Building a strong professional network can introduce you to influential contacts with valuable resources that are helpful when expanding your business.
Building a network may not be top of mind when creating a business plan, but it’s crucial to maintaining growth in today’s competitive market.
As many business professionals focus on financial investments, it can be easy to overlook our most valuable assets — people.
Entrepreneurs agree that creating the right social network is one of the first steps a business owner can take to build a successful brand.
Networking with like-minded professionals can help you develop your skills, keep up with the latest trends in your industry, and introduce you to potential mentors, partners, or clients.
Business leaders that make valuable connections early in their career can open the door to influential people with the resources needed to take their business to the next level. Your network of personal contacts can provide you with support, insight, and feedback when you need it most.
As business leaders focus on building their professional network, they can break it down into three separate and interdependent categories of networking:
Operational networking is helpful for internal responsibilities, boosts personal development, and strategic networking can steer the business in the right direction and help you find the stakeholders you need.
It’s common for people to favor operational or personal forms of networking, but a small percentage of elite professionals truly utilize strategic networking.
Anyone involved in the business needs to have good working relationships with the people who help them do their job. That includes direct managers, internal peers, and other key players such as suppliers, distributors, or customers.
Operational networking is important for the proper coordination and cooperation across people who need to know and trust each other to accomplish their tasks. It boils down to who is necessary for the job and the best way to do it.
This is usually the most natural form of networking. However, it’s mostly focused on the current tasks rather than strategic planning for the future. The power of operational networking lies in building quality relationships with mutual trust.
At a certain point, most aspiring business leaders realize they need to start building relationships beyond their internal organization.
Building an effective network with other professional associations such as alumni groups, personal interest clubs, or business communities can offer a different perspective that leads to more social innovation.
It can be hard to make time for activities unrelated to the business. Still, these contacts often produce important referrals, valuable information, and support regarding professional development, such as coaching and mentoring.
Personal networking often sets the foundation for a strong network. It creates a safe and comfortable space to master personal development skills.
Once the business leader has full confidence working within their network, they can move towards strategic networking, where the stakes may be much higher.
As your business grows, you’ll run into broader strategic issues. At this level, lateral and vertical relationships with other functional entrepreneurs can become a lifeline when figuring out how your professional contributions fit into the grand scheme of business.
Strategic networking places business owners in a thriving environment where almost everyone embodies the power to achieve the most audacious goals. When you operate next to key players with diverse backgrounds and incentives, you learn to formulate business rather than basic functional objectives. It promotes growth in the skills needed to sell ideas and compete for resources.
Case studies have shown that the ability to figure out where to go and what people and groups to enlist for your project is what it takes for sustainability.
Strategic networkers are good at indirect influencing, meaning they can convince someone in their network to get someone else (outside of the network) to take the action they need. They don’t just influence their relational environment; they shape it by hiring and moving people, suppliers, and allies to restructure a good network in line with their goals.
Operational, personal, and strategic networking are not mutually exclusive. You may find that you begin personal networking with one of your hobbies, but it leads to operational networking in other ways you didn’t see coming.
The important thing is to build inside-outside contacts for maximum leverage. Keep a strategic mindset on how leaders with different backgrounds can benefit one another instead of looking for interpersonal chemistry.
Simply make it a point to network in some capacity. The word networking includes “work” because it requires you to get out of your comfort zone, but you can go into it knowing the benefits are well worth it.
Now that we have established how important network building is for business let’s go over the best way to find the right connectors.
Many people are introverted, which can make networking even more of a challenge, so we put together a short list of helpful tips if you’re not a natural schmoozer.
The goal is not to attend a networking event and pass out as many business cards as possible. Instead of meeting as many people as possible, concentrate on the people who will benefit your career and make good partnerships.
To network properly, you must offer win/win situations where both parties can benefit from the connection. If it becomes unequal, the other person may feel cheated, making it difficult to build long-term relationships.
Typically, network members are there to ask for help. If you take the initiative and focus on supporting others the best you can, you’ll feel less stressed, and other business leaders will be happy to return the favor.
It’s not always about each party gaining something when building networks. You can create a strong rapport with a lot of people when you’re able to introduce people who can benefit from each other.
We all know what it’s like to have someone reach out to you out of the blue after not touching base for a long time. It rarely makes people feel like going out of their way because there wasn’t much effort put into sustaining the relationship.
Once you choose your network, remember to keep in touch and connect.
Use social media platforms like LinkedIn, Facebook, and Twitter to connect with various people within your industry.
LinkedIn offers a great way to develop new contacts from the connections you already have. You can also use LinkedIn as a database to research influential people related to your business.
One of the best ways to meet more like-minded people is to create a networking event. You can organize a seminar or host a community of practice that focuses on business development.
Being in a leadership role will naturally make you more connected and sought after, as people will want to rub elbows with the group's creator.
Networking with powerful leaders will benefit your business in many ways.
Entrepreneurs are more likely to do business with people they trust once they establish a relationship, and fortifying that trust almost always leads to increased status and bigger deals.
Not to mention you’ll be absorbing knowledge management from other professionals that understand the unique challenges business owners face. Tapping into that kind of advice and expertise is invaluable when learning how to balance work and home life.
Networking usually provides an opportunity for advanced training, mentoring relationships, and positive influences to keep you moving forward. There is truth to surrounding yourself with positive people who lift you and help you grow as a person and business owner.
Even for business leaders with the most elite skills and high-level education, network building is the secret ingredient to help build a business bigger than you ever imagined.
Get out there and start connecting with people within your industry. It doesn’t matter their position or who they know; practice your social skills and look for opportunities you think will benefit both parties.
Although it can be time-consuming, it should be an ongoing process where you can continuously grow personally and professionally. Challenge yourself to at least one networking event monthly and see where it takes you.
Source:
How Leaders Create and Use Networks | Harvard Business Review
How to Build a Strong Network | American Express
How Networking Can Increase Your Business' Net Worth | Entrepreneur
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