Remember the old expression “it’s not what you know but who you know”? There’s a lot of truth in it. Whether your business is on Main Street or the internet, or both, one important way to grow your business is by increasing your local networking efforts so you can expand the pool of “who you know.”
Sure, networking through Facebook and other social media sites can be helpful, but “pressing the flesh” can’t be beat. Networking locally—which is the process of interacting with others to exchange information and development contacts—is a personal activity. It can be quite time consuming, but it can pay off in several ways for your business.
Overview of local networking
The main goal of networking is to build relationships. This typically isn’t a one-shot deal; it takes repeated meetings to establish relationships. But once they are created, they can lead to life-long relationships and many opportunities for your business (explained later).
Networking can occur anywhere, including:
- Networking groups, such as BNI
- Business and professional organizations, such as local bar association meetings
- Local chamber of commerce events
- Trade shows
- Alumni events
- Charity and volunteer events.
Increase referrals and leads
The ultimate goal for networking is to increase business. It’s been estimated that nearly one-third (28%) of business relies on maintaining strong networking connections. How is this done? Networking can result in referrals to your company and leads you can pursue. As stated earlier, this success doesn’t happen instantly. But there can be significant results. For example, 70% of businesses acquired new leads using trade shows as a business networking strategy.
Build partnerships and collaborations
You may be able to create partnership opportunities with complementary businesses in your area. For example, if you have a boutique, you may be able to get your merchandise into beauty salons.
You can also work together with other businesses for special events. For example, many locations have “restaurant week,” and your restaurant can participate.
Learn about local developments and best practices
What’s happening in your industry? What’s happening in your local government? Local networking helps you learn about what’s happening in your community, such as proposed development and how it may impact your business.
How to network effectively
Whether you’re naturally outgoing or find it challenging to speak to strangers, there are certain practices that you can use to optimize your networking efforts:
Be interested in what people are doing. As Dale Carnegie said “You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.” Get people talking about themselves and you’re sure to learn a lot about their businesses.
Share business cards. Even though we’re in a digital age, old-fashioned paper business cards still matter. One source said “68% of small business owners find business cards to be useful when meeting new contacts face-to-face.” You can easily take notes on the cards to remind you of the person, their needs, or any other relevant information. You can then us an app, such as CamCard, to scan and store business cards digitally. Or you can save the card information in your smartphone.
Offer assistance. To paraphrase President John Kennedy, ask not what the person can do for you, but what you can do for the person. Provide a referral or resource to those you meet at a networking event.
Follow-up. Meeting someone through networking probably won’t produce automatic results. It’s up to you to continue the conversation. For example, if you’ve offered to provide information, follow-up with it promptly.
Assess your networking ROI. Factoring in the cost and time of networking, track how many referrals you obtained, what is the rate of conversion (referral → customer), and other metrics for relevant to your business. This can help you determine which networking venues work best for you.
Final thought
“Succeeding in business is all about making connections.“ – Richard Branson
In today’s business climate, you’re probably focusing your efforts on digital activities, such as learning and deploying AI. But don’t overlook the importance of in-person efforts. Networking locally is still a vital aspect of small business marketing, learning, and growing.
Find related blogs about scaling your business in this list here.
