What is Networking

What is networking? It is simply the process of expanding your contacts with people.

Networking is carried out for different reasons whether it is to find a partner, meet like-minded people, find answers to your questions, career networking to get yourself a new job or build your business contacts.

It is by no means a new phenomenon but is just a word given to the natural process of getting to know people which has happened since humans first appeared on the earth.

What has changed though are the opportunities to expand our networks of contacts. With the advent of the internet you can now build relationships with people on the opposite side of the world and consequently the world is ‘getting smaller’ and there is now a massive global industry based around connecting people whether it be socially or for business.

Networking takes all sorts of different forms from on-line home networking forums, self-help groups and formal business networking groups through to informal liaisons that happen on the golf course or in the bar.

This website specifically focuses upon business networking with the aim of helping people like you and me who are in business to understand how you can generate more business through the process of expanding your contacts and building relationships with other like-minded business people.

What Is Business Networking?

What is business networking? It’s the process of expanding your contacts and building relationships with these people, within a business context. If one person isn’t able to help you then the chances are they will know someone who can. The more people you meet up and build relationships with the greater the chance that you will find the contacts you are looking for.

Networking is not selling
The first basic principle to understand is that networking is not about selling – it about building up relationships with people so you get to know each other. Once relationships have been built then you are likely to want to help each other, introduce you to your respective contacts and perhaps do business with one another.
‘It’s not what you know, it’s who you know’
Perhaps you are looking for a new job, looking for potential clients, have some problems that need to be solved, are looking for support or are seeking reputable suppliers. Getting to know a network of people who might be able to help you and building relationships with them is the one of the most effective ways of achieving each of these aims.

‘People buy people’
People prefer to do business with others they know like and trust. Once people have developed a positive relationship with you they will want to help you, share their expertise and buy from you if they have a need for your products or services. Even if they don’t have a need for what you are selling themselves, they will want to put you in touch with others who do or others who can help you in other ways. This is what is known as a referral.
Networking is not just about attending an organised networking event
Nowadays there are many events that facilitate the business networking process. These range from the more formal private business networking clubs and open business networking events through to informal networking on the golf course and in the bar.

But networking isn’t just about the one-off event where brief introductions are made. It is about getting to know those people where there is a mutual benefit, understanding their needs and looking for opportunities to help them so over a period of time you can both benefit from the relationship.
So, that covers what is business networking but can anyone be an effective business networker?
The answer is yes – it is just about understanding some basic principles, putting some simple strategies in place and developing some simple but effective networking techniques. The benefits of business networking are enormous and anyone can capitalise on these if they just learn how.

The Benefits Of Business Networking?

Since becoming a serious networker I have discovered so many benefits of business networking that I would never have imagined how many advantages there are. So whether you have your own small business (or large), are employed by a larger organisation or are seeking new business opportunities and sales leads, here are just some reasons why it is worth investing some time and effort into expanding your contacts.
Generation of referrals /Increased business
Fact – 70% on average of all new business is gained through word of mouth and positive recommendation. As you develop your contacts and build up positive relationships with people you will find that you will naturally gain business and sales leads as people recommend your services. People like to pass business to those they know, like and trust. But this will only happen if you have a network of contacts in the first place.
Raising your profile
Just by expanding your contacts you are raising your profile – people now you exist and know what you do and you will more likely to be thought of if your products or services are required.

Free consultancy and advice
Generally, people like to help people and are willing to impart their expertise and advice to others who they have got to know, like and trust. You will find that as you build relationships with people the value of the help that is passed to you formally or informally will exceed any costs incurred by developing the relationships in the first place.
Knowing who to turn to when you need help
The benefits of business networking are not just about generating sales leads and referrals. How much time have you wasted in the past trying to find the right person or business to solve a problem for you? Have you resorted to looking in the local telephone book for a service or plucked a name off the internet only to be disappointed with the product or service provided? By getting to know reliable contacts who can provide you with what you want or who can be trusted to recommend others is worth so much in terms of your time and money.
Break down barriers to success
As you develop your contacts you start to find people who have experienced similar problems to yourself and who can point you in the right direction. All of a sudden so much more is possible and you will find yourself achieving so much more than you will have imagined.
Uncover new opportunities
You just ‘don’t know what you don’t know’. The same goes for business networking – you never know when a contact will be useful and will present you with new opportunities. If we restrict ourselves to our own narrow network of contacts we become comfortable and limit our ideas. As soon as we get to know others and become open minded to their ideas we suddenly open ourselves up to new possibilities, perhaps a new approach to doing something or even a new business venture which we may never otherwise have thought of.
Contact with like-minded individuals and development of friendships
One basic human need is to feel connected with like-minded individuals. By extending your contacts and getting to know them you’ll soon develop a network of people you will want to spend time with, share ideas with and learn from. One of the key benefits of business networking is that I’ve personally gained a number of really good friends I can now turn to even though initially the purpose was for business.
Increased confidence
The more you network the more you get used to explaining what you do and how you can help others. Clear communication of how you can help is crucial to winning business and this will only improve the more you do.
Satisfaction from helping others
Last but by no means least, one of the biggest advantages of networking in business is the increased capacity to help others. Have you ever thought just how good it feels when you have helped someone whether it is by saving them time and effort by providing them with a useful contact, passing someone a referral or directly giving someone a piece of useful advice? The benefits of business networking just keep on coming!

What is a referral?

A referral is the opportunity to do business with someone who potentially needs your products or services and is expecting you to contact them.

The person who has referred you (the referee) should know what services or products you provide and should trust you enough to recommend you to others.

If someone has a need for your product or service and you have been recommended to them, they will be receptive to you when you contact them. If on first contact you appear to live up to your reputation then you almost certainly will get the business, often with no questions even asked about the cost of what you offer.

How much easier it is to do business this way than taking a list of free sales leads and cold calling when so often you are relying on the person ‘having a good day’ and being receptive to what you have to offer?

The difference between sales leads and a referrals
A sales lead is simply a name given to you of someone who may be useful to you or who may require your products or services. It is not qualified like a referral as this person doesn’t necessarily need what you can offer at this point in time and may not have been informed of you and what you can offer.

Business Marketing

If you have a small business marketing is an essential activity to ensure:

*people know that your product or service exists

*the benefits you offer to your potential customers are clear

*and that your product or service is appropriately priced and distributed.

Without investing at least some time and money on marketing, your business is unlikely to grow and remain competitive.

However your challenge as a small business with limited budgets is to ensure that any investment in time and money is carefully spent and gets the results you want.

What is ‘marketing?’

There are many definitions and can be taken broadly to mean the processes involved in promoting and selling and distributing your product or services. A marketing strategy is in effect a plan which helps to ensure that you maximise the resources you have in order to increase sales and remain competitive.

So, this is about deciding what your product or service offering should be and working out where and to whom you should sell it, what price is should be sold at and how best to promote it. (If you want some jargon these are known as elements of the ‘marketing mix ‘– product, price, place, promotion.)

However, we are not going to go into the technical theory of marketing here instead give you some basic information to so you can begin to understand what options you have to promote your business.