In the service business, time is literally money. When you run the business, that means most of your time is spent on activities that generate revenue. As a result, business owners have to be thoughtful — strategic, even — about how they spend their time.
That’s why we hate getting emails that say “let me pick your brain.” In my head, that roughly translates to, “I have questions and don’t want to pay for answers, so I’m going to buy you a cup of coffee instead.” Nails. On. Chalkboard.
A couple weeks ago, Arik Hanson shared that he’s revamping his approach to coffee meetings. His new approach makes sense, especially for consultants who only make money when they bring in new business. He’s not the first — nor the last — person to write about cutting back on coffee meetings.
But, his post got me thinking. I agree to a lot of coffee meetings (or happy hours, or lunches) with people who aren’t clients. Why? Is that really the best use of my time? I’ve found this networking is incredibly valuable — even if the value isn’t immediately apparent.
I don’t believe all PR can be measured in dollars and cents. Intangibles matter, too. And, that same belief guides how I approach networking. The intangible benefits of networking are equally important. I can’t speak for anyone else and I would never presume to advise someone on how to approach networking. However, I can assess my own situation to know that cultivating a strong network is valuable — monetarily and otherwise. I’ve landed three employees thanks to referrals that I cultivated over coffee. I frequently make introductions between nonprofits and people interested in getting involved in the community — interests I learn about over coffee.
I see a lot of value in being the person who can connect dots, make introductions and initiate mutually beneficial partnerships. Does all of that time and effort lead to new clients? Of course not … and that’s ok. Intangibles matter.
Not sold on the intangibles argument? Let’s do the math. To keep it simple, let’s say you agree to one coffee meeting per week that has no immediate, direct business connection. Four meetings each month. Each meeting is an hour long, with 15 minutes travel time, there and back. (If you’re spending more than 15 minutes to get there, reevaluate how you’re scheduling these meetings. Tag the meeting on to something else you’re doing to minimize travel. Or, ask the person to come to your part of town.) That means you’re spending 1.5 hours per meeting, times four meetings — that equals 6 hours a month spent on these networking meetings. Because time is money, let’s say your time is worth $200 per hour (for round numbers … I know many people bill out much higher and others bill out far lower than that!). That means it’s “costing” you $1,200 per month to network. But, if you get one small client out of those meetings, your “costs” are covered. (Depending on how much you’re charging, even if you land one client every few months, you can cover your costs!)
Takeaway: Intangibles matter and shouldn’t be devalued. Plus, these networking meetings aren’t really “costing” all that much to begin with.
When I first started my business, I was on the other side of the ask. I was the person reaching out to people I respected, inviting them to coffee. And, by and large, people were incredibly generous with their time and very willing to making introductions or offer leads on new clients. Now, if I’m able to help someone else by offering some advice or making a connection, I’m happy to do it. Plus, when I look at the math, I realize that it’s very easy to recoup those “costs.”
What’s your take on coffee meetings? How do you decide which meetings to take and which to skip?
P.S. Random fact: I actually don’t drink coffee. Never even had a cup. But, I am obsessed with tea!
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Image credit: comedynose