What is Business Networking and Its Benefits?
Business networking is the process of forming mutually beneficial relationships with clients and or customers. The main purpose of business networking is to inform others about your business, with the hope of turning them into customers.
Business networking is about leveraging your business and personal connections, to bring in a regular supply of new business. Sounds simple enough, doesn’t it? Don’t let that fool you; relationship building is anything but simple – it’s very complicated.
Think about it:
- How many people do you know?
- How many people understand what you do?
- How many of your contacts have directed prospects to you as referrals?
- How many of these referrals have converted into business?
Business networking is about more than showing up at events and shaking hands and collecting business cards. Networking for business purposes must be strategic and focused. Not everyone can help in moving your business forward.
You, however, have control over:
- Who you meet
- Where you meet them
- How you leverage your relationships for mutual benefit
- Being able to empower your local businesses.
Let’s discuss how to get into the unique 29% of the population that is separated by 6 degrees.
Three Fool-Proof Networking Strategies
An entrepreneur is aware of who butters their bread – the customer, the community, and the online follower. Without these people, a business cannot thrive or survive.
Networking allows you to communicate your expertise to potential customers. You must fertilize the field by letting them to know you and your business. Effective network strategies can enable your business to reach its full potential.
Networking should become second nature to every entrepreneur. Studies have shown that to form a habit, you must do something repeatedly for 66 days. Therefore, make it a habit to network.
The top three strategies to have in mind when networking are:
Focus on Relationship Building
There are people that you want to connect your business with. As the digital age progresses, it is advisable to practice relationship building. We tend to have micro-conversations on social media, which we do not benefit from.
Social media personas are fictional representations. They represent people, customers, that you’ll target with your message and strategy. Social media personas that are created for your business can only do so much.
Relationship-marketing personas are the other side of the business networking coin – they help people feel emotionally connected to your brand.
Begin by creating a list of personas who fit the bill and commence your relationship-building journey. Small talk does not a friend or colleague make. Combine a variety of strategies to connect with people.
Utilize different techniques to connect you to the people that you are reaching out to. You could send gift baskets and or birthday/seasonal greetings, etc. Think outside the box – reach out to those that are outside your business niche, influence, and sphere of comfort.
Be helpful and friendly to anyone and everyone who crosses your path.
Venturing into the Unknown and Cold Contacts
A social network like LinkedIn encourages you to network with people in your company, business community, or school. However, affinity networking proposes a different strategy. Affinity networking recommends branching out from your immediate business networks to connect with other people with shared interests.
You’ll get the same results if you keep on networking with the same people. So, venture out of your comfort zone. Affinity networking enables you to make connections with those who share your personal and professional interests.
Find your perfect audience member or customer in a place similar to your usual network places.
Visit pages on your social network that you haven’t been to. For example, LinkedIn Groups may be an unknown area to you or Facebook Groups. Either way, you will be pushing for a new opportunity to connect and network for your business.
Cold networking is for the confident. Focus less on friends and family and reach out to brand new people. Send out cold emails and make cold calls and invite people out to coffee and conversation.
Add value to those you reach out to. You could perhaps offer up your business connections, or whatever proves helpful to your contact. It could be as simple as providing a dentist referral!
High Intention… with low attachment!
Cold calling will need an attitude of “high intention, with low attachment.” To be clear, reach out to numerous people and wish for the best. Trust that those that respond are the ones you are meant to network with.
Reach out to potential customers via email, telephone, or social media and send them your business information. Be careful to:
- Keep it straightforward, simple and quick
- Outline where you found their information, and what it is about them that intrigued/inspired you to make contact
- Request them to set up a meeting or call
Don’t over-complicate the relationship building and networking process. Focus on starting any dialog that may land you a business opportunity. Though this process is not easy, it is highly effective and will open unimaginable doors.
Offer Your Help
Successful networkers are normally social butterflies. People love them because of their approach and not their expertise. Like butterflies, they land gently in a relationship, and don’t bulldoze others like marauding bulls.
A soft touch is usually all that is needed to connect to new people.
One way to create a soft landing is by offering a solution to a problem that one might have. Learn about other people’s problems by listening carefully. After that, don your superhero outfit, and suggest useful solutions.
A soft approach is key to this strategy. If you barge in and force a solution, you’ll cause your brand more harm than good. People organically gravitate to a person that they feel is warm, open, approachable, and ready to listen to their problems.
The two most important things to remember while performing the above three strategies is:
- Gentle business networking is a lost art and
- Your business network consists of real human beings who have feelings and emotions
If you can adopt the above-proposed strategies, you’ll find that people will gravitate toward your message. They’ll be drawn by the warm and positive way that you interact with them. Foster a spirit of mutual generosity.
The Benefits of Business Networking
New Contacts and Referrals
The first and most obvious benefit of business networking is to introduce your business to potential clients. The second benefit is to generate referrals, which you can follow up on and convert into new clients. Networking can help you identify opportunities for joint ventures, partnerships, and new fields of business that your company can venture into.
Visibility
To maintain business relationships, you need to meet with business partners and potential clients on a regular basis. Attending networking events and business luncheons raises your profile, and that can help keep you front and center in the minds of decision-makers
Staying Current
In an ever-changing business environment, it’s essential to keep up with the trends and target market conditions. Understanding your market is key to developing a marketing plan that succeeds. Therefore, regularly attending networking events, seminars, etc., will help you stay current.
Problem Solving
You can often find solutions to business needs or problems by networking. For example, if your business requires an accountant, lawyer, or bookkeeper, you could find the ideal candidate while networking. Equally, if your business is a start-up and needs financing, you may find a venture capitalist or an angel investor through networking
Sharing Experience and Knowledge
Networking is ideal for sharing experience and expanding your knowledge. Take advantage of the prior experience and viewpoints of others. You could get valuable advice from someone who is established in a particular business and has dealt internationally. For example, if you’re just starting out in the import and export industry.
Making use of other people’s experiences before investing money and time in a particular venture can be invaluable.
Confidence and Morale
Businesspeople are generally optimistic and upbeat about the future. Associating with such people is a morale booster, particularly in the challenging formative phases of starting a new business. Meeting new people can also boost your confidence if you are not naturally outgoing.
Networking can help you form new friendships with like-minded people.
The most important purpose of networking is to, one way or another, increase business revenue. The improvement of the bottom line can be immediate or develop over time. This is also the case when developing a new client relationship or when learning new managerial skills.
Make the Most of Networking
- In the digital age, meeting people in person seems outdated and old fashioned. However, when possible, try to network face-to-face. Social media platforms, for example, Twitter, Linkedin, and Facebook, are excellent ways to communicate with business associates and customers.
Social media is, however, not a substitute for meeting people in person. A simple handshake forms the basis of local business deals. Therefore, depending on the type of business that you have, you should network with people in local business groups.
- Refined business networking groups function as exchanges of ideas, business information, and support. Listening is the most critical skill when networking, and your focus should be to help the person talking. A mutually beneficial relationship will be formed if you show people that you care and want to help them.
- Don’t spread yourself too thin among various networking groups. When you join any networking group, you are required to be an active participant. That’s difficult to do if you are committed to several groups at the same time.
Focus instead on cultivating relationships in a few effective groups. Participate, contribute, and make yourself an invaluable member of the few groups you commit to. Go to meetings regularly and always be prepared to offer valuable information and resources.
Join groups that are convenient to travel to. If you have to travel long distances to meet up with your group, it’ll become unsustainable.
- Choose a networking group that’s suitable for your individual needs. A strong group such as BNI functions differently from a community service club, e.g., Rotary International. BNI’s primary purpose is to provide and exchange referrals, while Rotary International’s mission is to serve the local community
Business Networking Groups
Local Business Groups
Most towns and cities have business groups that regularly meet in their localities. The largest business group in North American is the United States Chamber of Commerce. It was formed to:
- Advocate for public policies
- Foster a healthy and competitive business environment
- Benefit businesses, communities, and families in various ways
The US CoC regularly holds business workshops, luncheons, and other networking events, and provide their members with discounts from corporations.
Other active local groups include Downtown Business Associations, Women’s Networking Associations, and Home Business Associations, to name a few.
BNI (Business Network International)
BNI was created in California in 1985 by Dr. Ivan Misner. He formed it in his quest to find ways to increase clients for his consulting business. Since its formation, BNI has grown to become a worldwide phenomenon.
BNI’s core purpose is to provide referrals. Therefore, in order to eliminate competition among members, each BNI group permits only one person from a professional specialty.
Mastermind Groups
Napoleon Hill, the author of “Think and Grow Rich,” created these groups in the early 1900s. To sharpen your personal and business skills, Mastermind groups offer:
- Brainstorming
- Peer accountability
- Education
- Support
Community Service Groups
One example of a community service group is Rotary International. It was originally formed by Paul Harris in 1905, as the Rotary Club of Chicago. He established it so the professionals drawn from diverse backgrounds could:
- Exchange ideas
- Form meaningful friendships and
- Give back to their communities
The Rotary Club is ideal for those who enjoy combining their community service with business networking
Professional Associations
Most industries have unique opportunities and challenges. Therefore, it is safe to say that those who work in a particular industry will understand their problems better than most. In addition, having an industry-specific membership can boost your professional standing.
Online/Social Media Networking Groups
The internet excels at bringing together people from all walks of life. So, online/social media business networking groups are legion and create fantastic opportunities. If you’re a business professional, you will want to be on LinkedIn. Select networking groups that are a good fit for your personal and business goals and objectives. Also, finding businesses that provide social media networking services may be key for your business.
The Diamond Lab
One of the fastest growing business development networks out there, The Diamond Lab pulls together entrepreneurs and business owners to create an ingenious b2b marketplace. They allow those business owners to apply for preferred-partnership. If accepted, those preferred partners have exclusive access to market their products, courses and services to the entire network.
I spoke to the CEO Charity Barrett to get a clearer picture of the reason for The Diamond Lab’s success. She credited the success to their highly successful internship program as well as the model and mission of The Diamond Lab. She stated: “The Diamond Lab is a place where business owners and entrepreneurs can buy and sell to each other from a safe place. All the Preferred- Partners are thoroughly vetted. So if you need something, you can find it there without worry of being gouged in the wallet or bamboozled by frauds!”
Business Networking Mistakes to Avoid
Networking is rightfully viewed as a vital part of business-building. However, we often get it wrong, very wrong! There’s a proper way to network that doesn’t involve pretentious behavior, aggressiveness, and spamming people with your business card.
Not Telling People What You Do or What You Want
“I sell/want to sell products.”
As wonderful a plan as that is, it doesn’t disclose the nature and type of your business. It is essential to explain the kind of business help that you need clearly. If selling items say, for example, “I am in the automotive industry, and I’m selling car engines. I’m looking for angel investors to help me purchase stock.”
Now you’re getting somewhere.
Lead by stating your industry, and the exact product or service that your business sells or provides. Providing piecemeal information won’t help you get the help that you require. You might miss out on an amazing opportunity simply because of inept communication!
In business networking, just as in other areas of life, clarity comes from engagement – not thought. Explore possible business ventures that you’d be interested in and set up those coffee meetings. Take the opportunity to discuss, learn, and explore.
A Weak Pitch
Practice what is known as an “elevator pitch.” An elevator pitch is one that clearly communicates your business and agenda in less than a minute. That is, the time that it would take you to get to the next floor on an elevator.
Work on a concise and precise snappy pitch that describes what you do in less than ten words. With more time, add a charming, relatable story. For example, how what you do has helped someone, or what you need from your networking colleagues.
An elevator pitch aims to introduce yourself and grab the listener’s interest. By the time you complete the pitch, your listeners should want to approach you. They should desire to get to know you more and want to help you.
If nothing else, they should want to be able to refer you to someone who can help you.
Practice, practice, practice your content, and delivery beforehand! Get feedback from your trusted colleagues. Make sure that your pitch is perfect and that you do not overrun the given time.
Being Pushy
Rein in your pushiness. There’s a thin line between passion and pushiness – a fine thin line. Be approachable, friendly, and polite, listen to others, and share your passion. People will buy into that and not an aggressive and pushy approach.
Don’t be desperate as that’ll definitely turn people off.
Underselling Yourself and Business
Unfortunately, some people will try to take advantage of you. They’ll want a discount, or for you to give away your product or service for free. Big mistake!
You can counter this by knowing your worth. Research the market rate, know your value, and the added value you bring – respect your business. Stick to your guns, don’t undervalue yourself by reducing your price.
If they are worth it, they’ll appreciate your business. If not, move on and find someone who understands what you do and what you provide. Don’t compromise on your worth!
Sharing Your Negativity
It is important to realize that your customers and networking colleagues aren’t interested in your business problems. No one wants to purchase items from a struggling business. No one wants to hear about your struggling business.
Being Uninterested
Show genuine interest in your contacts. Enquire about their well-being and what they do. Do this before they ask you about your well-being and what you do.
Ask them what they’re up to and how you can help them. Listen to them carefully so that you can mention what they revealed to you when you next meet. Remember emotional details, e.g., a problematic pitch they’re pursuing, where they’ve vacationed, their birthday (send a birthday greeting), etc.
Doing this will help you build rapport and connection. Without it, you’ll never have loyal customers or referrals. While it takes time to converse on a meaningful and emotional level, the payoff makes it worthwhile.
Failing to Follow Up
After the initial contact, make it a point to follow up and reconnect. Arrange a coffee meeting in order to chat and get to know each other better. Find out how you can unobtrusively support one another.
Bear in mind that, “Connections are made at networking events. Relationships are built outside of networking events.” Seek to cultivate relationships.
Invite your connections to your Facebook groups, LinkedIn, and other social media groups. Request their permission to add them to your mailing list. These are ways to remind them of you so that you’ll remain in their minds.
The “fortunes in the follow-up.” Because of your constant communication, they’ll seek out your services or products when they are ready to purchase or refer you.
Delivering Mediocre Products or Services
There are probably companies providing the exact same products and services as your company. So, it begs the question, why should they deal with you and not your competitor?
- What is your USP (unique selling point) that differentiates you from everyone else?
- What makes your business stand out from the crowd?
Along with building strong relationships, you need to go above and beyond the call of duty. Deliver real value and provide your customers with exceptional service. That’ll make you memorable.
Don’t be afraid to ask for testimonials for your website and referrals at the next networking meeting!
Prioritize relationship-building and put business second. In the long run, this strategy will prove beneficial to forming long-lasting business and personal relationships.