "need to have" versus "nice to have".

5. Demonstrate how you can increase revenue, lower costs, and increase profitability for your client.

6. Stay motivated by following valuable leads - but know when to call it quits.

Position yourself as the expert:

1. Position your product or service in terms of benefits, not features

2. Narrow your focus; don't say you can do everything.

3. Prepare a variety of compelling ten-second introductions.

4. Join a business leads or networking group and become an active member.

5. Write articles for professional publications and give presentations to industry and civic groups.

Remember, the most energizing and exciting elements of our work are our relationships and interactions with clients. We like learning about a client's situation and matching our solutions to their needs. In an era dominated by ever-expanding technology, the creative, strategic part of our business is back.

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Terrie O'Connell is a nationally recognized career counselor and is the featured Career Advisor for Coloradojobs.com/KMGH Channel 7. Terrie's comprehensive Career Center (www.fenixcoaching.com) combines career counseling with actual career opportunity by providing resources, advice, job openings, and much more. As a coach and as a recruiter, Terrie is known for having her 'finger on the pulse' of hiring not only in Colorado but around the nation.