Karen’s Networking Rules

A few weeks ago, a client of mine told me he had several lunches and dinners throughout the week with “potential clients.”  The CFO of the company leaned over and whispered in my ear, “what he didn’t tell you is that his expense report last month was for well over $1,000 in food.”  Stunned and amazed I said, “Have you lost your mind?”  He said well, “I have to develop business.”  Let’s suggest that we do it responsibly.  So I offered him my rules:

1. Have coffee with anyone (Remember last week's post?).  That’s right, have coffee with a colleague, competitor or a potential client.  Coffee is $5 investment in your business—the opportunities to talk about your firm, its experience and the type of deals or clients you’re looking for.  It’s also an opportunity to learn the same of your colleagues.
2. Have lunch with clients that have defined contract opportunities for you.  Every public agency has rules.  Many limit the amount you can spend on client lunches and other “gratuities.” For those doing public sector work, check with the Ethics Department that governs your agency or the Federal Acquisition Regulation for those doing federal work.  If this is your client base, refer to Rule #1. However, in the private sector, there aren’t as many limits—except your budget.  That being said, I try to limit my lunches to clients that have defined an opportunity for your firm to propose on or those clients with whom you already have an established relationship.
3. If you must “do dinner,” structure such engagements around association or organizational events.  For those doing work with public agencies, this is a must.  Why? Aside from the fact that most public agencies discourage “dinner and cocktails,” as part of their ethics and conflict of interest policies, in the age of transparency, you don’t want your firm to end up on the front page of a “pay to play” expose.  If you’re in the private sector, chose a location that fits within your firm’s budget.  Don’t forget, if you invited them, you pay.  That may seem obvious, but I’ve heard of more than a few disgruntled clients who were asked to dinner, only to “go Dutch.”

While these may seem basic rules, they can go a long way to ethically building your business on a budget.

Karen Compton

Industry Speaks