What is "networking?" The dictionary defines it as a chain of interconnections that cross at regular intervals. Translate this to business and networking is a form of business activity involving contacts and building relationships to help achieve business goals. Networking is simply word of mouth marketing.

It is not prospecting; it is not recruiting, and it is not selling! Used properly and intentionally, it can be all three.

Effective networking can help:

• build a prospect and introduction base.
• increase visibility of your company and establish company image.
• improve the perception of your company in the community.
• gain influence on laws and regulations that impact you or your clients.
• provide each member of your team an active role in growing your business.

 Those conscientious about networking have three sets of activity to include.

1. The first, and most “popular” is the activity associated with finding new business.

• Interact with those who might know your Ideal Client/Customer. (Have a clear profile of that IC.)
• Get introductions to people who might need your help.
• Set appointments. 

2. The second includes contacts who may benefit your business at sometime in the future. This group includes trade associations, politicians, future suppliers, and strategic partners.

3. The third is more adjustable, depending on special business interests. You network to learn and grow. For instance, if you have a project in Japan, you might want to identify and build relationships with those who have experience doing business in Japan.

Networking takes time, patience, and consistency. It's a long-term process demanding many contacts over months or years to see results. That's why it's important to manage the time and financial resources you devote to networking. Don’t count on networking turning a quick sale.

Too many people think networking is socializing or trading business cards. Don't you have business cards from people you can't remember, whom you met at places you can't recall?

Rules of Networking

1.  Give out your business card only when there is good reason. Usually giving your business card creates a stutter step. Use these factors to help you decide when to use it.

• Your contact has a beneficial potential and you’ve agreed to interact in the future.
• You have agreed to exchange information and you’ve calendared the exchange.
• An agreement has been made to set an appointment. The card is secondary to the calendared appointment.
• When you take a card promptly make a note on it, reminding yourself of the location and reasons for the contact.

2.  Use a 30-second commercial. This brief explanation of your business purpose introduces you and focuses on the results you provide your clients, not just features and benefits of your products or services. Be conversational, not formal. Create a script and practice.

3.  Have a specific goal for each “networking” function. Think through the purpose of the function before you get there. If you belong to a group, your goal should always include giving and receiving introductions.

4.  Slow down to speed up. Act like a host not a guest at a networking event. Initiate contact, stand by the door - greet people as they come in or encourage introductions. Everyone is in a hurry for quick leads. When you meet someone at an event, let them do the talking; focus on finding out about them and their business. (Networking is not the time or place to get your own recognition needs met.) You can then assess the contact.

5.  Always help others before trying to get help. Be different. People who go to organizations to get business generally don't succeed in the long run. If you show you are willing and able to help others achieve their goals, they will return the favor. When you join an organization, work for them first; let them know what you can do before trying to promote your company. Take the time to discover and be discovered rather than trying to convince others of your value.

6.  Talk to everyone within a three-foot radius. Then keep moving around so you aren't talking to the same people the whole time. Good networking can even take place in an elevator.

7.  Remember your clients. The most important place to network is with your clients, not just for more business but to protect yourself should your contact leave or reorganization occurs.

8.  Track your network activity. You need some way to determine both how well you or an employee does at networking and to assess the effectiveness of the networking activity.

9.  Let people know they are part of your network. Networking is not your database. People in your network need to be cared for, nourished, and require personal contact. To get the most out of your network be a giver, the rest will naturally happen.

Networking is so important that it should be part of every job description and evaluated as standard job performance. We highly recommend that networking become part of your strategic business plan, positioned to support your own mission. The long-term benefits to entrepreneurs and companies can be huge.