What is Business Networking?

I answered a nearly identical question last week (http://answers.yahoo.com/question/index?...





I am aware of several meanings for the phrase "business network." My first assumption would be that you are asking about small groups of business owners who participate in a "referral network."





Assuming that you are referring to business referral networks, I can relate my experience as someone who participated in a successful "business networking group."





The group accepts one business from each category (such as auto repair, dry cleaner, copier sales), and often produces a brochure that lists all the participating businesses (the brochures are then displayed by each member in their reception area). The group meets regularly (often once a week, sometimes every other week or monthly), and the owners share general information about referrals they've made to other businesses in the group; at each meeting, one or two members may be asked to make a brief (5-15 minute) presentation about their businesses.





The theory behind these groups is that business owners and managers who know each other well, and who often patronize each other's businesses, will be more comfortable referring customers to each other. If a customer has a problem, the business will try to solve it to avoid negative feedback to the person who referred the customer, since that person is a source of continuing referral business.





There are lots of variations in how these groups work.





One key area of constant struggle is the scope of each member's classification. If each business category is defined broadly ("financial planning and insurance") then fewer members can join, but if categories are defined narrowly ("stock broker," "retirement advisor," "life insurance," and "auto and home insurance") then there is likely to be overlap and potentially unpleasant competition between members.





Note that members of a networking group are never "required" to refer customers to other members, but of course if nobody refers business to a member, then that member is likely to drop out of the group. And if a member never refers customers to other members, then the other members are less likely to refer business to them.

What is Business Networking?
Do develop a network of persons into business and use each others contacts to foster the overall growth of business.