Building a Network

Matt Noah is all in favor of better mousetraps—and of the entrepreneurs who build them. After all, Noah, who started his own business in 1998, qualifies as one of them. But he has a word of advice for entrepreneurs who expect the world to stand in line for a new or improved product.

“The world ignores better mousetraps unless they’re advertised,” Noah says. “You need marketing and . . . credibility.”

That’s where Noah, who founded NetSuds and MedSuds—Chanhassen-based networking organizations that host events for entrepreneurs working in the high-tech and medical industries—comes in. Like the other networking organizations in the Twin Cities, including Medical Alley/MNBIO, The Collaborative, and Minnesota Entrepreneurs, Inc., NetSuds and MedSuds (the “suds” refers to the original members’ practice of getting together over beers) bring together businesspeople with like interests who may be able to benefit each other. Networking can open doors to venture capital, offer introductions to key advisors and consultants, and serve as a marketing channel for new products and companies.

“Networking is critical to success,” says Kevin Sundquist, founder of medical-device company MR Instruments and veteran of many MedSuds events. He notes that entrepreneurs, especially those in the medical-device and high-tech industries, often ask investors to make multimillion-dollar decisions on products that may not even be in prototype form. “We need to develop those relationships, develop that trust, develop that comfort level,” he says. “Networking helps us do that.”

It takes time and energy—both of which can be in short supply for entrepreneurs trying to launch a business. But according to Liz Rammer, it’s worth it. She’s the vice president of marketing and communication for St. Louis Park–based Medical Alley/MNBIO, which hosts half a dozen “Alley Chats” networking events for its members each year.

“Entrepreneurs are often so busy trying to build their companies that they find it hard to get out and go to events,” she says. “But these events can be so valuable in terms of identifying resources and building relationships. It’s almost a necessary part of your business plan.”