Building a business isn’t just about what you know—it’s about who you know. Connections can make all the difference. Networking and cultivating strong professional relationships can open doors to new opportunities and accelerate business growth. As a startup founder, small business owner or entrepreneur looking to scale, making the right connections to secure the right funding can be the make-or-break factor in your journey to success.
Connections are Your Key to Accessing Capital
It’s no secret that the world of business financing can be daunting and highly competitive. Lenders, investors and venture capitalists are inundated with pitches and proposals, making it challenging for your business to stand out. However, the secret to cutting through the noise might just lie in the power of your connections.
Building professional relationships is not a one-size-fits-all approach. It requires a strategic mindset and a willingness to step outside your comfort zone.
Building Relationships and Leveraging Your Network
Think about it – who do you know who might have a direct line to the decision-makers at a venture capital firm or angel investor group? Perhaps a former colleague or industry peer has a connection that could open the door to a meeting. Or maybe a mentor or advisor in your professional network has insights into the funding landscape that could point you in the right direction.
Building and nurturing relationships within your network is crucial when it comes to securing funding. It’s not just about who you know, but how well you know them. Take the time to cultivate genuine connections with people who can become advocates for your business. Attend industry events, join professional organizations, and actively engage with your network to demonstrate your passion, expertise, and the value your business can bring to the table.
Don’t underestimate the power of your existing relationships, either. If you’ve already established trust and credibility with a lender, investor, or industry leader, leverage that connection to explore potential funding opportunities. They may be more inclined to take a closer look at your business proposal or even make an introduction to a relevant funding source if they know you and your business.
The Importance of Authenticity and Transparency
When it comes to securing funding, authenticity and transparency are key. Potential investors and lenders want to see that you’re not chasing the money and you have a genuine passion for your business and a clear vision for its future. Be upfront about your challenges, successes, and long-term goals, and demonstrate your commitment to the journey ahead.
Navigating the Funding Landscape with Guidance and Mentorship
While your network can be a powerful tool in your funding arsenal, it’s also important to seek out expert guidance and mentorship. Consider connecting with experienced entrepreneurs, industry leaders, or financial advisors who can provide valuable insights and advice on navigating the funding landscape. They may be able to introduce you to relevant funding sources or offer guidance on crafting a compelling pitch. The U.S. Small Business Administration reported that 70% of small businesses that received mentoring survived beyond five years, double the survival rate of those without mentorship.
As you begin to explore, know your funding options as you seek out the relationships and mentors who have the expertise aligned with your business and funding goals. Some options include:
- Traditional loans: Explore options like bank loans and SBA-guaranteed loans.
- Venture capital: Explore venture capital firms that invest in promising startups.
- Angel investors: Seek out angel investors who are willing to invest in your business.
- Crowdfunding: Consider using crowdfunding platforms to raise funds from a large number of individuals.
- Grants: Research government grants and other funding opportunities.
- Self-funding: Consider using your own savings to ‘bootstrap’ and start or grow your business.
You can also take a look through the Edson E+I funding resources page to learn more about some funding options.
Bridging the Financial Gap with Darryl Johnson
Darryl Johnson
Founder of The Cooperative Lender
CEO/Founder of Business Credit Works (BCV)
With over a decade of experience in commercial lending, mortgage processing, financial analysis and community economic development, Mr. Johnson has worked in large financial institutions, wealth management firms and community-focused organizations. His mission is to bridge the gap between financial services and underserved communities, reshaping how lending institutions engage with these markets. His passion stems from a deep commitment to economic empowerment, particularly for minority, women-owned and Native American businesses.
“I’ve seen firsthand how access to capital and financial education can transform communities, create sustainable businesses and drive long-term economic growth,” he said.
Through The Cooperative Lender’s Lending School, Mr. Johnson trains individuals in commercial loan underwriting, financial analysis, and credit packaging, reducing risk and improving loan readiness for both borrowers and financial institutions. According to Mr. Johnson, building connections can provide several important benefits for your business, including access to exclusive opportunities through people in your network, boosting brand visibility, helping you stay ahead of trends by talking with fellow business leaders, and helping you generate leads and referrals.
Attend Relevant Events and Share Your Expertise
Industry events, conferences and workshops provide excellent opportunities to expand your network. Mr. Johnson mentioned that it’s about “quality over quantity. A few strong relationships can be more valuable” than many superficial connections.
Attend these gatherings with a clear purpose in mind, whether it’s to meet potential clients, learn from industry experts or connect with potential partners. Mr. Johnson points out that “showing up is half the battle” but “many people overthink networking, but just being present whether an event” or even “on a LinkedIn thread” creates opportunities. He further states, “you don’t have to be the loudest in the room. Consistency, authenticity and engagement are what truly build strong connections.” This reinforces that you need to be an active participant, engage in conversations and make a concerted effort to connect with people who can contribute to your business’s growth.
Position yourself as a valuable resource within your network by sharing your knowledge and expertise. Contribute to industry discussions, offer insights or provide helpful advice to your contacts. This not only helps you establish yourself as a thought leader but also strengthens the bonds within your network, as people will be more inclined to reciprocate and support your endeavors.
Building Meaningful Relationships Across All Levels
When it comes to networking, it’s important to cast a wide net. Don’t limit your connections to just industry leaders or high-profile individuals. Engage with professionals at all levels, from entry-level employees to top executives. Each person in your network can offer unique perspectives, insights and potential opportunities.
Mr. Johnson’s work specifically noted that he was able to find key banking professionals and financial experts at a business development event. He says, “You have to meet everyone.” At a networking event, he was introduced to a regional lender interested in expanding its reach to underserved communities. In his words, “This experience reinforced the power of networking, not just for gaining resources, but for building meaningful collaborations that create lasting economic impacts.”
Take the time to get to know your contacts on a personal level, learn about their goals and challenges, and find ways to support them. This personalized approach will help you stand out and create lasting, mutually beneficial connections. Mr. Johnson suggested starting small, using online platforms, preparing and setting networking goals, listening actively and following up after networking events as his keys to success.
It’s crucial to follow up and maintain regular communication with your contacts. Send personalized messages, share relevant content or simply check in to see how they’re doing. Mr. Johnson suggests “a simple message helps maintain connections over time.” This ongoing engagement will help you nurture your relationships and ensure that your network remains a valuable asset for your business.
Start Building Connections to Elevate Your Business Today
In entrepreneurship, connections can make or break your success. By leveraging your network, developing genuine relationships and seeking expert guidance, you can unlock funding opportunities and confidently elevate your business.
If you want to build or grow your business, networking isn’t just helpful—it’s essential. Building meaningful connections can open doors, grow your customer base and drive long-term success. Step out, connect and watch your network become the foundation of your growth! Start making connections at an Edson E+I event today!
