Monday, November 30, 2009
Networking for client referrals is vital
Dallas Morning News
DALLAS — For small businesses that care for older adults, networking is more than a buzzword. It’s the only way to survive and thrive.
Without the client referrals that come from others in the industry, a senior-care company can’t operate.
Joe Sparks attends eight networking events throughout the Dallas area each month to introduce himself and his new business. Smooth Transitions helps older adults move out of their homes and into retirement communities.
“Referrals are the lifeblood of my company,” he said. “So I’ve got to get my name out there.”
Sparks and about 60 others from assorted senior-oriented enterprises meet regularly over breakfast to trade business cards and, after the eggs and sausage, stand up and deliver one-minute sales pitches for their companies.
The financial planners, home-health-care marketers and hospice providers joke that their Marketing Plus get-togethers bear a slight resemblance to speed dating. The long-term goal, they say, is to build rewarding relationships from the initial meet-and-greet.
When Sparks comes across someone who may be a good match for his business, such as a marketing director from a senior-living community, he proposes lunch or coffee to talk further about how they could help each other.
The move manager said he gets many of his leads from retirement communities that have senior clients who need help moving in. Both businesses benefit: He snares the referral, and the retirement community welcomes its new resident sooner.
Sparks said he also gives out his share of leads. While coordinating a senior’s move, he may refer his client to a handyman who can prepare the house for sale.
“That’s the beauty of referrals,” he explained. “They work like dominoes.”
Experts say referrals are especially important to senior-care businesses because the industry is heavily fragmented. It’s made up of many highly specialized sole practitioners who often can’t meet all of a client’s needs alone.
Gary Crooms, a financial gerontologist and owner of Senior Information Services in Lewisville, said one reason he attends networking groups is to find out where to send clients when their needs extend beyond his services.
“If you don’t meet and talk to others in the industry, you won’t know what to tell your clients,” he said. “The senior-care industry can be a maze for many older adults. It shouldn’t be for the professionals who work inside it.”
Since aging doesn’t slow down when the economy does, senior care has fared better than other industries during the recession. And as the over-65 population doubles in the next 20 years, the industry’s long-term prospects look strong as well.
People who have lost their jobs as information technology managers and mortgage lenders are reinventing themselves as home-health-care managers and financial advisers.
“We’re constantly seeing new faces at our networking events this year,” said Pat Carlyle, founder and director of the Senior Network Alliance, which meets monthly at the Highland Springs retirement community in North Dallas.
The influx of new businesses underscores the importance of exercising caution when making referrals, she said.
“More than ever, you have to be careful about where you refer a client,” Carlyle said. “If you make a bad referral, it reflects poorly on your reputation. And in the senior market, it’s all word of mouth. A couple of bad referrals can sink you.”
To guard against sending clients to problem-plagued businesses, some senior-care entrepreneurs have begun organizing more formal networking groups, called alliances, that screen prospective members before accepting them.
Carole Larkin, a geriatric-care coordinator, said she belongs to a new alliance with 14 members that includes a financial adviser, a funeral planner, a home-health-care agency, a nonmedical home-care provider, a real-estate agent and a reverse-mortgage specialist.
“Our businesses complement one another;, we don’t compete against each other,” said Larkin, who helps Dallas-area families look after aging relatives. “Our common mission is to build referrals for the entire group.”