Business Networking: Complete Guide + 7 Actionable Tips for Business Owners

As a business owner, business networking is an integral part of your business growth. 

It’s a chance to sell yourself as a confident person and put your business on the map. Aside from being an awareness channel, it helps you identify stakeholders, interact with potential investors, and build your contact list.

Let’s check out what networking in business means and how you can make meaningful connections the easy way.

What Is Networking in Business?

Business networking is finding, connecting, and creating meaningful, lasting relationships with your fellow business owners, stakeholders, and customers. 

It’s also referred to as the event where business owners meet up with each other to grow their businesses in the industry. 

Networking is extremely important to your business because it can help you:

• Identify open market or partnership opportunities for your product/service,
• Gain insights into what your target audience is interested in or who your potential buyers might be,
• Get the best business advice from industry experts that can influence your plans and strategies,
• Validate your new business ideas and increase your chances of success.

As a small business owner, you can use business networking as a solid marketing strategy to convert more clients without a massive advertising budget.

7 Tips for Business Networking

According to Apollo Technical, business networking has a 40% closing rate in any sales position as in-person events provide an opportunity for lead generation. Similarly, 70% of businesses attending trade shows managed to generate new leads and increase their brand awareness.

To start building relationships in your industry, you need to adopt certain strategies and positioning techniques that’ll help you stand out. Follow our tips to create new leads at an even higher rate.

1. Be Professional

Start by setting up a professional front. Aside from looking good, you want to be able to bring out your business card or immediately connect with someone on LinkedIn without being ashamed. 

This is why it’s important to optimize your professional profile. 

People tend to be drawn to you when they perceive you as an expert. It also increases your chances of a referral, especially if you’re looking for public speaking opportunities. 

X (Twitter) is also a platform people tend to visit. Make sure your bio and views are in line with what you do. 

For example, if you talk about marketing strategies or foreign exchange, share tweets or create posts around that. If you have some that are a bit controversial, add a disclaimer to show that these views are solely yours. 

Don’t forget to add a professional headshot to show that you are approachable.

2. Attend Networking Events

Business networking events are probably the best bet for meeting your prospects. There are many online and in-person events you can attend. 

Use websites like Meetup and Eventbrite to learn about online events (and in-person ones near you). While some events are free, others require payment. 

If you want to start slow, we recommend finding webinars, X Spaces, and other types of virtual events to attend. The pressure won’t be too intense, giving you time to work on your communication and presentation skills. 

3. Set Your Networking Goals

Before meeting up with people, you need to know what you want out of that relationship. 

• Are you looking to learn more about the industry? 
• Make new friends? 
• Are you maybe looking for an investor? 

Having a specific goal can be helpful because you’ll know how well you’re doing with networking. 

Always have a specific goal in mind. For example, if your goal is to develop new connections and relationships, you can set a goal to schedule two (or three or XYZ) one-on-one meetings with contacts. Try to memorize or write down important details they share with you so that they can feel your genuine interest in them.

4. Stay up to Date on Industry Trends

Your conversations during these networking events will likely move from general to industry-specific topics. Since you have to be able to follow through and contribute to the conversations, you have to know what goes on in your industry. 

This is why staying up to date on trends is important. 

Read blogs and articles about happenings in the industry. There are many companies like Morning Brew that send out a cumulative newsletter with trending stories. 

You can follow thought leaders on social media to digest content in smaller bits. Podcasts are also a great way to keep up with trends. You can listen to them while you’re working on your daily tasks or even driving to pick up a cup of coffee. 

You should also take regular online courses to keep track of upcoming trends. As an executive, you might not have enough time to watch online courses. However, once you do dedicate time, you can pick up new things from a single lesson.

5. Ask for Referrals From Your Network

Your friends will probably have someone within their network that fits into your ideal prospect persona. You might already even know who they are. This could be a mentor, prospective client, investor, or someone you’d like to have in your circle. 

Asking your friends to make a referral or even introduce you to them has a higher chance of success because it’s built on the trust they have for that person.

According to Viral Loops, people are 90% more likely to trust a recommended brand, whereas 84% of B2B processes start with a referral.

If you don’t have a friend circle yet in your niche, start by joining online communities and your alumni network. Have regular catch-ups and sync with some of the members there.

6. Focus on Helping Others

Whether you’re at a networking event or meeting up with a new referral, it’s not always about what you can benefit from the other party. 

If that’s the case, it’ll look like you’re leeching off them. A healthy relationship requires the same amount of effort, so you have to give something in return to get something. 

Start by sharing your knowledge and expertise. Not only does it position you as an authority in your field, but you’d also genuinely help someone who might need your knowledge. 

So, in your conversations, listen. If they pose a question or seem a little confused, give some suggestions based on your experience. 

Now, this doesn’t mean you should start giving unsolicited advice in an arrogant way. But, don’t fall silent when the time for your thoughts arises. The more helpful you are, the more people tend to remember you. 

In some ways, you might get the favor back. 

7. Follow up With the People in Your Business Network

You can connect with 1,000 people on LinkedIn; it matters little if they cannot remember who you are. 

Plus, if you do receive business cards or exchange contact information, the next step of that relationship is really in your hands. Following up with a message about how you enjoyed the conversation is an excellent way to start the relationship and keep the ball rolling. 

This is why, during your conversations, it’s important to actually listen. Make mental notes of important stuff, such as: 

• Do they have a family? 
• Do they have a healthy work-life balance? 
• Do they have a favorite sport they like to watch or play? 

You might find out that you have similar interests you can bond over. They can also be great conversation starters you can use to get familiar with them. 

When collecting contact information, ask when they’d prefer to receive calls and messages. Remember, you still have to remain professional. This means not calling or sending emails during their busy hours. If they do give you time to call back, be punctual. This will make them take you more seriously. 

Over time, you might become more familiar with some of your connections and realize you all need each other. 

Create a group so you can form a community. This could be a Facebook, LinkedIn, or even a Slack group where you all can share ideas and events, ask for help, and network as a community. 

Bonus Point: Actually Commit to the Industry

If your goal is to meet up with stakeholders, you’d need to do more than just attend events. 

Being an attendee or a referral doesn’t exactly separate you from the crowd. It just offers an opportunity to put your best foot forward. 

However, taking on leadership roles and volunteering to organize meetups will help you regularly interact with these stakeholders and industry influencers. Over time, you can create connections with the right people. 

Mentoring people is also a great way to show that you’re a valuable leader. You’d be helping people grow in the industry, and it’s a great way to connect with rising stars that can help you in the future. 

Benefits of Business Networking

Business networking can seem time-consuming and stressful, especially if you haven’t attended such events before. But, the more you do it, the more you’ll feel at ease with it, and you’ll quickly start to notice direct (and indirect) benefits to your business.

Some of the reasons why networking is important include:

• Increased brand exposure,
• Partnership opportunities,
• Tapping into a new customer base,
• Getting industry insights,
• Establishing your authority within the niche,
• Exchanging best practices and know-how,
• Developing interpersonal skills.

Takeaway Point

As a small business owner, networking is the best way to get leads for your sales pipeline, investors, and actionable feedback on your processes. 

However, creating and nurturing business connections starts with the effort to meet people. So look the part by getting a solid business name and profile, getting out there, and investing in mutually beneficial relationships.