Networking is of vital importance to small firms, creating valuable opportunities to establish new leads, share market and sector information as well as swapping ideas. A staggering 70% of new business is gained through word of mouth, making the benefits of reaching potential customers in this way obvious.

For smaller businesses that do not have the resources to organise their own events or supply chains, it is absolutely essential to engage in networking activity as part of a marketing strategy. Whilst most business people recognise the value of face-to-face networking, few actually practise the skills or even think about their objectives. Yet, networking remains one of the prime marketing tools available to businesses of all kinds. It's relatively cheap, time efficient and effective.

Even more so than ever in the current economic climate, networking has a role to play for SMEs. It is a direct route to contacts and business leads and utilising this opportunity could be crucial for your business. Everyone has their own way of networking and there is no sure way to success, but there are a few basic rules to follow:

1. Plan Ahead

When you are going to an event, try to get the guest list ahead of the start time and note those people you would particularly like to meet as well as sectors and titles. Decide before going what you want to get out of the event; ten business cards? Two meaningful introductions?

2. Prepare Your Pitch

Make sure you have practised your ‘pitch' before you go. Write down and rehearse how you introduce yourself and your business - it doesn't have to be word perfect or artificial, but you should be able to explain the benefits of your business offer within three minutes. The pitch is the core of your introduction to people, make it sharp and give three key messages that explain how you benefit others.

3. Business Cards at the Ready

Take plenty of business cards and make sure that they are clean and clear. The business should be plainly described and contact numbers should be bold. Be ready to hand out as many business cards as you can and collect one from everyone you speak to. Don't feel shy about handing them out on introduction - it is after all an aid to memory for the recipient.

4. Exit Your Comfort Zone

When you get there, don't spend all of your time with friends and colleagues and huddle in the corner with familiar faces. Don't ignore them, but remember you're there to get to know new people. Determine to circulate and head for a new face that looks interesting. When you've had a good talk, don't be afraid to break away and engage with someone else.

5. Take the Offensive

Don't be shy, you've nothing to lose. Go up to strangers and introduce yourself, offering a firm handshake. Look them in the eye and give them your name and business. To get the conversation going, have prepared questions ready for them such as: "What's your line of business?" and "How's business?"

6. Find Out How to Help Them

Introduce your business, concentrating on the advantages you can offer. Don't expect immediate sales or interest from people. Remember, you are building relationships, and building networks. Don't think about how this person can give you business. Think about and talk about how you could help them, through ideas or referrals. Make yourself valuable to that person as a source of business, not as a salesman.

7. Listen and Remember

You don't have to do all the talking, take time to listen to the other person's business profile, ideas and views. Concentrate on remembering their name and business. After the conversation or at the end the event, if it helps, make a note on their business card to jog your memory.


8. Follow Up

The very next day, with the event fresh in your mind, check through the contacts you have made. Sort through the business cards and send an immediate email where applicable. It might be a simple: "Good to meet you last night and interesting to hear about your business" or perhaps you might refer someone on: "Re our conversation last night you might like to phone Jim Jones, use my name." It's always better to strike early, but make sure you keep all contacts on file.


9. Build Your Network

Networking is a long-term exercise. You are building your network, adding the people you meet and the people referred on to you - remember to contribute. The more you refer businesses and third parties to each other, the more you win friends and gain a reputation - which, in turn, leads to business in the long run. Leads can often come out of the blue, sometimes many months after meeting someone who helped generate them.

10. Enjoy!

Don't get too serious about networking - don't linger with people who bore you or are clearly not interested - move on. Make the most of those who amuse you and with whom you find you share interests. Above all - be yourself and be positive about your business.

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