Each day, we look at everything that is going on in the Sandbox, searching for impactful projects, stories and ideas by Sandboxers. We then repost the most interesting, inspiring or brilliant stuff here on our blog.

Today Joeri van Geelen shares an excerpt of his MSc thesis about entrepreneurial networking. Joeri has researched how the networking of entrepreneurs differs from that of managers. His concluding recommendations are indeed timely advice since the Sandbox Global Summit is just around the corner. If you would like to know more about Joeri’s research, connect with him on Facebook.

This thesis was designed to make network theory more operational and practical. Specifically, it aimed to inspire network practitioners to develop workable network strategies to then firmly network while positioning themselves in appropriate formal and informal networks. To answer upon this request, the researcher came up with a range of recommendations for network practitioners in general. Whereas some recommendations were directly deduced from earlier discussed findings, others extend beyond the scope of this research. The recommendations of the latter kind were built upon the researcher’s empirical and practical understanding developed throughout the course of this thesis project.

As a point of departure, networking is about getting to know people, meeting people and broadening one’s network. Accordingly, this thesis is confident that the more people one knows, the more opportunities one will be presented with. To further recognise the importance of networking for both personal and corporate benefits, the interviews provided insights into an overall four direct effects of networking: (1) identify new ideas and opportunities; (2) gain easy and cheap access to resources with the use of networks; (3) build credibility and a good reputation; and (4) moral support from a network of business colleagues and friends. Next, this thesis proposes that these four direct effects provide access to a more innovative firm with a higher probability of growth in both national and international markets. In order for network participants to fully capitalise upon the rich potential of networks, the operationalisation in this thesis can be used as a guiding framework to determine, prepare, exercise, follow-up and evaluate networking strategy.

1.1.1 Motivations and Goals

Determine for what purpose networks are to be used. This thesis provided the incentive for network practitioners to critically assess one’s motivations and goals for networking, because one will not reap the full benefits if one networks “just for the sake of networking”. To further discriminate, the data revealed the existence of two different types of networks: (1) networks for generating sales; and (2) networks to learn from others to therewith improve the firm. Whereas managers primarily use their networks for sales, entrepreneurs were more motivated to learn for themselves and for their firms. Either way, both networks should be used to generate the highest possible return on investment. In order to do so, one is recommended to determine for what purpose one wants to use his or her networks. Although it ispractically impossible to determine the most effective network configuration for each and every case, the guiding principle is to develop and maintain a diverse network of weak and strong ties to enable for achieving higher revenues and faster growth.

Find the right balance between formal and informal networks. Whereas this thesis for the most part concentrated on informal personal networks, interviewees also referred to their participation in formal networks (e.g. branch, industry, SME and trade organisations). To reflect upon the latter, the mainstream thought on networking at work in formal networks can be summarised as: “drinking coffee, whiskey, smoking a cigar and eating good food.” Overall, such formal networks often consist of the same contacts, which may provide for both pros and cons. The advantage may be that formal networks deliver strong ties of friends who can directly provide assistance or indirectly set up a personal introduction to others. On the other side, the researcher also envisions the risk in that members in formal networks may not look beyond their inner-group of current contacts. The practical implication may be that the same circle of strong ties from formal networks will not sufficiently provide for new and innovative ideas and opportunities. For that reason, membership of formal networks may not be necessary per se. Rather, this thesis emphasised the benefits that can be reaped through more informal personal networks; deemed especially relevant for entrepreneurs. To further nuance though, the researcher can also imagine that the more specialised firms need a strong network of well-connected individuals who can facilitate contact with and entry into the appropriate supply and the sales channels.

1.1.2 Preparations

Devise a unique strategy that has a good probability of success for the firm. The data revealed that many individuals do not think about what to eventually take out of networking events and meetings. To illustrate, an oft-cited phrase was “I just want to speak with many people”, which obviously is a rather vague and general motive. To reap maximum benefits out of networking events, this thesis emphasises and proposes the importance of preparation. To begin with, one is encouraged to carefully go through the participant list so as to know with whom one can meet. Thereafter, one should depict the most promising contacts for his or her firm and make sure to pre-arrange meetings with them. Meanwhile, it makes sense to yet plan the follow-up activity in advance of any networking event.

Try to understand the dynamics of the setting in which networking takes place. This study provided the incentive to anticipate upon and understand the dynamics of a networking setting. In fact, it can help practitioners to specifically prepare for their network engagement on site. The advice is thus to envision the dynamic features of a networking event and act accordingly.

Deliberately improve networking competency and skill. The benefits of proactive, entrepreneurial networking cannot be stressed enough. Therefore, it is pivotal to personally develop networking competency and skill so as to make most effective use of networks to therewith improve business activity.

1.1.3 Networking at Work

Capitalise upon informal networking activity to intensify the strength of ties. The more informal contact moments provide the opportunity for network actors to engage in deeper, more personal and intense levels of interaction. Additionally, valuable information can be obtained through such informal social encounters, which usually take place in and around the more formal activities at networking events.

Proactively ask questions to create new ideas and opportunities. Taking a proactive stance in asking questions is an element of one’s degree of entrepreneurship. The data revealed that it frequently leads to answers that contain valuable information, which then can be transformed into new opportunities.

First give and add value to others. The win-win or first-give-and-then-take approach is more constructive for intensifying relationships than the rather impersonal exchange-of-business-cards approach. The former, more cooperative stance usually provides for long-term added value.

1.1.4 Follow-up

Systematically engage in follow-up contact. In order to retain and not to lose contact, one needs to carefully exercise follow-up contact after networking takes place. The post-event trajectory is fundamental for prolonging the meeting momentum. To exemplify its significance, often sales are not yet established at a networking event itself, but often only materialise after the event by means of contact follow-up.

1.1.5 Outcomes

Frequently evaluate the value of existing networks. Important to note, the effect of networks is not always measurable in monetary terms. Added value can also be immaterial, which may just as well turn financially profitable over time. Either way, one is encouraged to routinely evaluate the amount of time invested in a contact and the return on this time invested. In this way, one can critically reflect upon the scope and depth of one’s networks, so as to determine if networks are most optimally used.

If you are interested in a more detailed summary of Joeri’s work, you can access one here. You can also read more about Joeri’s work on the entrepreneurship blog Dutch Valley.

Meet Sandboxer Rob Ianelli, pronounced  ”eye-a-nelli”, and as he puts it, “there’s a lot of vowels”. He left high school at 17 to pursue his college education early, too eager to wait until he finished his senior year; he studied in Washington D.C. and Australia, and  went on to Babson College. Full of energy after Babson’s entrepreneurial approach of education, he endeavored in different ventures, and founded Hip Visions and WhatsUpNetworks. Find Rob on Facebook and Twitter.

1. Tell us the story of your latest project / occupation.

I’m working on WhatsUpNetworks.com – WhatsUpNetworks LLC which is the second company I started since college and I’m loving it. I always have had a blast throwing parties and had a love for marketing/branding and took all those interests and combined them with my favorite places: Martha’s Vineyard being one of them. It all started there building this online and offline community around content and experiences, and now we’re expanding to more “destination markets” to let them know “WhatsUp” and to give the community of 21-30 yr olds we target, one hell of a good time. Brands work with us to get involved and market their goods/services via our platform. It’s so much damn fun. I get to do what I love and wake up smiling.

2. What are you doing and how did you get there?

I’m living a lot of places and working with a lot of fantastic people and brands. I think I got here mostly on persistence and really focusing on a dream that I have had for a very very long time. Hard work never hurts, but ultimately, I think I am where I am today because of an incredible family, incredible friends and a thirst for life that will most likely never be quenched. I’m all about stacking the memories and never looking back. Carpe diem right?

3. Tell us about the biggest successes and failures in your life. What worked, what didn’t, and what did you learn?

My greatest success has been living up to my goals and having the friends that I have in my life. For me, it’s all about “bank a little money, but a lot of memories” and I’m very proud to say that my memories account is rapidly growing. I’ve had a lot of failures, not necessarily just one that is jaw dropping. I see failure as missed opportunities and that bums me out. One that comes to mind is I could have seen the Red Hot Chili Peppers Live in Ireland, and I passed on it for a stupid reason. Regrets suck and I’m not trying to do them anymore. So I suppose failure to me = regret.

4. What do you want to achieve in a) the next week, b) the next year, c) the next 10 years?

Next week: I want to cut a really juicy deal with potential client in Los Angeles and I’m also really hoping to get up to Napa Valley next week when I’m in California. I really love wine and that whole scene.

Next Year: I want to partner up with this one company I am in love with and I also want to get down to the British Virgin Islands for Yacht Week in March. Oh and I also can’t wait for SXSW in Austin!!!

Next 10 Years: I want to teach a college course and I want to start an organization that focuses on helping highschool students who are not academically excited, to think about entrepreneurship out of High School. I think a lot of kids fall through the cracks and don’t go to college, but could easily start their own business or pursue their dreams otherwise. I want to give back in this way, and it’s always been on my mind.

5. What was your most inspiring moment during the last two weeks?

I came across a binder of emails my Mom had saved for when I was emailing back and forth to home in 2006. I was living in Beijing China going to school and interning at Baidu. The thoughts, dreams and expectations I wrote that I wanted on my return to the US actually in some really wild way, came true, as I’m doing all those now in my life. It’s inspiring to think that dreams can be made into reality. It just takes a lot of hard work and vision.

6. How could other Sandboxers and the outside world support you and why would that be exciting for them.

Just say hi and really, that’s all I could ask for. I love meeting new people and learning their story and seeing if there’s anything in my past life and current that could be of help and/or we could work together. Collaboration is everything to me and that’s one of the biggest selling points about Sandbox. It would be exciting for anyone to collaborate with me because I really see the world big picture and anything is possible. I’m all about pushing the limits and seeing how far it can go. If we’re not testing limits and breaking down barriers, than what fun is that? Let’s make some moves.

Rob’s favorites:

- book: Let my people go surfing, Yvon Choinard

- movie: Training Day

- place on earth: Vietnam

- travel destination during last year:  just realized I didn’t leave the country – #fail – LOL

- food: kung pao chicken

- drink: amarone, red wine

- quote: The only people for me are the mad ones, the ones who are mad to live, mad to talk, mad to be saved, desirous of everything at the same time, the ones who never yawn or say a commonplace thing, but burn, burn, burn, like fabulous yellow roman candles exploding like spiders across the stars and in the middle you see the blue centerlight pop and everybody goes “Awww!” - Jack.Keroac

Here is the second blog post about Sandbox from Susan Su’s small series “Entrepreneur Lessons from outside the Valley“. Have a look at it! It’s well written and gives good insights into our business model. Also, if you are on Twitter, follow @susanfsu for a feminine point of view on life in the Silicon Valley.

Picture: Steph & Adam

She created a series called “Entrepreneur Lessons From Outside the Valley“, bringing ideas and best practice from outside into the Silicon Valley.

Click here to read the first post of the series about what makes a good networker.

Some exciting young startups such as Amazee (social collaboration), Procedural (3D city visualization), LiberoVision (3D soccer replays), Wuala (social online storage), Doodle (simple appointment planning), Newscred (digital newspaper), Zattoo (online TV), etc. will join the event from all over Switzerland and demo their product. Please drop us a line if you would like to join or maybe even have an idea / product to present. Looking forward to seeing you there!