Most marketers would agree networking is a powerful, cost-effective marketing tool. But many small business owners I speak to struggle to find the time - a recent LinkedIn survey found that 49% of participants said they didn’t have enough time to network*.
But when other surveys suggest that 41% of professionals** believe that face-to-face marketing at a business event is the most effective way of finding customers, isn’t it time to make the time?
As you grow your connections and build rapport with other business owners, you will increase the likelihood of your business receiving referrals. Referrers will only suggest companies they know and trust, so the more interaction you have with your network, the better. It takes time to build trust, but the rewards are worth it – referred customers are four times more likely to make a purchase and have a 37% higher retention rate^.
There are also opportunities to expand your business through collaborations or break into new markets with the support and knowledge of your networking connections. By regularly connecting and discussing ideas, you may find new avenues for your business that you had not previously considered.
An example of this happened at TAB Derby & East Midlands, where two of our members, Rob Watson and Holly Daulby, worked together to launch a new online business. Through the joint connection with TAB, they trusted one another. Holly said, “I knew from personal experience that, with TAB behind him, Rob would have the clear business plan and the backing he’d need to get Antiques Boutique off the ground, and we were delighted Honest could help.”
Often networking isn’t just about meeting potential new customers or creating new opportunities. By growing your network, you are more likely to meet with other business owners or subject experts who can offer tips and advice or a different perspective on a problem you have been facing. You, in turn, may also find great satisfaction in helping other entrepreneurs by offering advice based on your own experience.
By attending networking events and by being active on online business platforms like LinkedIn, you can broaden awareness of your brand. By networking, you are increasing the opportunity for customers to see your brand, be that directly or via referral. Attending and contributing to network events will build trust and position your company as knowledgeable and growing.
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If you find business networking hard, you’re not alone. Many business owners I have met ‘hate’ networking. It can often feel unnatural and push you out of your comfort zone.
At TAB, we help build business owners' confidence and develop networking skills as they collaborate with business owners from non-competing industries at their board meetings. In a safe and comfortable environment, business owners can practise and hone their pitch and build relationships with fellow entrepreneurs – all skills required for effective networking.