Networking: How It Helps Grow Your Business

One of the many challenges of a business owner is growing his business. While there are many ways to promote and market your business to ideal customers, networking is one of the most effective strategies you can use without burning a hole in your pocket.

Networking is a popular business strategy that establishes a connection with other businesspeople and potential customers. Its primary purpose is to expand your reach by letting others know more about your business, what you can do to help them, and what sets you apart from your other competitors. The personal and professional connections can help you turn prospects into loyal customers and boost your business exponentially. If you are a newbie entrepreneur, networking can be used for finding investors, business partners, customers, suppliers, and staff.

Many people think that networking is all about giving out and having coffee or lunch meetings with business friends, but it is not nearly the case. Networking is about building relationships new and old acquaintances and potential clients whom you look forward to doing your business with.

How Your Business Benefits from Networking

• Increase in Connections – Having many reliable connections helps you become successful in the business world. Among the most common problems in startup businesses making connections with the right people. Networking can effectively get your business with influential business people and your ideal customers. These pre-established connections can help with various aspects (from legal, compliance, to payroll) and give you a leg up the moment you need them. Networking can successfully forge a connection with them, allowing you to access their network.
• More Referrals – One of the great benefits of networking is meeting prospects or generating referrals. When you can successfully convert these referrals, you get much higher quality leads. This helps open more opportunities for partnerships, joint ventures, or business expansion. Also, your customers can recommend your business to other prospective clients. You simply need to follow up with these referrals to add up to your client base.
• Increased Morale and Confidence – Talking, meeting, and associating yourself with optimistic and positive businesspeople help boost morale and confidence. When you feel more confident about yourself, it will be easier to forge new friendships and connections with like-minded people. Keep in mind that the success of your business depends on how you connect and talk with your fellow businessmen and potential clients.

How to Maximize Your Business Networking

• You do not need a long speech to let people know about your business, your proposition, your products or services, etc. What you need is a one- or two-minute “elevator pitch.” A short and crisp elevator pitch is an essential tool in networking to establish a good first impression and generate interest from your potential investors or clients. Use it to get your business message to your audience.
• In today’s digital age, meeting people in person may seem old fashioned; however, this is not always the case in networking. Although you can send emails or ask prospects to get connected on LinkedIn, meeting someone personal goes a long way in terms of building trust and relationship. This makes people more likely to remember you and your business. Keep in mind a good, firm handshake never goes out of style when you want to establish a connection with other businesspersons.
• Networking does not necessarily mean talking; it also involves listening. In addition to exchanging business information and new ideas, listening helps you know what you can do to help. Networking needs to be a two-way street. It is not all about what the other party can do to help your business. Listening opens the door to establishing a mutually beneficial relationship.
• Do not spread yourself too thin. Go out there. Socialize. Manufacture serendipity. Make things happen! There are many ways you can meet new people. Schedule a coffee or lunch meeting with your prospects, attend events or trade shows, or join local business groups, such as the Canadian Chamber of Commerce.

Connections pave your way to potential prospects, but relationships seal the deal. Businesspeople must understand that networking is not all about exchanging business cards or getting connected on LinkedIn and other social media platforms. It is about building long-lasting, mutually beneficial relationships. Rejection is common, and a robust relationship can often take months or even years to build — which is why patience plays such a vital role in networking. Soon, all your hard work and effort will pay off. Lastly, consider networking as a way to learn from people who have years of experience and expertise in the business.