Networking for Small Business Owners

When looking at starting or growing your business, networking can provide lots of benefits, from camaraderie with other small business owners and entrepreneurs to providing a source of new customers and suppliers. There are many different types of networking opportunities from informal chats to highly structured groups, and everything in between. There are networking opportunities that will fit your style and business type.

The following tips will help you network more successfully:

Business Networking Tip #1: Clearly determine the purpose of your networking activity.

There are dozens if not hundreds of networking activities that you can choose to attend. Some gatherings have another primary function where networking is simply an added bonus. These types of networking activities include conferences and awards ceremonies. On the other end of the spectrum, there are groups designed specifically for the purpose of business networking. You can find them by searching the business section of your local newspaper, particularly under "Coming Events". Many of these are targeted specifically towards sales lead generation where you are required to provide leads to others in the group.

In order to make the most of any network opportunity, make sure that you know what you want to get out of it. Do you want to learn more about current trends in your industry? Do you want new customers? Do you want to simply be around other small business owners to feel like you're not in this alone? Once you have determined what you want to get out of the experience, you will be much more likely to succeed.

Business Networking Tip #2: Introduce your business to your network.

There's an old adage that you never get a second chance to make a first impression. That is no truer than for the entrepreneur. Before you ever step foot into a business networking situation, make sure you have developed and practiced a 10-second and a 30-second introduction. For example, your 10-second introduction might be: "We bring new and innovative communications products to the sales and marketing departments of large corporations." Your 30-second presentation would elaborate more on what you do and will include how you do, with a concrete example of a product or service you offer.

Your presentation should be smooth and come naturally. Practice is the key here, especially if you are nervous and shy in large groups.

Business Networking Tip #3: Ask questions about others' companies.

A common problem at networking functions is that business owners are so focused on reaping the rewards of attending the function that they talk far more than they listen. Who are you more likely to gravitate to; someone who goes on and on about their own business or someone who appears genuinely interested in yours? Actively listen when others describe their businesses and ask them questions to help you understand what they do better. Ask them what you can do to help them meet their own networking goals. Your networking contacts are more likely to refer their customers to you if you've shown that you have the ability to listen.

Business Networking Tip #4: Strategize ways to introduce your networks' companies to your own customers and contacts.

Once again, networking is as much (or more!) about giving as it is about receiving. Spend time figuring out how you can help other businesses in the network meet their goals. Ask them what they're looking for. It may be to source new customers or new suppliers or simply to interact with other business owners.

If you show that you are proactively trying to help others in the network, that same commitment will come back to you many times over.

Business Networking Tip #5: Thank your network members for each and every referral.

Every single time one of your network contacts makes an effort to help you meet your goals, make sure that you take the time to thank them for it in some way. It might be as simple as dropping them a thank you card in the mail (a much more personal and appreciated option than an email) or sending them some flowers or other token of your appreciation. This is important whether your contact's effort results in success or not. For example, if one of your network contacts refers a new customer to you and that customer decides to purchase from someone else, thank your contact regardless. Their next referral might end up being a significant one.

Don't be afraid of networking. Just get out there and start talking to other business owners. The possibilities are endless!