by Jennifer Metz

Created on: February 21, 2008   Last Updated: June 13, 2009

Entrepreneurs today often underestimate the power of networking. Networking is crucial if you desire your business to be successful. Networking is simply the idea of meeting as many people as you can, with the possibility of developing a relationship of some sort. Often this doesn't happen right away, but as time goes on, it begins to snowball.

For instance, on Day 1 of your networking for your new mortgage broker business, you meet John, an owner of another business. You quickly start up a conversation and become friendly. John doesn't need your assistance at this time, however, you hand him your business card anyway. A month later, John is at a family gathering and a relative is telling him he is thinking of buying a new home. John says, "Hey, I know someone who might be able to help you!", and he whips out his wallet, and pulls out one of your business cards. The next week, this person calls you. This person may go on to tell two others, who then each tell someone about you also. So now, you have five contacts because you met John.

Now sometimes it doesn't happen within a month, sometimes it may take a year. That is why networking must be a long term project, and most successful business people never stop networking. They realize the important of networking versus other traditional advertising practices. You may be tempted to give up after no results for a couple months, however, I encourage you to stick it out! This is a long term endeavor!

Many new entrepreneurs who start a business invest thousands of dollars in advertising right from the start. They feel this is the only way to drive consumers to them. Telephone book ads are extremely expensive and can run thousands of dollars a year., for even the smallest of ads. Newspaper advertising can also be expensive, especially if you pay a little more for a larger ad or a color ad to stand out from the hundred other advertisers. Then of course, you'll have to continue running the ad, draining even more of your budget. Advertising in magazines is also a possibility, but will put an extreme dent in your budget. There is something, besides expense, that these advertisers all have in common. They have limited shelf life. A telephone book will last the longest, and that only lasts a year. Magazines average once a month, and newspapers typically only a week, or sometimes even only a day!

Now think about networking. The power of networking lasts a lifetime. The friendships you will meet along the way will be priceless.

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