Networking is the lifeblood of many small firms; whether face-to-face or online, it is the route to new connections, potential new customers and clients, and new business.
Yet, many business owners come away from networking events feeling disappointed that nothing concrete came out of it.
But, productive networking is not just about working your way around a room full of strangers, or connecting with like-minded business people on LinkedIn and other online forums, in the hope of reaping instant rewards.
In fact the real value of networking, the tangible business benefits, may not materialise until several months after the event, and may not even come from the person you first made contact with.
Forensic accountant Rob Miller set up his Manchester-based practice Inquesta three years ago, and says networking has been an integral part of its growth. He is a member of the networking group BNI International, and is a regular attendee at other networking events.
He says: "I've attended many different networking events, formal and informal, and one thing I've learned is that it is not only about who is actually in the room, but who those people know."
Miller recalls how this was highlighted to him while at a networking event where he found himself chatting to an executive coach.
He says: "My instinct was to walk away, as I couldn't see how she would be able to help me in any way. How wrong I was. It turned out she was previously a recruitment consultant for a firm of solicitors.
"As a forensic accountant, most of my work comes from solicitors. The lady who I had mentally 'written off' went on to introduce me to a firm that had been on my wish list for quite a while, which resulted in a new instruction for me."
On another occasion, he recalls meeting a fairly junior solicitor at a networking event who subsequently introduced him to the senior figures at his firm.
Miller says: "One of the partners then introduced me to his girlfriend, who was a solicitor at another law firm. Two years on, I was instructed on a case from her firm, and still am instructed on a regular basis, even though she has left the practice. It can take months, even years, of relationship-building before your networking bears fruit, but it has proved its worth to me."
Effective networking is a skill that can be learned, and requires time and effort to make it pay. Rather than waiting for the next networking event to come along, some business owners are constantly networking.
Susanna Simpson, founder and managing director of B2B marketing agency Limelight sets herself a goal of making one new connection every day, and then continues to build on the relationship through regular social media and email contact.
She says: "Keeping in regular contact is crucial, and I frequently email interesting articles and pertinent news stories to people I've met, which provides an excellent opportunity to catch up."
For small business owners who have yet to begin networking, a good way to start is by gradually building up a group of prospective customers who have something in common with each other, says serial entrepreneur Jerry Brand, also managing director of Caternet.
He says: "Common ground is always a winner, because if people within that networking community are facing the same problems and can relate to that, or offer each other advice that will help them get around these issues, networking becomes much easier. Quality networking is about relating to the person you are speaking to, and not about you, your product, or your sales pitch. That will come much later."
Establishing valuable new contacts takes time, and largely depends on how well you follow up on your initial meeting. Here, social media offers a fast and effective way of not only making those first connections with people, but also staying in touch, building rapport, and creating mutually beneficial relationships that can be developed further through face-to-face meetings.
Whichever platform you use, it is important to present a good bio. This is the first thing people will read about you and your business, and a good first impression can be the first step to a worthwhile connection.
Most social media platforms such as Twitter and Facebook have good search functions that enable business owners to find and connect with relevant people. Many customers and suppliers will also have a presence on these social media sites, making them valuable 'touch points' for your business.
There are no formal rules for business networking, either through social media or at formal face to face events, however, the basic principles for doing it successfully are the same; listen more than you talk, offer solutions to other people's problems, and refrain from self promotion. And that is how many productive business relationships begin.
Advertisement feature
This content has been paid for and produced to a brief agreed with O2 Business, whose brand it displays
Sign up to become a member of the Guardian Small Business Network here for more advice, insight and best practice direct to your inbox.
