The secrets of successful networking

The chances are that you are already networking regularly without realising it. Alternatively, you could be attending lots of promising events, but not meeting the valuable contacts you'd hoped to. We look at how to get the most out of networking opportunities

According to Karen Gill, managing director of the women's business-support group Everywoman, networking is "absolutely critical" to all small or medium-sized businesses, although many still don't realise it.

"Whether businesses realise the importance of networking often depends on the skills and background of the owner-manager. If they have a history of sales and marketing then they probably realise its value, otherwise they might not," explains Gill.

Networking is about gathering, collecting and distributing information. It also involves doing favours for your contacts that they might, in turn, repay. The goal is to make connections with people who may be able to help you achieve your aims.

Many people think of networking as attending an event and "working a room", but it also takes place every time you meet up with a business associate or contact. "Any time you meet other people and tell them about your business, you are networking," Gill adds. "You never know who you are talking to and who they might know."

Of course, in order to get the maximum benefit from networking it helps to target events and places where you think you are most likely to meet useful contacts. "Do some research into events in your area and industry, then just ring them up and ask to be sent some details," Gill advises.

It is not unusual for people to avoid specific networking events because they feel daunted by them. Heather White, a networking strategist at a company called the Magic of Networking, acknowledges that most people are not natural networkers. She believes many find the situation uncomfortable because they think they are expected to act like sales people.

"Networking is not about selling - although that can be one of many results," White explains. "It's about developing confidence, gathering market intelligence, finding new business opportunities, career development and making friends."

So how can you make networking work for you? One thing you should always bear in mind, according to Karen Gill, is that it is very rare for someone to be rude if you approach them at an event and say 'hello'. In fact, they will probably be pleased that you have chosen to talk to them.

What you do need to do, Gill believes, is work out your objectives before attending any event and not be shy about communicating them.

This means you should be able to tell people in 30 seconds what your business does and what its goals are for the future - whether this is employing new staff, getting a product to market or raising capital. By doing this you might give the other person cause to remember someone who could help you, while they might be able to assist you themselves.

After attending any networking event you should file any business cards you have been given and email anyone you had a particularly interesting or valuable conversation with, to say that you enjoyed meeting them. You should also ensure that you action any promises you made.

Gill is also keen to stress that every relationship is individual and should be taken at its own pace. Some might come to nothing, while others might evolve into a mutually beneficial relationship. "You can't stalk people, and they will soon realise if you are going back to the office and bulk emailing any contacts you have made," she warns. "If you take care of the relationships they are more likely to blossom."

So how often should you be out there forging new friendships? "Most people think all networking takes place at events," says White, "but it is also about meeting up with previous contacts. You can't build value when you are constantly meeting new people."

Before you protest that you don't have enough time to "go on a jolly", consider all the possible benefits networking could bring now and in the future. It is also worth remembering that networking doesn't have to be the sole responsibility of the owner-manager - anyone from your company can network.

"I always tell people who dislike networking not to do it," says White, "because they will do more damage than good and come across as arrogant or aloof. The solution might be to network in smaller, more intimate groups, or to send another company representative in their place."

One alternative you can consider, if you are shy, or pushed for time, is online networking. There are forums that allow businessmen and women to post online messages, and Gill believes this can be as effective as face-to-face contact.

"The main advantage of online networking is that it is a lot quicker and you can be a lot more direct. For example, you can post a message saying 'I am looking for X, Y and Z, can anyone help me?' This brings results for people a lot of the time."

How to work a room - Heather White's networking tips

One of the most common questions from would-be networkers, according to White, is how to work a room. Although she acknowledges that this is an important skill, she also warns against doing it in inappropriate situations.

"You should behave differently at a conference as opposed to an event where everyone is there only to network," she advises. "At a conference, I would only talk to two or three people a day, and I would discuss the subject matter rather than diving in with who I am and what I do."

When at an event intended primarily for networking, White advises following these seven golden rules:

1. Get rid of handbags and briefcases - just carry your business cards.
2. Wear your badge at chest-height, so people can see it when you shake hands.
3. Get yourself a drink or some food - not both. Strike up a light conversation at the buffet as a warm-up exercise.
4. Stand on your own for a bit, on the edge of the room. At some point you will probably be alone and you need to feel comfortable in this situation.
5. Look around for people who look interesting and friendly. Join a group when the conversation doesn't look too serious. Causing a break in a deep conversation will be considered rude.
6. Say: "I'd like to carry on circulating, it's been a pleasure talking to you", or use a similar way to excuse yourself politely.
7. Look for a person you find daunting and make a point of chatting with them - it will help boost your confidence for future networking events.