Tweet

Connecting Business - The Growth of Networking

Written by: Andy Lopata

Article Overview: More and more people are leaving corporate life to set up in business on their own. With the growing number of small businesses setting up, networking is becoming more and more vital. Are you grasping the opportunity with both hands?

Connecting Business - The Growth of Networking

“The number of UK business start-ups is growing and with a strong economy and the right policies in place, we remain one of the best places in the world to be an entrepreneur.”
Patricia Hewitt, Secretary of State for Trade and Industry – January 2004

One in four people across Britain are currently running or considering starting their own business. This is confirmed by the report published in 2004 by the Small Business Service, an agency of the Department of Trade and Industry*. Small businesses are becoming a larger and larger part of the economy and the needs of the entrepreneur play a growing role in Government policy, as can been seen by the DTI’s focus on developing an ‘Enterprise Culture’.

With the economy moving away from a corporate culture, there has naturally been a shift towards new methods of exchanging information, supporting business and marketing. Whereas corporations have traditionally been able to rely on their global network of offices and huge banks of employees, many small business owners find themselves on their own. The entrepreneur can rarely afford large scale advertising and PR it is not always relevant for their business.

For both business support and to market their services most entrepreneurs are now turning to networking. The practice of ‘networking’, connecting with others for the general good, has been prevalent in both business and in life for many years. However, it is only in recent years that it has appeared in marketing texts and business books and is recognised by companies as a valuable part of their strategy.

In addition to people relying on their existing contacts, many are turning to the growing number of structured networking organisations springing up around the UK. These range from ‘quantitative’ networking events, where the aim is to get to know as many people as possible to ‘qualitative’ organisations that focus on a smaller number of people helping each other by generating referrals. Monthly and less regular events such as those often hosted by Chambers of Commerce, alongside online networks such as Ecademy would be good examples of quantitative networks, while referral groups such as Business Referral Exchange (BRE) are qualitative.

Many business people still shy away from breakfast meetings and networking events and remain sceptical of them. There have been, however, many success stories from networking in the UK. Wherever you network, it is likely that you will find individuals who have built thriving companies on the back of the contacts and referrals they have generated; business people who will tell you that they would have failed without their network and tales of personal development, such as David Summers of BMW Park Lane, who was announced as BMW Corporate Sales Executive of the Year in 2004 and who attributed much of his success to networking and to his membership of BRE.

Andrew Colwell, of Surrey based Kanda Solutions ltd. said, “For me as a small business owner, networking allows me to meet people and discuss business issues with others who have been before. I also get new business and introductions to suppliers.”

It is a positive step that so many people now recognise the need to network. The next step is to do so with a clear direction and recognition of what can be achieved and how to get there. The number of people using networking to achieve direct sales is falling but more people need to understand how to make the most of their opportunities.

For people to want to buy from you, they should have a need for your product and service at that time. How many people will you find at a networking event in that position and how will you recognise them? You can increase your chances of success by considering the extended networks of the people who you meet at these functions and benefit from the introductions they can provide.

Of course, you can’t just walk into an event and be referred to key clients through people you have just met. They need to get to know you and build strong levels of trust in you and your business. After all, people buy people and they also buy through people who they trust.

Once strong levels of trust have been built up, the people who you meet still need to recognise opportunities for you. It is vital that you can communicate clearly who you want to speak to and how you can help them. When people want to help you, paint a clear picture for them how they can do so. After all, if you don’t ask, you generally won’t get what you are looking for.

Benefits from networking do not stop with referrals. Jackie Barrie of Comms Plus, a small business based in South East London, gave her view of the benefits of networking. “I started my own writing and design business four years ago. My marketing budget is now down to zero as 100% of my work comes from people I know. It's therefore essential for me to spend a lot of time networking and meeting people. Previously, I spent twenty years in corporate life, so networking also provides all the support and friendship I used to enjoy.”

It is important for business owners to decide which route is the best for them to take and which they can commit to. There is no benefit to anyone if people attend events without the forethought of what they want to achieve and the commitment of following up on their promises. With a growing number of organisations offering networking opportunities ranging from referral-building to network building and education, decide which ones are for you and commit to them.

As more new businesses start up, networking now will provide you with the platform to develop your business and maintain a competitive advantage in the marketplace. Place your business at the centre of this new Enterprise Culture by grasping the opportunity firmly with both hands now.

*The SBS Household Survey of Entrepreneurship – July 21 2004

Related Articles
  Networking Reluctance Does Not Have to Be Fatal
  Leadership
  Creating Your Value Based Network – A 3-Step Process
  What Is Business Networking, Anyway?
  Business Networking: Stop Working the Room

Article Tags:



Related Forum Posts
Re: Make Friends...Literally BUILD them! - I agree! Networking is definitely the key word here. What does everyone feel about the different Networking platforms out there? Twitter Facebook LinkedIn what are some others?
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Re: How can a social networking site make serious money? - Hi There, It is quite interesting, that some Social Networking do produce an income. I think testimonials are always a benefit to share. See one below: This Social Network has changed my life! Every night is a Friday night and everyday is a Saturday!! Because of it, I have been able to leave the workforce 10 years early.It has given me back my life. Many of us would like to retire early. I am sure there are many more. The point is of focusing with great determination. The ongoing challenge is to stay focussed and not be sidetracked into a newer scheme or so. Also I have read, during this financial turmoil, more people turn to Social Networking for various reasons.
Re: Make Friends...Literally BUILD them! - [quote="burnsrunner":1zobscwk]I agree! Networking is definitely the key word here. What does everyone feel about the different Networking platforms out there? Twitter Facebook LinkedIn what are some others?[/quote:1zobscwk] I am on Twitter and Linkedin, have not joined Facebook yet as my time is fairly limited and one needs a lot of time to devote to all these various networking platforms. Unless you do this full time (the networking I mean). MichelleJ
Exclusive: Interview with Results - Hi Forum Members, I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles). As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business. This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business. I am looking to interview about 30 businesses across North America over the span of 3 months. At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews. I would like to extend this opportunity to members of the Forum. If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM. Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Unharnessing Creativity in Business

10 Steps to a Great Support Team

A New Year in the Pharmaceutical Industry

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.