How Networking Helps Your Small Business

By Joleen Small

Merriam-Webster’s dictionary defines networking as “the cultivation of productive relationships for employment or business.”  Building relationships can work wonders for growing your company. It can help you gain new customers, learn more about your industry or meet others with whom you will be able to partner. Networking can bring visibility to your operation or help you connect with suppliers, vendors, and other potential business partners if you are a new player in the industry. It doesn’t have to be limited to awkward small talk at a networking event, but can include attending or hosting community functions, company get-togethers, or virtual conferences. The main goal is to keep your network active by following up and staying in touch with the connections you make. Also, make sure the networking relationship is mutually beneficial by not only focusing on what you need for your small business. If you learn any information that someone else may find valuable, share it. This can help them with their business and keep you in mind if they come across something they can share to help you with yours.

External Networking

External networking means networking with others outside of your company. Meeting others from the same industry as yours can help you learn more about the industry and gain information about what’s currently happening in it. The same can be said for meeting someone from a complementary field. Not only can you learn information about an industry that may affect yours, but you may also be able to form partnerships with a company that can help you expand your reach. Your networking “Can lead to strategic alliances or joint ventures, or else open up greater access to unexplored markets or business opportunities,” according to the Encyclopedia of Business and Finances. If you are not looking to expand just yet, you may be able to create a referral network that can alert you about potential candidates for any vacancies you may have or for a consultant to help advise on a specific area in your small business. Examples of external networking include joining chambers of commerce, trade associations, trade shows and attending conferences and conventions.

Internal Networking

Internal Networking occurs when employees within the same company form connections. Meeting and interacting with others within the same organization can not only be a good way for employees to engage with each other outside of work, it can also foster trust and collaboration that can lead to better connection and loyalty. “Internal marketing theory suggests organizations are more likely to enhance employee satisfaction and loyalty by treating employees similar to ‘valued’ customers,” writes the Journal of Consumer Satisfaction, Dissatisfaction, and Complaining Behavior. This and the morale boost it offers come in handy when working on projects within the company. Each department may no longer think it is working in a silo, but understands what another department contributes and how their work affects them. New and better ways of completing projects or ideas for new projects altogether can come from this understanding and collaboration. Examples of internal networking include teambuilding exercises and company outings. 

Virtual networking

Virtual networking occurs, just as its name suggests, when meeting people and connecting online. This form of networking took off during the COVID-19 pandemic and still is a good way to promote or grow your business. One thing that makes virtual networking viable is the opportunity to connect with business people and other entrepreneurs worldwide without leaving your home or office. This form of networking offers the opportunity to expand your business and knowledge more than in-person networking is able. You may engage in virtual networking by attending virtual conferences, webinars, and other virtual events and by using social media networks such as Facebook and LinkedIn.

Building Community

Building a community can be a powerful networking tool, especially for small businesses. “Small businesses have the unique ability to create valuable customer experiences because they are not constrained by corporate policies,” says Alex de Carvalho, Social Business Manager at IBM. This is because small businesses have a better opportunity to develop a meaningful relationship with their customers than a large corporation. “Community members tend to be invested in the community they are a part of and participate in it to the point where they become ambassadors of the community.” This helps foster word-of-mouth recommendations, greater trust, repeat visits and regular opportunities for interaction with customers and prospects.”

You may build community by finding an interest that potential customers share with your business, whether it’s based on location, a cause, a lifestyle or around the business itself. For instance, a sports equipment store may build community around the products they sell. Anyone looking for athletic equipment may immediately think of this store. To start doing this, you should create a unique brand that resonates emotionally with your customers. After doing this, attend community and charity events, sponsor events with similar values, attend conferences or host your own