Some years ago, a close university friend was urgently seeking a management role in finance. She requested that I introduce her to my contact, Mr. E, a long-tenured executive at a prominent local bank where he held a high-level position. As a family friend of many years, I was happy to facilitate the introduction as I knew my acquaintance possessed strong qualifications. However, I failed to confirm whether she sincerely desired the job.
Given my deep relationship, Mr. E took the time to personally interview her and offered her a role with excellent growth potential. To my dismay, she resigned only two days later. It became clear she had merely been awaiting another offer and departed without regard for the impact on myself or the bank.
I sincerely and deeply apologise to Mr. E for wasting his valuable time and for not realising my associate might treat the introduction casually. He graciously accepted my apology and underscored the importance of reputation in business circles.
“Relationships and networks are the lifeblood of commerce in Asia. Use them prudently,” was the essence of his counsel. It was a lesson I have carried with me. To this day, out of continuing embarrassment, I have not requested any further introductions from Mr. E, wary other referrals could similarly sour.
The importance of reputation and relationships in Asia
The power of relationships, often referred to as “guan xi” in Mandarin, has been well documented across Asia. In many Asian cultures, relationships are even more integral to business dealings and success.
When asking someone for a significant business favour, especially one that could impact their reputation or career, the requestor will carefully consider the risk involved, the strength of the relationship, and any potential benefits.
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For example, one startup founder was denied banking services after an assessment. Frustrated, he pointed to other similar startups that received facilities.
“Do I need to be your childhood friend to get the same treatment?” The unfortunate answer is often yes, to an extent. I knew the bank’s CEO and inquired about the differing decisions.
He explained that granting facilities to this startup carried too much risk since they lacked familiarity. However, he said, “If you’re willing to endorse them, I’ll approve it, but your reputation will be attached.”
While unstated, we both understood endorsing them could impact future assessments of my own credibility should I someday seek similar services. Not wanting to endanger my reputation, I declined to recommend the startup out of caution for what might occur if things went wrong.
Building connections
For an entrepreneur, building connections and working with various stakeholders throughout the value chain are essential. Connecting with associates or senior leadership at large multinational corporations can provide access to strategic resources. Entrepreneurs may also collaborate across borders and industries to deliver more robust solutions to major clients. Ultimately, cultivating useful, trusted relationships is important for business growth.
However, establishing such connections can be challenging, especially for newer entrepreneurs lacking an established network. Traditional outreach methods like cold calling or LinkedIn may yield inconsistent results. A preferable approach leverages one’s own contacts, such as close colleagues or mentors, to facilitate warm introductions to targeted individuals. Trusted intermediaries can help validate credibility and increase the likelihood of a successful initial interaction.
Overall, strategically developing professional relationships through referrals from within one’s own network may represent the most effective pathway to expand opportunities and resources over time. Ongoing relationship building remains a core competency for entrepreneurial success.
A cost to reputational capital
Before asking others to introduce you, remember that introductions require reputational capital from the introducer. For example, when introducing a startup founder to senior associates via email, my own reputation is at stake. Associates will respond based on their familiarity with and trust in me, believing that due diligence has been performed regarding the introduction. Simultaneously, introductions create an obligation — the introducer expects a favour to be returned if called upon.
For this reason, I am sometimes forthright when asked for introductions, only agreeing if trust is established in the person, and I am willing and able to reciprocate future favours to associates.
Respecting introductions
Having facilitated many introductions between startup founders and contacts, I have experienced both positive and negative outcomes. There are important factors to consider both when requesting and receiving introductions from others.
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Do:
- Thank the contact for their time and consideration. Respond promptly, within 24 hours of the introduction if possible, to respectfully acknowledge their outreach and express your appreciation for the opportunity to connect.
- Be clear and specific regarding your objectives for the initial discussion while remaining open-minded to the contact’s perspectives and priorities. Rather than an open-ended meeting, outline how you hope your discussion might help address mutual interests or needs.
- Arriving early for any in-person meetings is a sign of your professionalism. Punctuality shows respect for the contact’s time and consideration.
- Acknowledge the relationship between yourself and your introducer to provide helpful context. For example, note if they previously mentored or collaborated with you.
- Throughout any discussions, maintain the highest levels of courtesy, respect and integrity. Remember, the introducer has entrusted you with representing them positively. Where applicable, consider modest incentives that might benefit both the contact and your introducer, recognizing their established relationship.
Expressing gratitude with sincerity
As a mentor, one disappointment I sometimes face is losing contact with founders after making introductions on their behalf. Even if follow-up occurs, the communication sometimes lacks sincerity and only aims to request more introductions without cultivating the relationship. It is unsatisfying to feel used solely as a resource without acknowledgement as a person.
When providing introductions, mentors like myself do so in a spirit of goodwill, hoping to help others progress in a reciprocal manner. Introductions are made with the trust that recipients will respect the connection and express proper gratitude.
Fortunately, some founders demonstrate appreciation admirably. Some promptly updated me on the progress of the introduction and reiterated their thanks. They offered to return the favour by helping those I referred to them.
Others express gratitude more personally through thoughtful gestures such as thank you notes or buying coffee. As a result, bonds of trust have formed, and new professional networks have been established.
In Asia, relationships are built on trust and reputation. Therefore, as a founder expands, introductions and connections should be treasured. The way one handles these interactions reflects one’s reputation, which can make or break important deals. Expressing sincere gratitude is key to cultivating strong, lasting professional relationships.
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This article first appeared on TRIVE’s internal knowledge sharing.
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