home business

Dr. Ivan Misner built a successful business referral organization, BNI, based upon the importance of developing relationships with other people. As old-fashioned as it sounds, he believes that the key to earning new businesses is forging new friendships.

Home Business® Magazine recently spoke with him about home-based entrepreneurship and how networking builds business.

Home Business® Magazine (HBM): How has your background prepared you for heading BNI?

Ivan Misner (IM): While I was a consultant, I really started to pick up on sales. They don’t teach you sales in business school and in virtually any college. I had to learn how to sell. A lot of business professionals don’t think they’re in sales, but if they’re selling their services, they’re in sales. Anyone trying to get new clients is in sales. They don’t want to sell because people hate to be sold to. I learned as a management consultant how to sell. It wasn’t in school; it was out there learning at things like Brian Tracy meetings. In forming BNI, I learned about the referral sales process. If you do ads in the newspaper for consulting, you don’t get any sales. I established a business based on the philosophy that if you want to get business, you have to give business to others. I had struck a chord with other business people that others didn’t have this referral industry figured out. I picked up a lot of these ideas through trial and error. I started to try to put it down. One previous book was Masters of Networking. These are practical, hands-on books for people who have to sell a product or service.

HBM: What is networking really all about?

IM: Networking: It’s more about farming than it is about hunting. It’s about cultivating relationships with people by getting to know people and trust people. I believe in the VCP process: Visibility, Credibility, and Profitability. All too often, people try to go from V to P. That’s not networking — it’s direct selling and even bad direct selling. Networking is connecting with people and building relationships. As you build trust, you build credibility which leads to profitability. HBM

HBM: How can a home-based entrepreneur use networking to boost the business?

IM: They inherently have the most difficult environment for networking. Networking is a contact sport. You have to get belly to belly with people and meet them. Home-based businesses more than anyone need to find opportunities to go meet other people and network with them. With technology, there’s a sense that I can use my computer to network with them, but that’s myopic. Technology works best after I’ve actually met people. It’s good for following up with contact. Going to meetings at BNI, Kiwanas, Rotary, etcetera: You can’t replace that.

HBM: What are your best tips for “reading” people?

IM: You can know the prospect well to know what works for them. It’s also a little bit of what resonates with you. Some techniques will work better with others. Some sales people do what they were taught, and if it doesn’t fit their style, they’re bad at it.

HBM: How do you define success for yourself?

IM: Wherever you are, be there. It’s a prime example of “simple but not easy.” When you’re working, don’t have your head on home issues. When you’re with the family, don’t think about business issues. And that’s even harder for the home-based business owner. Home is five steps away while you’re working. Once you can master that and separate it well, you’ll find it’s easier to build harmony. When I’m working from home, I quit in time for dinner with the family. Even if I have the biggest project on the planet due, I spend a few hours with the family. I tuck the kids in and say good night to my wife and then get back to work.