The Benefits of Networking Groups For Small Businesses

Successful business owners often say that networking is a key element in their journey. It has opened a lot of doors for them, which eventually led to great returns for their organisation.

A lot of entrepreneurs, however, are less receptive to this strategy than others. While there are those who feel comfortable mingling with professionals in their industry, there are some who hesitate to socialise, especially with a group of practical strangers.

In fact, a study found that 41% of professionals want to network more frequently, while one in four does not do it at all.

However, networking is more than just forcing yourself to make small talk. If you want to find out if the time investment is worth it, take a look at the benefits business networking would bring to your small business:

1. More connections

The phrase “It’s not what you know, but who you know” is often thrown around in business circles—and for good reason. Networking groups can introduce you to people you would not be able to access otherwise, including potential venture capitalists, future clients, or possible business partners.

Expanding your web of connections is one of the top reasons people network. It’s not just opening the doors to fellow entrepreneurs; you would also tap into their respective networks which could be of help to you in the future.

2. Reap the rewards of helping others

Too many professionals make the mistake of attending meetups and focusing only on what they can get out of the event or how their businesses will move forward with each connection.

Networking is not about what you can take from others; it’s actually about how you can help them.

A genuine professional relationship begins when you show that you can be of value to the other person. So ask about them, refer them if possible, or help out with an issue they are experiencing.

3. Make yourself known as an expert

Networking events are not just for socialising. The more visible you are in these events, the more chances you have of carving out your name as an expert in the field.

Coming from the previous point, remember to focus on being valuable to others. Once you start doling out tips that can get others out of an entrepreneurial rut, you will start establishing yourself as a knowledgeable and reliable source of information.

With your profile raised, people are more inclined to trust you. This then results in getting more leads and referrals, as you will be top of mind when they need a product or service similar to yours.

4. Learn about new business trends

If you want to stay on top of current news and trends, networking groups are the best place to find out about them.

These trends are usually inside information, passed on via word of mouth before mainstream population picks up on them. When you get a hold of these trends, you can then prepare your business and keep your competitive edge.

5. New opportunities

The more connections you have, the more opportunities will come your way. These could come in the form of referrals, partnerships, sales, or funding. However, opportunities from business groups are not always in monetary form. At least, not at the onset.

For one, study shows that in-person meetings generate an average of 13.36 ideas, as opposed to remote meetings that generate only 10.43 ideas. Moreover, 85% of job openings are filled via networking.

6. Increase your confidence level

Counterintuitive as it may sound, networking is actually good for owners who feel anxious to mingle with other entrepreneurs.

First of all, you will be surrounded by professionals who have been in your shoes before and can offer free advice on how to get out of your bubble. Secondly, the more you expose yourself to it, the more your mind will get used to socialising.

7. Be surrounded by positive influences

Motivational speaker and self-help guru Jim Rohn once said, “You are the average of the five people you most associate with.”

As a small business owner, the early stages of your company are the most crucial to building a lasting business venture. This is where you need the most help, as you have a higher probability of committing rookie mistakes.

You need be surrounded by people who know what you are going through, help you grow, and provide feedback when needed. You will find like-minded individuals and mentors in networking groups. They can give you advice when you need it and uplift you when you are not having a good day.

8. Develop friendships

On a more personal note, friendships are likely to form in networking groups since you will talk to people in the same industry and help each other regularly.

If you run your business from your home, you mainly communicate via digital means. While that does wonders for productivity, it can also be isolating.

Networking will also help remind you how to talk to people in real life. An added bonus is that it makes the entire entrepreneurial experience less lonely.

9. Identify best practices

Small business owners are often in the dark when it comes to industry benchmarks. You need to know if your price point is too low or high, how long a project takes to complete, or the average conversion rate for your service or product.

Learning what other business owners do is an important strategy for your success. It will prevent you from committing mistakes, let you know what to expect, and give you the assurance that you are going the right direction.

10. Market your business for less cost

As a small business owner, you often don’t have the leeway to invest in billboards or work with celebrities to put your name in front of your customers. While networking plays the long game, it does produce results.

Talking to people in a meetup is already a form of advertising. With more people finding out who you are and what you offer, the greater number there are of people who might contact you later on.

In fact, study shows that 40% of prospects can be converted in face-to-face meetings, while 28% of business will be lost if you eliminate face-to-face meetings.

Although a networking event may not come cheap, the business returns will often cover the cost.

Personalise It

Building a business carves a huge chunk of your time and energy. This makes your network all the more crucial to keep you going. You need to be surrounded by people who also have the same drive and ambition as you, as well as people you can learn from.

Although the internet is a good repository for learning how to properly network, do understand that there is no “one size fits all.” Another person’s style may not work for you. Try it out, but customise it into your own personal style. This way, you will feel more comfortable. Keep in mind that if you can detect when a person is not being genuine with you, so can they.

About the Author

Nick Brown is a partner at Brighton accountants Plummer Parsons, where he is also Head of Charity Audits and Payroll. As well as being a member of the Information Technology Faculty of the Institute of Chartered Accountants, Nick is also an expert on the charity and not for profit sector, holding a diploma in Charity Accounting. You can connect with Plummer Parsons on Twitter, Facebook, Google+ or LinkedIn.

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