Does Networking Lead to Tangible Business Results
Networking feels like something we as business owners all need to do, but is it actually linked to business success? We did some research to find out and here is what we found.
At The Good Business Club, we talk about networking as building a community around your venture and leaning into it when needed. This goes beyond attending networking events and is so much more than just looking for the next client. So if we are putting so much time into building and nurturing this community, is it worth all the effort?
Expect increased sales
According to a survey conducted by the American Marketing Association, businesses with strong networks experience an average of 73% higher sales growth compared to businesses with weak networks, which is similar to our findings that 58% of GBC members have secured new business or increased their income directly through connections in the Club.
What is important to notice is that it might not be that sales come directly from a connection, but that person may act as a signpost and share offers with their network, or even contributes their expertise or insights that enable more sales to be unlocked. So don’t write people off if they aren’t your ideal customer. There’s so much more they can offer that can be invaluable to your income generation.
Access exclusive resources and opportunities
Building a strong network allows businesses to access a wide range of resources, including insights, expertise, and promotional opportunities. In a survey by the National Association of Small Business Owners, 75% of small business owners reported that networking helped them secure new resources for their businesses.
It’s hard to know where to look for resources and which to trust. We make it easy for members of the Club to tap into the community in a myriad of ways, including regular check-ins with the Community Manager and collating opportunities into the Member Perks resource.
More efficient and adaptable to change
A study by the MIT Center for Digital Business found that companies with strong networks are more efficient and able to respond faster to changes in the market. These companies also had lower production costs and higher levels of innovation.
Why waste your resources going through the trial-and-error process when others are open to sharing their tried and tested best practices that enable small businesses to use their resources most effectively?
Improved decision-making
A survey by the American Management Association found that companies with strong networks had more accurate information and made better decisions compared to companies with weak networks.
At the Club, we have found that 60% of members have developed their business because of the input from other members in the Club. What seems to surprise new members is walking into a space where others want to support them.
Building and nurturing a strong network may be an investment but can have a significant impact on business success. This is something we’ve measured as well as being seen in the wider business community. By accessing resources, increasing efficiency, and improving decision-making, businesses can increase sales, reduce costs, and remain competitive in an ever-changing market.
The Author
Sara is an impact-entrepreneur, good business optimist, and startup mentor, including co-founding The Good Business Club and most recently Second Voice Pro. When she’s not banging the drum for purpose-led business, you can find Sara racing around tracks on a sidecar or breaking the taboo around mental health.
Networking, Good Business Club-style
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