Establishing business relationships involves networking, the process of meeting people who can benefit your organisation. Before you attend a networking event, you must plan ahead. This means you should know what your organisation’s objectives are, how networking can achieve those objectives, where you can find networking opportunities, and who you want to network with.
Networking is the process of building long-term relationships with people who can help your organisation achieve its goals, so it takes time and effort. You need to be aware that it may also push you out of your comfort zone, especially if you are not used to interacting with people outside your organisation. However, networking is a crucial skill to have if you want your organisation to achieve success. You must strive to learn and apply this skill to build business relationships that will benefit you in the long run.
Business development encompasses a wide range of definitions but can generally be defined as the ideas and activities to improve a business. In concrete terms, these can be increasing revenue, making strategic partnerships, or expanding the business.
Meanwhile, networking can be defined in more specific ways. Networking is intentionally meeting people, making contacts, and forming relationships to gain access to business-related benefits such as career advice, job leads, business referrals, useful information and ideas, and support.
Ideally, networks serve social and business functions and mutually benefit their members. The relationships formed in networking help people create a larger world for themselves, with various new relationships, opportunities, and resources. You can think of networking as investing in the future. The intention is to develop knowledge about each other and enough trust, so neither side feels taken advantage of. This is what networking is all about – everyone has something to give to each other.
Benefits of Networking
There are four main benefits for those who practise effective networking:
Referring someone means directing them to another person who can help them. It can take many forms. For example, a satisfied client might suggest others who may need the company’s products or services. Similarly, someone who is familiar with the company’s offerings might provide an endorsement or allow the organisation to mention their name in marketing efforts. It is good networking practice and a matter of professional courtesy to thank the person who provided the referral and to keep them informed of the results of the new contact. In addition, it is important to never use someone as a referral without first securing their permission.
Networking can also generate leads. Leads are persons or other organisations who may be interested in doing business with you. Unlike people who were referred to you, leads are usually not expecting to contact or be contacted by you. For example, a colleague may recommend that you contact a person they know, but they will not inform that person about it. The lead has not given their permission to be contacted, so reaching out to them is similar to making cold calls. However, there is a potential to successfully do business with them since you already know that they already have some interest in your
Networking allows for new relationships to be established. Relationships are keys to business success; a positive relationship allows for building insights into the needs of a particular client and allow you to build trust between you and your associates. Insight into customer needs and having a positive and trusting relationship also allows you to have an opportunity to promote your products and services and resolve issues that your customer may be having more easily.
Networking can give you access to the information you may not have had access to before. Similar to referrals, if you need help, you can consult with associates who are more knowledgeable on the topic. You may also find that close relationships allow you to access information about competitors.
Organisational Objectives
An organisation’s objectives are its goals, purpose, and mission. It includes its intentions for operating a business as well. Your organisation’s objectives should be clear, specific, and achievable, so you should be able to know what these are even without having to look them up. Even before you joined the organisation, the objectives should have already been communicated to you to give you an idea of what the organisation is trying to achieve.
Your organisation can have one overall business development goal, but the activities done to achieve the goal can vary from department to department. Understanding your organisation’s objectives is important because this will guide you in planning and implementing the proper activities.
Networking objectives depend on the business development objectives. Networking is usually a method done to achieve the overall goal of the organisation. Consider the business development objectives. Do they require the involvement of people outside the organisation to be achieved?
For example, if the objective is to create more products, the organisation needs suppliers they can purchase the materials from. In this case, networking with suppliers is necessary to achieve the objective. When in doubt, you can ask relevant personnel within the organisation to confirm what the objectives are.
In case you do not know all the details of your organisation’s objectives, you can refer to the policies and procedures to guide you. Organisational policies and procedures are the things a business does to implement its business relationships. These are the written guidelines that every employee at any level of management must follow.
Personal Networking Objectives
Your personal objectives depend on your work role and your long-term career goals. Examples of personal objectives you can set for networking are:
- Increase your knowledge and learn skills
- Look for other job opportunities
- Get more clients through referrals
Generally, your personal objectives for networking should be aligned with the organisation’s objectives. Ensure that there are no major conflicts between these so that your networking activities can satisfy both personal and organisational objectives. With both personal and organisational objectives in mind, you can ask yourself the following questions (Feliciano, 2008):
- What objectives do you need to accomplish?
- Why are you doing the activities you are doing?
- How well must you do the activities according to the objectives?
- How well do you think you are doing?
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Networking is a valuable tool to increase your knowledge for the benefit of your organisation. Still, before you network with others, you need to identify opportunities where you can network. You can plan for it by following the following steps:
If your organisation requires help from external sources, such as suppliers and contractors, you can utilise networking to identify the best people who can help your organisation achieve its objectives.
Individuals that the business needs are the following:
They provide the organisation’s products. The organisation’s service quality is directly affected by the quality of the supplier’s products and the speed at which the products are made and delivered.
They work on a contractual basis for the organisation. Because they are responsible for paying their payroll taxes and benefits, they help reduce employment costs.
Customers are the ones who purchase products and services from the organisation, therefore being responsible for the revenue. They may also provide feedback which can help the organisation improve.
Within your organisation, information regarding new contacts may be shared for mutual benefit. Your colleagues are also business contacts, and you can help them by referring them to beneficial contacts you met outside the organisation.
Apart from individuals, identifying networking organisations in your location is also a profitable pursuit to undertake. If you can identify organisations that can assist you, you put yourself in a better professional position. Some common networking organisations include:
The basic concept in all formal networking organisations is that members in a group of businesspeople, each in a different line of work, make referrals to each other from among their friends, clients, and associates. They not only share customers but also develop a circle of businesses with which they do business and exchange expertise.
There are also often some specific networking organisations that cater to a specific demographic group. For example, a networking organisation may cater specifically to women in business. There are also networking groups that cater to minority groups and even those that cater to specific business sectors, such as small businesses or home-based businesses.
A good starting point for establishing a network is to become a member of professional networks catering to your field of expertise. These are accredited structured groups of organisations working together to expand their circles and increase awareness of news and trends in a specific industry.
These networks cover a wide range of contacts, including:
- Organisations can include any businesses that function in the same industry as your organisation. These can include even competitors.
- Agencies can assist you in your networking activities. These are institutions that provide services to all organisations under a specific industry. Agencies typically work on behalf of another group, business, or person.
- Associations are certified membership organisations that support the business interests of their members. Membership in such associations will lead to invitations to conferences, seminars, and meetings – all fertile fields for meeting others with goals and interests in line with yours.
The benefits of these sorts of connections are to obtain and maintain your knowledge and skills and to be able to utilise these for the benefit of the team and organisation as a whole. Many organisations recognise the importance of such affiliations and pay membership dues for their managers.
Policies and Procedures
Organisational policies and procedures outline the protocols you should follow when contacting a person or another organisation. Before participating in any events or contacting specific individuals, refer to the relevant policies and procedures your organisation has to check if you have permission to do so. Some policies may also establish a specific process that you must follow when contacting people outside the organisation.
If your organisation has a policy specifically for networking, examples of what it may include are:
- Types of events you can attend
- Confidential information and trade secrets that must not be shared
- Who can be contacted and for what purpose
- General guidelines for how you must conduct yourself
Being familiar with your organisation’s policies and procedures is essential because its purpose is to establish the practices and standards that the organisation will follow regarding compliance and organisational behaviour. It aims to achieve the following:
- Organisational policies and procedures will ensure that the organisation is in full compliance with the legislative requirements.
- The policies will create a safe environment for all employees and will ensure that all staff know the organisational expectations and objectives and how they contribute to the achievement.
- The establishment of the policies will create better work relationships between the organisation and its employees. The employees will know what the organisation expects.
Treat a networking event as a first opportunity to get in touch with people. While meeting new people is a good way to get new business, the new business relationship may be fleeting. You must think of ways you can build on this initial contact. This means finding ways to spend time with the new contacts away from professional outings.
Professional relationships are built from talking with one another, finding areas of interest that you have in common, or areas of your business that can complement your contacts’ business. If your new contact seems like they can help your organisation and you can help theirs, you can mention the common goals that your organisations share and ask for their contact details or business card. If their business card includes both their phone number and email address, you can ask them what their preferred method of being contacted is. If you have a clear idea of what your schedule looks like, you can already set a time to call or meet with them. If not, you can ask them which days and times they are most responsive so you can plan when to contact them.
Usually, contacting business relations through phone call or email is permitted by organisational policies and procedures. You need to check these policies more closely, however, if you want to establish a more casual line of communication with your business contact through different means, such as social networking sites.
When you follow up on your initial contact using the communication channels you agreed on, remember to re-introduce yourself. This means stating your name, your organisation and job title, and the event at which you first talked to them. You can also give a summary of what you talked about with them at the event to help jog their memory. Once these second introductions are over, you can proceed to explain why you contacted them, in line with your organisation’s objectives.
Business networking is most effective when you focus your efforts. When you are trying to create a powerful business network, which approach would work best? Trying to spread yourself lightly over a wide range of networking opportunities or finding the most powerful opportunities and focusing all your efforts on those? When you network with a potential new contact, keep the following in mind:
Spend time discussing what your business does but look at one area at a time. You do not want to overwhelm those individuals that you are speaking to with too much detail – things that perhaps they are never going to remember anyway. Networking is about getting information out there, not making a sale. A single opportunity with someone who should concentrate on detailing a specific area of your business. Speak precisely and provide as much detail as you can, but stay on topic
When you are at a networking event, do not try to meet everyone. Look for the specific people you want to be introduced to. If you try to meet everyone, you may waste time by meeting people who have no interest in your organisation or have no resources to help you. You can identify the individuals you should try to meet by thinking about the following:
A business card is a very important networking tool. It gets your contact details into the wallets and hands of those who you wish to do business with. Before attending a networking event, make sure you have enough copies of your business card with you. Also, ensure that the details on these cards are updated and that they look presentable, which means there should be no creases on them (Tanzon-Corre, 2017). When you receive someone else’s business card, do not write on it or bend it, as this is considered impolite. Store these cards properly to keep them in good condition. When handing out and receiving business cards, take note of how the other person does it. Cultural differences in business card etiquette can exist, so if you are unsure of how to handle cards, follow the other person’s lead. If they give their card using both hands, receive it with both hands as well. When a business card is handed out can also be subject to cultural differences. In some cultures, it is given during introductions, while in others, it is given after the conversation ends. It is best to do your research beforehand but observing what the other person does can also help.
Engaging in Networks and Associations
If your organisation is a member of professional networks, you can engage with other members by doing the following:
Research relevant organisations and individuals such as competitors and suppliers for networking. Think about what would benefit them and how you can provide it to them for a mutually beneficial agreement.
Take the initiative and be the one who makes the first contact with the organisations and individuals you have researched. This conveys your interest in establishing a professional relationship with them.
You can refer newly established organisations within the same industry to join your network to encourage growth.
If your organisation is a member of an association, you can engage with it using the following techniques:
Having a newsletter containing updates and trends in the industry keeps all members updated and allows your organisation to be seen as a credible source of information.
If possible, you may also offer opportunities for further education and improvement to other members, such as seminars or webinars. This displays your organisation’s expertise in the industry.
Instead of relying on mass marketing activities, personalise your messages. Generic messages sent to large groups of people may be ignored, while small things like using a member’s name in an email can help them feel a connection to your organisation.
Using Verbal Communication
When you attend a networking event or join a networking association, you should be prepared to speak to many people in a short period of time. The way you make the first contact with someone can leave a lasting impression, so you need to make your introduction strong and positive.
When having conversations with potential contacts, remember the following:
While speaking to someone, focus on them and what they are saying. Avoid letting your mind wander as this can break your concentration. You should also avoid interrupting them as this is impolite and makes them feel that you do not care. Listen carefully because what the other person is saying may be helpful to you and your organisation. When they see that you are listening to them intently, they may feel that you are taking them seriously, which can be beneficial if you want to establish a deeper business relationship with them.
To show that you are listening to them intently, displaying appropriate body language can help. Make eye contact with them as well, but do not stare too much. Break eye contact now and then so that the other person does not feel intimidated. You can also nod and occasionally smile to convey your interest in what they are saying. To further establish rapport, you may also try mirroring. Mirroring involves subtly copying some of the other person’s gestures. Reflecting on their facial expressions and hand movements can show that you are attentive to them. However, note that this should be subtle. Do not copy every single thing that they do, and do not try to replicate any gestures or traits that are unique to them, such as accents.
Conversations are a two-way street, so try to find the perfect balance between talking and listening. If your organisation allows you to share certain pieces of information about the business, you can share these to show the other person that you are credible and can help achieve their objectives. Refer to organisational policies and procedures, as well as consult with the relevant personnel, before revealing any information that might be confidential. Apart from business-related information, you can also share details about yourself to establish rapport. Talking about some of your interests can help you find common ground with the other person.
How formal you speak depends on the occasion and who you are speaking to. If the networking event is formal, and many of the attendees have seniority over you, it is best to speak politely and maintain a professional way of interacting with others. If the event is casual, you should still start by speaking politely, but you can ease out of the formalities once you feel that the other person is starting to speak more casually as well. As a general rule, keep your interactions friendly but polite.
Using Written Communication
If you are making initial contact with someone using written means, rules and proper etiquette still apply. Emails and messages through social networking sites are the most common methods you can try to reach someone you want to establish a business relationship with. Emails tend to be more formal, while messages can be more casual, depending on who you are trying to contact.
When communicating with someone using written means, remember the following:
If you are sending an email, ensure that the subject of your email briefly describes why you are contacting the other person. They may receive a lot of emails, so writing the proper subject makes sure that your email stands out and lets them know what it is about even before they open it.
Similar to verbal communication, your written communication should also be concise. People typically do not like to read long messages, so you should keep yours as brief as possible to prevent them from getting bored and just skimming it. Try to use short sentences and simple language and get to the point of your message as quickly as possible. You can also summarise your message at the end just in case they do end up skimming it. It is also important to be as straightforward as possible because people usually cannot tell what your tone is through written means. They have no body language or tone of voice to rely on, so they will usually interpret your message at face value. This means you should avoid using humour or sarcasm, since these may not be interpreted the way you intend. Emojis can also be misinterpreted, so you should avoid using those as well.
Before sending your email or message, check for any spelling and grammatical errors. If possible, you can have someone else proofread it for you or use an online spelling-checker. Having a second opinion helps in case you missed anything.
When ending your correspondence, use your full name, job title, and other relevant contact details to sign off. If your organisation requires you to use email ‘signatures,’ make sure that the formatting of these is correct.
You will find that the more you interact with others around you, the faster your network builds. A positive working relationship between you and others is a function of the way that you work together, and the more you work together, the closer your relationship is likely to become.
Having a big network also means that you need to know people outside of your specialty, which may require you to go out of your comfort zone and interact with different people.
You also need to remember that a network is not a short-term thing. It is aimed at attempting to build long-term relationships with individuals who can assist you in your career the most. This means that you should put in the effort to build strong relationships that will last.
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