Business Networking Via Chapters
Business Computing (by Matthew Mok)
17th October, 2001

Given the bleak economic outlook, businesses must find ways to stay in focus and remain competitive. One of the ways is through good old business networking. Most people could attest that business networking can either make or break one’s business. They say who you know and what you have may or may not lead you to better opportunities and business deals. “Strategic alliances and networking among businesses have become more apparent and important than ever during these trying times,” says Dr Ivan R. Misner who is the founder and chief executive officer of Business Network Int”L (BNI), a business and professional networking organisation which has worldwide business networks.

He says businesses can thrive using face-to-face marketing, an often underestimated marketing tool and an activity so passionately shared by him. Misner who is also author of New York Times bestseller Masters of Networking says BNI was founded in 1985 over in the United States to generate businesses among its approved members through face-to-face marketing. Members pass business referrals to fellow members within a location group called chapter.

A chapter which usually consists of 20 to 30 members allows only one person per profession to join the group; no competitions whatsoever. “For example, a chapter will only have one attorney, one florist, one banker, or one travel agent,” Misner explains. He says BNI to date has 2,100 chapters with 40,000 members, amounting to 1.7 million referrals in 12 countries such as US, Canada, UK, Ireland, South Africa, Sweden, Germany, Israel, New Zealand, Australia, Malaysia, and Singapore.

“Last year, the total value of referrals around the world hit RM2.5 billion,” Misner says, adding that most referrals are in the US, followed by UK and Canada. Interestingly in Malaysia, there are six chapters in the Klang Valley and two in Johor Bahru with a total of 150 members, considering BNI Malaysia was only formed in June last year. The local chapters had thus far registered a total of RM3.5 million worth of referrals. “Malaysia and Singapore are ‘neck to neck’ in terms of the number of members,” Misner says.

Malaysia has a broader spectrum of members such as manufacturers and wholesale distributors as compared to other countries. Typically, members are from three types of professions - owner of small businesses and entrepreneurs, sales personnel from big corporations, and professionals such as attorneys, dentists and such, he points out. “BNI is certainly not a social or service group,” Misner stresses. BNI members meet up every week to pass referrals in structured meetings that follow a set of worldwide agendas. The meetings start off with open networking where members mingle and introduce themselves and their companies.

Next, a member as the speaker of the week will be given 15 minutes to present what he does and how other members can help to give referrals to him. “Later, the most important aspect of the meetings is members go around the room to pass referrals to other members using referral slips and they follow up from thereafter. “They even have each other’s business cards to be given out to potential clients,” he explains. Membership has its privileges “Obviously, members can benefit from the extensive global network of 1.7 million referrals, Misner says with a smile. “The impact is tremendous to members within the chapters.

Some chapters had talked about a ‘bad month’ when members received like 200 referrals; too many for them to cope,” he laughs. Members, too, can improve their presentation skills when they regularly attend the weekly meetings. “They even tell me that they had developed lasting personal and professional friendships among themselves. They said being a member is like having a pool of business consultants who help one another,” Misner recalls. In addition, members can look forward to international networking where an annual conference, usually held in the US, gathers members from all corners of the world to network.

On top of that, each country has its own conference at the national level where various chapters meet up as well. Members can also link their Web sites to BNI’s and network among themselves virtually through chatrooms. “What we aim primarily is to get business done within a chapter, and later look to other chapters and other countries when opportunities arise and are deemed appropriate,” Misner says. Those interested to join BNI can apply to the local chapters. Their applications will be reviewed by the committee membership, which can also expel members who had rendered bad service and products to clients.

The majority of members joining BNI is through word of mouth. Misner says membership fee is RM1,000 per year, excluding a RM200 one-time-off processing fee. Honour thyself As members, they need to provide good service and products to clients and attend the weekly meetings. “A good attitude is a plus to establish and maintain relationships among members and clients. We are looking for quality business people who are honest and ethical,” Misner says, adding members’ age ranges from early 20s to 60s.

“We often tell our members that this is not a get-rich-quick scheme; do not expect to join today and reap rewards in a few weeks. Networking is more like farming than hunting; it takes time to cultivate relationships, trust and eventually share business among themselves. When you give out referrals, you give out your reputation as well. So you only refer people you trust and who are able to do the job,” he continues. Misner says there is a need to have a structured programme such as BNI’s for the many natural networkers out there to gain maximum benefits.

In Malaysia alone, the information technology (IT) industry already has a few networking groups like First Tuesday and WordUp. He encourages BNI members to diversify their business contacts by going to these groups. However, he says BNI may not officially partner with these groups here due to different interests and objectives. Looking ahead, Misner says BNI will open a local office in Kuala Lumpur within the next six months. The friendly networking guru opines that the future holds bright for BNI as there are many more untapped countries to explore to do business.