Consumers, clients and customers have continued to become more discerning on who they buy from, at lower pricing points than ever before. This often means that they want to know more about your business before they place an order. Networking may prove the best way to stand out in your marketplace.
Since the COVID pandemic it seems that business owners have reduced the amount of networking that they routinely undertake and have substantially moved towards a more transactional over relationship model.
This may be due to a perceived efficiency rather than recognising that networking is a critical component of a successful business strategy. The days where swapping business cards after a short sales introduction as an effective strategy for sales is probably over, as customers take longer to make buying decisions and want to establish relationships with possible vendors first. This is particularly true for services where the transaction is over £500.
Why business owners should network
Opportunities for growth
Most businesses understand that regular networking opens doors to new opportunities, whether it’s finding potential clients, investors or partners. It can be the start of a relationship where both parties can establish whether they wish to do business with each other. It is important, however, to have a clear sense of purpose and direction so that you can attract the right opportunities that align to your business goals.
Businesses that don’t network tend to rely on SEO driving potential clients to websites and other company assets that have been designed to entice sales. They will miss out on establishing potential partnerships as these types of relationships tend to initiate from personal interactions. Business owners that decide not to network tend to operate in isolation.
Knowledge and insights
When you are networking with other professionals, Business Owners can gain valuable insights into industry trends, understand what potential clients want and desire and try out new business propositions and market ideas.
As you build relationships with other Business owners you can learn new techniques and test your ideas with others who are on or have taken similar business journeys to yourself.
Building a support system
When you are running your own business, it can be isolating and lonely especially if most of your key relationships are with employed people who do not understand the pressures of running a business. When you are networking properly you can develop a support system of like-minded individuals who understand the challenges and can offer advice, encouragement and mentorship. This can often be the difference between success and failure.
Enhanced visibility and reputation
When you are consistently seen in the same places, you can establish your presence in your marketplace. By enhancing your visibility and reputation, you can become the go-to person for your expertise and services. This will only work if your visibility is authentic and sustainable, and you are known for your competency and track record.
Approaching networking
Networking is more effective when you have clear objectives, and you are looking for advocates rather than sales. This ensures that you are less transactional and are more focused on relationships. By demonstrating a genuine interest in others is more likely to build trust and rapport. This also has the added benefit of increasing the number of referrals that you are likely to achieve.
Whenever you are networking you should consider how you can offer value to others.
Structured networking sessions at industry events and professional associations that are aligned with your business values and services, where introductions are facilitated can prove to be invaluable.
Networking does not have to remain in-person. Online networks like LinkedIn or social media platforms like Facebook can be invaluable for Business Owners that want to grow their business. These types of networks can open you up to international opportunities where you can generate sales and meet with like minded individuals.
Networking is a powerful tool for Business Owners which is often underused and misunderstood. In a constantly changing environment, the ability to connect and collaborate with others is not just an advantage it is a necessity.
