Why is Networking in Business so Important?

Business is a web – a web of connections with unlimited opportunities for growth. The more knowledge you absorb, the more support you have, and your experience with and exposure to the opinions and perspectives of others, will give you a sizable leg-up in the business world. Consistent involvement and connections will get you far in this field so it’s crucial to start networking early.

What is Networking?

In business, networking is the professional terminology for “socializing” or “collaborating” proactively. It is the act of cultivating and maintaining professional relationships with other individuals or businesses, usually involved in a similar field or industry to your own. Networking is a strategic approach that involves social meetings and connecting with people to exchange information, ideas, and resources for mutual benefit.

Networking can be either formal or informal depending on the context of the interaction, personal preference, and the relationship between attending parties. Settings for such meetings can vary from conferences, seminars, workshops, or trade shows to lunch or coffee meet-ups and sometimes even just a phone call or video chat. 

Especially if you are just starting out in the field, it’s important to strategically build your network of professionals; these are people who are successful in your line of work that you can turn to for support or advice and that have the resources to help you in the future. 

Benefits of Networking

Building a strong network is a very strenuous and time-consuming process, however, the benefits can be long-lasting.

Knowledge Exchange

Collaboration, in the grand scheme of things, is used all the time, not just for business growth. What networking does is create a platform where people can exchange knowledge. This includes new business ideas or ventures, experience, industry insights, problem-solving strategies, and more.

Individuals are able to learn from each other, stay updated on industry trends, and acquire new skills just through communication. 

Building Connections 

When you build and thoughtfully maintain professional relationships, they often create opportunities in the future. Networking allows people to connect with like-minded individuals, industry experts, and others, who are usually in a position to give advice and provide insights. 

By establishing relationships with those in your industry who have been successful, you are presented with the opportunity for potential partnerships, further collaboration, and an abundance of new ventures. Remember, you never know how powerful someone is, so always take the chance and chat!

Support and Mentorship

Networking is often linked to mentorship; a way for seasoned professionals to help those who are just beginning their career, like they once were. Often, senior executives will help new entrepreneurs navigate their careers and provide them with valuable advice and resources for success. 

Industry Referrals

Maintaining a strong network can result in a variety of referrals or recommendations down the line. This is when respect and nurturing of relationships can be crucial. There are many instances where you could get a job offer or recommendation from an individual you have collaborated with. In 2019, 85% of all job openings were filled through networking.

Additionally, through networking with the right people, you can increase the visibility of your business throughout your community. This can lead to an increase in brand recognition, credibility, and growth.  

Effective networking involves being proactive, genuine, and respectful in building relationships. It requires active listening, understanding others, and offering support where appropriate. Building a strong network takes time and effort, but the benefits for business growth are significant.

Categorised in: Mentoring, Networking, Professional Development