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Importance of Networking for Small Businesses

Networking is one of the essentials of running and succeeding in business. It enables entrepreneurs and business executives to come together to share and act on information, act on business opportunities, look for potential business partners, as well as recognise and form a relationship with other businesses. Without some of these connections, many of the big companies you know of today would not have come to life. It is thus safe to say networking plays a crucial role in the success of every business.

Among other factors, networking is fundamental in making you/your business known to the masses. The more people you network with, the larger the number is likely to grow; hence even better chances of your company developing. Entrepreneurs and small business owners should thus take advantage of every networking event that comes their way. Outlined below are some of the ways networking can be beneficial for your business.

1. Generate New Business Leads

Networking provides one of the best and most effective avenues for generating and acquiring new business leads. It enables you to meet with individuals and business executives that might be interested in your line of business. Simply sharing contact details with such persons (in the networking event) can help makes it easier to identify and approach prospecting investors without pestering them. The fact that you will have a one-on-one discussion or connection with the leads presents another opportunity of acquiring a business partner or two.

2. Learn from the Best

There’s a lot that one can learn from attending a face-to-face or online business networking event. For starters, it presents you with an opportunity to meet with industry leaders and learn a thing or two from them. You also get to know of tricks and practices that will/can help your business grow. If in the restaurant industry, for example, and attend an event held by a restaurant association, you can learn of the latest and best employee management practices, customer service, and even latest software programs that can boost your business processes. You can thus borrow some of these ideas and implement them in your restaurant for improved efficiency and returns on investment.

3. Stay Abreast of the Latest Business Trends and Technology

Networking with ‘pioneers’ in your industry means you get to learn ‘inside’ information on the latest business trends, and cutting-edge technology that could help your business grow. The fact that you have this information before your competition gives you a competitive edge over them, hence better chances of succeeding.

Although most people are naturally gifted in making new friends, some of us have to learn the skill quite literally. While it might not be easy to strike up a conversation on the first meet-up, being friendly alone is enough to attract someone’s attention. Start by learning the person’s name and address them by their name when/if you meet again. Come up with a system that will enable you to remember potential investors/partners better. This can be jotting down something you can relate with at the back of their business card, and such. Be sure to keep all business cards collected close by, and especially if there’s an upcoming networking event.

4. Build Confidence

Attending business conferences and other networking events helps build up your confidence. The more you mingle with these business professionals, the easier it will be to converse with them. As mentioned earlier, it’s by striking up a conversation with most of these individuals that they can give you a tip or two on how to make your business more efficient. It’s also worth noting that, staying in the company of such great minds will make you want to have a one-on-one conversation with them. The feelings of anxiety you had at the start of the conference will be overtaken by confidence. It will thus be easier to connect with these individuals, even outside the conference venue.

5. Make/Build Connections

There’s a saying in business that goes: ‘ It’s not what you know, but who you know’. As clichéd as it may sound, having relevant connections in your line of business is in itself, a resource. Simply networking can put you in the path of an influential person, or company, that can make your business known to the outside world. Some of the connections you make can come in handy when faced by a situation too. This is because your contact will also have a network of influential people who you can tap into as well. All you need to do is ask the right questions, and someone in the group will have just the answer you need.