by E.L. Miller

Created on: February 23, 2008   Last Updated: June 13, 2009

Starting a business is no easy task, and with all that's involved, many new business owners neglect the most basic of all marketing strategies: networking. As a business owner or employee, you can jump-start the process of ramping up sales of goods or services and boosting name recognition by making contacts and fostering business relationships, all while minding your bottom line. There's no more effective or inexpensive way of promoting a business than by word-of-mouth.

WHY IT WORKS
The more people you know, the more people there are that know you. No one can give you business if they don't know you and your products or services exist. By making an effort to meet people, you immediately increase the chances that they or someone they know will become a customer of yours. When you demonstrate that you do a good job, others feel confidant about referring business to you, as their recommendation will make them look good as well. It also helps if you are able to send referrals, too, as reciprocity encourages increased referrals. Think of it as the Golden Rule of the business world.

HOW TO DO IT

Consider networking like advertising's cheaper, but more important, little cousin. It's necessary to bring in business, but often pushed aside for more pressing issues. To make networking an integral part of business, schedule time for it in the same way you schedule other appointments. Make calendar entries for time to be spent spreading the word about who you are and what you do, and keep them. Spend a little time researching how to focus your networking efforts on individuals or group that would have the most benefit to you. Set networking goals, and meet them. Most importantly, don't forget to ask for business.

WHO TO TARGET

Ideally, someone involved in a start-up business would tell everyone about it. Realistically, indiscriminate networking wastes time and resources. Instead, define your ideal customer or client. Determine where and when the best places to meet such persons are. Focus your efforts on the most desirable contacts, and work outward from there.

Even though you're narrowing your proposed contacts, don't limit yourself to the most obvious subjects. The most successful in business are those who can see the bigger picture and utilize creative solutions. There may be many untapped customer sources in your field, ones that are overlooked by your competitors. By identifying other potential customers, you increase the effectiveness and profitability of your networking

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