Why do business owners spend so much time at “networking” events?

This is a question that requires exploring: lots of start-ups and SMEs will book themselves into every local event they can find, and spend hours at various events meeting people, chatting, probably drinking lots of coffees, eating lovely food and generally having a nice time. But why go? What is the benefit? Lots of business owners have never thought through their networking strategy, what the aim is each time they attend an event, and even less so: measured the actual results in terms of the ROI (Return On Investment). Therefore, it is pretty well undocumented for most businesses whether networking is actually worthwhile for them – even less so, how to “do” good networking, and get the results they can to achieve.

We will explore networking strategy in a later article, but for now, we wanted to dive into the reasons why you should be networking – at least a little bit.

Expand your network and connect with potential clients/partners

Expanding one’s network and connecting with potential clients or partners is a key reason why business owners engage in networking – you become “known” in the business community. This is a must, especially for B2B businesses. By building a diverse and broad network, business owners can connect with people who can provide new perspectives, insights, and referrals, as well as offer new business opportunities. Networking can also help to build relationships with potential clients, increasing the likelihood of them becoming customers in the future. Additionally, networking provides the opportunity to connect with potential partners, collaborators, or suppliers, allowing business owners to explore new ways to grow and diversify their operations. Overall, expanding one’s network and connecting with potential clients and partners is an essential aspect of successful business development and growth – but, as we will return to in the coming weeks, not every networking event is the right one for you – each event / network will have its own demographic, and so if you are looking to meet businesses of a certain size, choose which ones to join and attend carefully.

Find new business opportunities

Finding new business opportunities is another important reason why business owners engage in networking. By connecting with a wide range of people and organizations, business owners can gain access to information about emerging trends and opportunities in their industry. Networking also provides the chance to meet potential customers, partners, and investors, allowing business owners to explore new markets and develop new products and services. Furthermore, establishing relationships with other business owners and industry leaders through networking can lead to joint ventures, collaborations, and other forms of business growth. Finding new business opportunities through networking is an effective way for business owners to drive growth and success, and even take your business in a direction you’d never considered before. This synergy can only really happen when people meet face-to-face: this may be a personal opinion of ours, but virtual networking empirically does not yield the same results as in-person equivalents.

Gain industry knowledge and stay updated on market trends

Gaining industry knowledge and staying updated on market trends is another important reason why business owners engage in networking. By interacting with other professionals in their field, business owners can learn about new technologies, best practices, and emerging trends. Networking also provides a platform for business owners to exchange ideas, share experiences, and ask for advice from other experts. This can help business owners to stay ahead of the curve in their industry, and make informed decisions about the direction of their business. Moreover, participating in networking events, conferences, and workshops can provide business owners with valuable insights and information about their industry, helping them to stay current and competitive. The most valuable things you will pick up on will be in superficial conversation – business owners generously pouring out their learnings as part of their passion, a reward for your own personal curiosity in what they do. Attending these events can also help business owners to identify new business opportunities and gain access to important resources and information. Ultimately, gaining industry knowledge and staying updated on market trends through networking is an essential aspect of effective business strategy and success- and it all comes from having pleasant chats!

Build relationships and establish trust with others in your field

Building relationships and establishing trust with others in their field is a crucial aspect of networking for business owners. Relationships with other professionals and industry leaders can provide valuable opportunities for collaboration, referral, and information sharing, as discussed above. By establishing trust and rapport with others in their field, business owners can create a supportive network of colleagues who can offer help and advice when needed – often for free, purely from the fact that you have met each other IRL (in real life!) and a genuine kindness forms between you. Additionally, building relationships through networking can lead to long-lasting partnerships, collaborations, and business opportunities, as well as provide valuable insights into the industry and market trends. Participating in networking events and activities can provide business owners with the opportunity to meet potential customers, partners, and investors, allowing them to build relationships that can benefit their business in the long term. Trust CANNOT be underestimated in business – and as human beings that we all are, this times time spent together, being open, honest, and supportive of each other. It is such a shame that so many business owners attend networking events only to sell what they offer: this self-interest is easy to spot and very telling about the way this person will “do business”. You can watch this person attend event after event, and become known as someone to avoid where possible!

Enhance your professional reputation and personal brand

Enhancing their professional reputation and personal brand is another important reason why business owners engage in networking. Networking provides business owners with the opportunity to showcase their skills, knowledge, and expertise to others in their field. By engaging in meaningful conversations and building relationships, business owners can demonstrate their professional competence and build a positive reputation in their industry. Participating in networking events and activities can help business owners to build their personal brand by showcasing their unique strengths, values, and vision for their business. On top of this, connecting with other professionals and industry leaders through networking can provide valuable exposure and recognition, helping business owners to increase their visibility and reputation. It becomes, essentially, marketing– as you provide more opportunities for people to come across you and what you do.

Should I be networking?

The short answer is yes – but if you are wavering here, hang on until our next blog about how to do it! Don’t dive in and invest money and time without putting in some thought as to what you want to achieve with it, and what your strategy will be. In the end, we MUST remember that networking is a farming strategy for your business – it will take time. Months, years maybe, and should be part of a whole range of strategies you are employing to grow your business, or achieve any of the aims stated above.

“I don’t do any networking.”

A further question to consider is why a business owner would choose NOT to network… There are a myriad of answers to this too, all perfectly justifiable. A business might offer a product so niche, that they know their target market is simply not going to be attending events. They may not wish to increase sales, nor grow the business at present. Equally, plenty of people do not like networking, and therefore double-down on other strategies for marketing and building relationships.

Where to network in Devon

We at ActionCOACH Exeter engage in a range of networking, including:

BNI City Wall – a referral-based network which requires membership and weekly attendance. Every person does a 60 second pitch asking other members for introductions to people useful to them. All activity is tracked, and members are “scored” as to how well they help generate business for other members.
Notworking Networking – a series of social events where actively “hunting” for sales and business is totally prohibited, so attendees can fully focus on building relationships first.
The Business Network – A group that meet monthly for lunch, with each person on a roundtable setup getting 3-4 minutes to explain what they can offer.
Funny Business – Put together by our own Director of Sales and Marketing, Andi Davies, a comedy night for business owners to attend, enjoy the laughs, and meet others. The organising team make an effort to introduce people to each other that they feel will be useful connections, but otherwise there is no formal pitching nor sponsorships.
B3 Networking – Complimentary coaching sessions on how to improve your Body, Brain, and Business. 10-minute 1:1 sessions are booked in with other business owners, to find out more about each other. Again, Andi will be key to hosting this event, presenting monthly on how to achieve a healthy balance between aligning your business goals with your personal goals.
Your Partnerships – An enormous range of networking events, from walks to lunches, and even Land Rover driving experience days! Well worth a look for those wanting to meet in a low-pressure and high support environment.
The Samphire Club – Run by John Harvey, this is a network that focuses again on trust before business. Events are highly social in nature, with no pitching. John has even written a book, “For the Love of Networking“, which is well worth a read.
LinkedIn Local Events – Spread across Devon, Vic Williams (Exeter), Ashley Leeds (Sidmouth) and Lesley Anderson (Teignmouth and Torbay) coordinate these wonderful events, often with tea / coffee / bacon rolls / beers as part of the package. No pitching, and you come away with some great tips to help your LinkedIn content, and some updates on how the platform maybe have changed recently.
CHSW Business Club – a quickly-growing network for business owners to support the work of the charity itself, and meet other business owners in a friendly and welcoming environment.
ActionCOACH events – As mentioned, we are part of Funny Business, B3 Networking (supported by Your Partnerships) and BNI City Wall, but we also organise our own events on at least a monthly basis, and you’re welcome to attend them all!

Next up…

One of our future blogs will focus more on the “how” of networking – which ones to pick, what to do when you attend, and how to keep a real track of what is and isn’t working in your strategy. Watch this space!

If anyone would like a totally complimentary hour with Andi Davies or Andrew De Groot about help with their networking strategy, please get in touch.