Why is networking important for business owners in 2023?
It’s 2023 and the virtual world is still the go-to market for networking - whether it be through Facebook groups, small business networking groups that meet via Zoom once a month, or hybrid models used by more formal networking groups.
But — in-person networking is coming back with a bang!
People miss the face-to-face interaction of networking and socializing. People miss the opportunity to shake someone’s hand when they first meet them or to actually cheers and clink glasses to celebrate a success or milestone.
So, for those new to business - what is networking?
Networking is defined as the action or process of interacting with others to
exchange information and develop professional or social contacts.
Today, February 6th kicks off International Networking Week so it’s a prime opportunity to talk about networking and why it’s essential to entrepreneurs in 2023. In my opinion, both in-person and online/virtual networking are critical to the success of start-ups and experienced entrepreneurs regardless of your industry.
Networking is important for two primary reasons:
First, it allows you to get your business in front of an audience to educate and inform them about your business, your products and services, upcoming promotions, and who you are as a business owner.
This helps get your business more well known within your market or geographic region or industry. The more that people hear and learn about your business and interact with you, you will become part of their rolodex of knowledge when they're out and about talking to people in their day-to-day lives. Plus, we are naturally more motivated to refer people when we know them or have worked with them.Second, networking helps to build your secondary referral system. Your primary network or referral system is the people you already know. For example, your family, your friends, your work colleagues, etc. But only some of them are going to be your clients, only some of them are going to buy from you either because they are interested in your products or services or because they're trying to support your business.
In order for your business to grow and thrive, you need to get your business name and your products and services out to others beyond your primary network. One of the goals of networking is to meet other entrepreneurs or learn about companies that it makes sense to connect with because you share a similar client base or client psychographics. Because of this connection, it leads to an opportunity to cross refer your services between both sets of customer groups.
For example, I’m asked regularly if I have a bookkeeper or accountant that I recommend. So over the years, I have met quite a few and have connected with 3 specifically. This opportunity allows me to help my clients, refer ‘vetted’ bookkeepers/accountants and provides a variety of options so my clients can contact each to see who best fits their needs, budget and expectations.
So networking, whether it be in-person or virtually, gives you the opportunity to connect with people that you don't know, meet new people and expand your personal and professional networks.
Keep an eye out later this week for part two on networking where I’ll share tips and strategies when networking in-person or online, discuss networking groups that I have personally joined and why, as well as how networking benefits me and my industry.
See you again soon,