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NETWORKING: Types, Barriers
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and Overcoming the Barriers

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Submitted By: MOHIT GOYAL
MBA GEN (A)

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Contents

BUSINESS NETWORKS OVERVIEW.................................................2

BRIEF HISTORY............................................................................ 2

TYPES OF BUSINESS NETWORKS...................................................4

BARRIERS TO NETWORKING..........................................................7

OVERCOMING THE BARRIERS TO NETWORKING..........................10

COMMUNICATION NETWORK IN BUSINESS ORGANIZATION..........13

BASIC BUSINESS NETWORKING TIPS...........................................17

REFERENCES............................................................................... 20

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BUSINESS NETWORKS OVERVIEW

A business network is a type of business social network which is developed to help


businesspeople connect with other managers and entrepreneurs to further each other's business
interests by forming mutually beneficial business relationships. There are several prominent
business networking organizations that create models of business networking activity that, when
followed, allow the business person to build new business relationships and generate business
opportunities at the same time. A professional network service is an implementation of
information technology in support of business networking. Many business people contend
business networking is a more cost-effective method of generating new business than advertising
or public relations efforts. This is because business networking is a low-cost activity that
involves more personal commitment than company money. In the case of a formal business
network, its members may agree to meet weekly or monthly or less frequently, with the purpose
of sharing information, exchanging business leads and making referrals to fellow members. To
complement this business activity, members often meet outside this circle, on their own time, and
build their own one-to-one business relationship with fellow members. In the 2000s, using the
Internet and teleconferencing services, it is possible for businesspeople from a similar industry or
sector to connect even if they live in different regions or countries.

BRIEF HISTORY

Before online business networking, there existed face-to-face networking for business. This was
achieved through a number of techniques such as trade show marketing and loyalty programs.
Though these techniques have been proven to still be an effective source of income, many
companies now focus more on online marketing due to the ability to track every detail of a
campaign and justify the expenditure involved in setting up one of these campaigns.
"Schmoozing" or "rubbing elbows" are expressions used among professional business
professionals for introducing and meeting one another in a business context, and establishing
business rapport.

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Networking can be an effective way for job-seekers to gain a competitive edge over others in the
job-market. The skilled networker cultivates personal relationships with prospective employers
and selection panelists, in the hope that these personal affections will influence future hiring
decisions. This form of networking has raised ethical concerns. The objection is that it
constitutes an attempt to corrupt formal selection processes. The networker is accused of seeking
non-meritocratic advantage over other candidates; advantage that is based on personal fondness
rather than on any objective appraisal of which candidate is most qualified for the position.

NETWORKED BUSINESS

Many businesses use networking as a key factor in their marketing plan. It helps to develop a
strong feeling of trust between those involved and play a big part in raising the profile of a
company. Suppliers and businesses can be seen as networked businesses, and will tend to source
the business and their suppliers through their existing relationships and those of the companies
they work closely with. Networked businesses tend to be open, random, and supportive, whereas
those relying on hierarchical, traditional managed approaches are closed, selective, and
controlling. These phrases were first used by Thomas Power, businessman and chairman of
Ecademy, an online business network, in 2009.

Networks are emerging as more suitable organizational forms to meet challenges of the 21 st
century. Success in such fiercely competitive world demands speedy and cost-effective exchange
of vast amount of information. This exchange is possible through modern communication
networks. Characteristics and types of network organisation and communication network are
discussed. The role of communicati6n networks in network organisation is examined through a
case study of global consulting firms. The findings confirm the important role played by
communication networks in network organisations.

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TYPES OF BUSINESS NETWORKS

We often speak of a business network without consciously realizing that every organization is
built and run on more than one type of network. The word 'network' is most commonly
associated in business peoples' minds with the infrastructure used to connect computing assets
within and between organizations, so they may share data and information.

However, there are many other types of networks commonly found in the business world,
including:

Voice: Don't forget about the POTS (Plain Old Telephone System) connected by miles of
copper wire. This has been a very valuable information network within and between businesses
for decades now. POTS has even carried digital data between fax machines and computers
equipped with modems. Increasingly, business voice communication is being done on mobile
phones linked together by cellular networks or on smartphones connected to Voice over Internet
Protocol (VoIP) networks.

Financial: There are many types of financial networks. Some allow printed money and checks
to flow between individuals and banks, while others enable electronic transfer of funds.
Automated Teller Machine (ATM) networks are a familiar example of the former. They may link
financial activity within one bank (i.e. Bank of America's branded ATM machines) or between a
consortium of financial institutions (i.e. the CIRRUS network). Businesses are more likely to use
the Automated Clearing House (ACH) network, through which their banks transmit electronic
payment requests and disbursements. Even financial instruments may be networked through the
practice of creating derivative assets, as we learned following the near collapse of the US
financial industry in 2008.

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Supply: This network type hardly needs an introduction. The last few decades have seen the
rise of comprehensive, managed supply chains, through which manufacturers buy the raw
materials and fabricated components needed to produce finished goods. Impressive, efficient
networks, through which large retailers source the products they sell, have also been built.

Transportation: Networks have long existed to facilitate the movement of physical goods
and people. DHL, FedEx, and UPS are well-known examples of package distribution networks.
ABF Freight, CSX, and Schumacher transport goods between manufacturers, warehouses,
retailers, and buyers. Amtrak, Greyhound, and JetBlue are all in the business of transporting
people through networks of destinations.

Retail: There are two types of retail networks, those affiliated with one specific brand and
others that sell goods from multiple manufacturers. The former is either owned and operated by
the brand itself or franchised to third-party operators. Apple and Nike operate stores that sell
primarily their own products. General Motors and McDonalds are well known examples of retail
franchises with exclusive brand affiliations. Many retailers, such as BestBuy and Macy's operate
wholly-owned, branded networks of stores that sell merchandise from a wide variety of
manufacturers. And many manufacturers, such as Hewlett-Packard and Whirlpool, sell their
products through multiple channel partners, many of whom also offer competitors' wares.

Service: Many businesses have built large networks of wholly-owned or franchised locations
where services are sold and performed. Some exist only to service products from a specific
manufacturer, such as Maytag or Ford. Others, such as Jiffy Lube and Geeks On Call, are
agnostic to the brand of the product. Other service networks focus on taking care of people;
Lahey Clinic and SuperCuts are two examples.

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Content: Data, information, and knowledge that we create and consume in the course of doing
business flows over physical computing and voice networks. However, content may also
distributed to multiple networked nodes of affiliates. Radio and television networks are clear
examples of distributing centrally-created content through multiple broadcasting affiliates.
Content Distribution Networks are a modern equivalent for digitized content. Content can also be
assembled from multiple network nodes and published in a spokes-to-hub model. Within
businesses, compound documents take content from multiple individual documents and merge it
into a single document. Web content management systems are used by businesses to gather
digital text, images, audio, and video from multiple sources and publish it together on web pages.

Social: These days, it seems that the word 'network' is most frequently used in reference to the
relationships between people, the sum of which is referred to as a social network. While social
networks have always been foundational to business, and have even been studied for some time
by academics, executives and employees are just now considering what networks of people exist
in (and spill outside of) their organization and how those social networks can be used to produce
measurable, positive impact business results.

This list should be regarded as a starting point, not a comprehensive catalog of networks types
used to conduct business. What other types of networks do you see deployed within and between
businesses? Please leave examples in the comments below.

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BARRIERS TO NETWORKING

Networking is crucial for career growth and is the stepping stone that can help you reach your
dreams and goals. Many people think networking is simply building relationships and meeting
people. But, strategic networking is different. Strategic networking is focused with a goal in
mind. Here are some barriers that can stand in the way of strategic networking:

1) Not being clear about what you want: You need to know where you want to go.
Write it down, create a career map and identify the holes that might arise. A recent study
showed that only 5% of Americans have goals written down. Being clear about what you want
and writing it down is the only way that you will be able to find out who you need to talk to in
order to learn the information you need to reach your goals. It is your responsibility to be clearly
focused on what you want from a networking contact. Prepare a 30 second script that describes
what you are exactly seeking from this networking. Use the script, practice, practice, practice.
Stay away from generalities, be specific.

2) Being afraid to ask others for help. I recently heard a man in my company say that
women often approach him saying I know you are busy, but can you help me with something?
But, when men approach him, they say I need your help and what a difference that can make.
Be assertive and dont be afraid to ask others for help. People cant read your mind! Let them
know why you are reaching out to them and how they can help you get to the next level in your
career.

3) Not having time to network. This is my biggest pitfall. I am often too busy with work
and school to reach out and connect with someone over lunch. The key that I am working on is
changing my thinking so that networking is a part of my job. I have learned that you have to
make it a priority and this is my goal over the next year. If possible, think of your job as 50% in
office and 50% connecting and building relationships with those in your office. Many people
think networking is simply waste of time, but actually it saves time. Isnt it quicker to ask
directions to the computer section of five level department stores than to wander around

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aimlessly guessing where it might be? With your resource base, you can find exactly what you
need and want.

4) I am an introvert: If you are an introvert like me, it is hard to be open and let strangers
into your life. To network, you have to be open and curious. You must also show up and be
present in all conversations. Sometimes the hardest part is getting to the event but you will be
glad you did once you get there. Meet one person and start speaking with them and asking
questions. This way, it will be easier to meet others since you know one person very well. Also,
dont be afraid to speak up if you have something to say and have a question ready to ask such as
How did you get started in your career or What are you passionate about?

5) Not sure who to connect with. Easy! Let your friends and family know your dreams
and goals and ask them if they have any connections that they could introduce you to. Another
great tip is every time you get to know someone new, ask them if there is anyone else they know
that they could introduce you to. Never leave a meeting without another connection! You dont
need plenty of people, you only need to know one person to start networking. You may get
assistance, unless a person is too busy or doesnt have expertise or just uncooperative. Even if
that individual cant help you directly, s/he may know someone who can help you. You can
generate a potential base of 10 to 100 contacts from knowing only two people.

6) Lack of Confidence. Change your attitude and build your confidence about networking.
Set a clear goal and follow your plan. Stick with the tell-listen, and dont sell mentality, and
eventually you will find networking is less threatening activity.

7) Afraid of Rejection. Generally, people dont like being rejected. Use new way of
approach that reduces rejection. When you meet with people, let them know that you are looking
for a referral, prospect, or service provider. Rejection is an expected part of life, and view
rejection as moving one step closer to your goal. If someone says no, I am too busy? You are
back to where you started nothing lost at all.

8) Dont know what to Say. If you are starting from scratch without any contact or lead,
go to public library, Internet. Make sure you are well prepared, and practice, practice, practice!
Ask question about themselves people love to talk about themselves. Start with an open ended

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question to break the ice. Tell me about your holiday; Which of the session you are most
interested, and why? Etc.

9) Dont like other people solve my Problems. Asking people for their opinions or
experiences help to make your best decision. You are not asking anyone to solve your problems
or make decision for you. Collect information from various sources to generate a list of
alternatives. You have to make decision to solve your problems.

10) Seem like- I am Begging. Asking about something is not begging. Ask for information,
advice and an opinion is to achieve best results. Believe or not, people love to give their
opinions. Behave like a professional, not needy. Remember Networking is give and take, ask
and offer.

11) Dont like people use You. Network is an exchange to give more than you get. Show
yourself as a resource person and you have something to offer. Build-up your references so that
eventually people seek you for information or assistance.

12) Hate to make cold Calls. Dont worry about cold call make them warm call by
calling only those people who have been referred to you by your initial contacts. When you say,
Hi, Arina, my name is Mouri. Asad suggested me to call you, you instantly rapport with your
contacts. To feel better you may send a letter or email beforehand or ask your contact to call
their contact to pre-introduce you.

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OVERCOMING THE BARRIERS TO NETWORKING

Even though the benefits of networking for our career are understood, many individuals still find
the idea of networking uncomfortable or intimidating. The notion of networking for some can be
so daunting they refrain from networking altogether. Others will think nothing of approaching a
stranger at an event, introducing themselves and starting a conversation. It is true like any skill
that some people have more natural ability for networking than others. It is possible however to
overcome your barriers to networking. With some knowledge and practice we can improve our
networking ability and level of comfort.

Introverted individuals and those with low self-esteem are much less likely to engage in
networking. Compared to the extroverted, introverted individuals are not as comfortable meeting
new people, engaging in professional networking or increasing their visibility. Those with low
self-esteem lack confidence in their personal skills and abilities and are held back by the belief
they will be unable to adequately reciprocate any assistance they are provided from their
network. It is possible however to overcome these barriers to networking, become more
comfortable and develop effective networking behaviours.

Here are some tips to overcome your barriers to networking:

1. Prepare what youre going to say

Feeling adequately prepared can reduce anxiety levels. Before a potential networking
opportunity develop a basic script that you can use to ease yourself into conversations with
strangers. It is a good idea to also have an elevator pitch prepared and to practice your scripts
with a friend before you attend.

2. Learn to Engage in Small Talk

The challenge for introverts when networking is that they find spending a lot of time interacting
with many others draining. It is not that they dont appreciate being around other people, they are
just not energised by the interaction the same way an extrovert is. An introvert will prefer to

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have meaningful, deep conversations and find the necessary small talk of networking events
tedious.

Some tips for introverts when small talk is required:

Ask open-ended questions that spark meaningful exchanges rather than one word answers.

Dont succumb to lazy small talk, dont rely on clichs and fillers.

Ask follow up questions. Be aware of opportunities to go deeper with a conversation by asking


more questions rather than nodding and saying nothing.

Dont put too much pressure on yourself to come across clever and eloquent. Instead keep your
exchanges, direct, natural and simple. Trying too hard to impress will result in you coming across
pretentious and fake.

Watch your body language. If you are feeling uncomfortable, irritated or bored by small talk
your body language can easily give you away. Fake it, always keep eye contact and smile.

Have plans to give yourself some time along after a networking event to recharge.

3. Recognise the ways you can offer assistance and reciprocate

There are an abundance of ways you can help the individuals in your network. Consider your
strengths and acknowledge what you have to offer.

Here are some ideas to get you thinking:

Offer encouragement and support

Share knowledge

Provide an introduction to others in your network

Email an article they may be interested in

Offer to help their subordinates

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Send a thankyou note

Check in every so often to see how they are doing

If you feel asking for assistance from your network is imposing, then think about a time when
someone asked you for help. It is very likely that you were flattered to be asked and happy to
oblige. Remember that the person you need to call upon for help today was probably in the same
position not too long ago and will be more than happy to help.

4. Overcome self-limiting beliefs

Do you really lack networking skills or have you just conditioned yourself to belief you dont
have the skills? Sometimes we believe we lack a skill or dislike an activity and so avoid it but in
fact our assumption is wrong. A strongly held false belief will undermine your confidence and
influence your reaction to the situation so that ultimately the result is the fulfilment of what
started as a false prophecy.

Obviously there are things that we do not excel at or enjoy doing but some beliefs about our
skills are incorrect and need challenging. Take a look at the feelings you have regarding
networking. Do you feel that you dont have sufficient contacts to network? Do you feel you are
not good at networking? Do you feel you cant reciprocate assistance provide by your network?
Do you feel you are too shy? Do you feel you dont have time?

Challenge yourself to find evidence to support your beliefs. Look for evidence that the
statements are incorrect. Find examples of where you have successfully networked. You may
discover my examining and challenging the beliefs you have about networking that in fact you
do have the skills to network.

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COMMUNICATION NETWORK IN BUSINESS ORGANIZATION

A communication network refers to how information flows within the organization. Information
within an organization generally flows through a system, rather than being a free flow. In the
words of Adler, Communication networks are regular patterns of person-to-person relationships
through which information flows in an organization.

This means that the flow of information is managed, regulated. and structured.

Communication networks may be formal or informal. We will deal with each of these in some
detail.

Formal Communication Network A formal communication network is one which is


created by management and described with the help of an organizational chart. An organizational
chart specifies the hierarchy and the reporting system in the organization. Therefore, in a formal
network, information is passed on only through official channels such as memos, bulletins and
intranet (email within the organization).

The organizational chart implies that information can flow in any of three directions vertically,
i.e., upward or downward, and horizontally.

1. Upward Communication This may be defined as information that flows from


subordinates to superiors. Some of the reasons for upward communication include discussing
work related problems, giving suggestions for improvement and sharing feelings about the job
and co-workers.

This type of communication has both benefits and disadvantages. One of the biggest benefits is
problem-solving. Once a subordinate has brought a problem to his superiors notice, chances are
that the problem will not recur, since the subordinate learns from his superior how to tackle it the
next time. Thus, his ability to solve new problems and therefore his managerial ability, improves.
Another benefit that could arise from upward communication is that valuable ideas and
suggestions may sometimes come from lower level employees. Therefore organizations should
encourage this kind of communication.

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A third benefit is that employees learn to accept the decisions of management and thereby work
as a team.

The biggest problem associated with this type of communication is that it may lead to handing
down of decisions by superiors. When subordinates frequently seek the superiors guidance, the
latter may adopt an authoritarian approach and merely give instructions, disregarding the
subordinates opinion completely.

2. Downward Communication This may be defined as information that flows from


superiors to subordinates. The most common reasons for downward communication are for
giving job instructions, explaining company rules, policies and procedures and giving feedback
regarding job performance. A number of studies have indicated that regular downward
communication in the form of feedback given to employees is the most important factor affecting
job satisfaction. Therefore organizations today are trying to encourage more of this type of
communication.

There are both benefits and disadvantages associated with this type of communication.
Downward communication that provides regular feedback will be beneficial if the feedback or
review of performance is constructive. A constructive review is one where a manager counsels
an employee, or advises him on how to improve his performance. On the other hand, a
destructive review can destroy employee morale and confidence. Regular downward
communication also creates a climate of transparency or openness, where information is passed
on through official channels, rather than through rumors.

Thirdly, downward communication boosts employee morale, since it indicates that management
is involved in their progress.

The problems with this type of communication are the danger of doing destructive reviews, as
mentioned, and that of message overload. This means that superiors many sometimes burden
their subordinates with too many instructions, leading to confusion.

3. Horizontal Communication This type of communication is also known as lateral


communication. It may be defined as communication that takes place between co-workers in the
same department, or in different departments, with different areas of responsibility. For example,

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Sales Managers and Advertising Managers in the Marketing department, or Marketing Managers
and Finance Managers.

The reasons for this type of communication are for coordination of tasks, sharing of information
regarding goals of the organization, resolving interpersonal or work related problems and
building rapport.

The biggest potential benefit of horizontal communication is the sense of teamwork that is
created. Regular communication of this type ensures that all co-workers work together towards
achieving a common goal in the overall interest of the organization. The biggest potential
problem is that conflicts such as ego clashes are bound to arise, when co-workers at the same
level communicate on a regular basis.

In spite of these problems, horizontal or lateral communication has become more important in
todays business scenario than upward or downward communication. This is because the
organizational pyramid indicating the different hierarchies or levels in an organization has
flattened. This is illustrated by the diagrams given below.

Informal Communication Network Another name for informal networks is the


grapevine. In this type of network, information does not flow in a particular direction, as we
have seen with formal networks. The information is also not passed on through official channels
such as memos, notices or bulletin boards. The information need not be circulated within the
organization, but could be passed on outside the work environment, wherever co-workers or
colleagues meet socially. Thus, informal networks are based more on friendship, shared personal
or career interests.

Example Co-workers may meet outside the work environment at a company picnic, party or
a car pool and discuss areas of common interest that may or may not be work related.
Information may then be passed on to each other about happenings in the company, such as
layoffs, the companys plans for acquisitions and so on.

This type of informal network is not just for idle rumors and may be useful in many ways. First
of all, it sometimes fills in the transparency gaps left by formal networks. Such gaps usually
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occur during times of crisis such as strikes or layoffs. The strikes and layoffs may not be
officially announced. Secondly, it may help to confirm important information, such as the fact
that the company is going in for a major acquisition. Thirdly, the grapevine can be used for a
constructive purpose by the organization.

Example The government could get the press to publish news in the local paper that there is
going to be a petrol price hike soon, just to test the reactions of the general public. If the reaction
is negative, then the news may be withdrawn on the basis that it is just a rumor. Similarly,
organizations could deliberately plant proposals in the minds of their employees, just to test their
reactions.

Given that informal communication networks have their advantages, they should not be
suppressed as rumors. On the contrary, competent managers should accept the informal network.
At the same time, they should make efforts to counter false rumors and to ensure transparency
through the formal network. This means making all types of information - both positive and
negative, available to everyone in the organization through official channels.

To conclude, it should be remembered that both formal and informal networks should be
cultivated and allowed to co-exist, so that information of all types flows freely to all levels in the
organization.

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BASIC BUSINESS NETWORKING TIPS

Salespeople can and do succeed without ever building a business network, but these salespeople
are probably working ten times harder to generate sales than their colleagues who do practice
good networking. A solid network will bring you leads... help you set up meetings with otherwise
unreachable people... and even give you a few shoulders to cry on when things aren't going well.

Networking is, at its core, relationship-building.

You are making a mutually beneficial connection with someone, for business reasons. Sounds a
lot like selling, doesn't it? A lot of the skills you need to build and maintain a network are the
same skills you already use to sell your product or service. So in addition to networking's other
benefits, it's a great opportunity to polish your sales skills.

Meet the Right People

The first step is getting in touch with the right people. Your nearest chamber of commerce is a
great place to start these organizations are designed to promote networking between local
businesses. There are also a number of sales organizations that will help you connect with other
sales professionals. Such professionals can help out not only with leads, but with job
opportunities and sales training as well.

Industry conventions are a perfect place to meet and greet potential contacts. Every attendee who
isn't a salesperson from a rival company is a potential customer.

Even the other salespeople can be helpful contacts, as many will be from companies whose
products complement yours, rather than directly competing with you.

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Social Networks

The Internet offers tremendous opportunities to set up networks. LinkedIn is a business-centric


networking site that's designed to make it easy for you to get in touch with potential resources.

It also hosts training materials and mentoring groups. Other well-known social networking sites,
like Facebook and Twitter, are also ideal places to look for new connections.

Volunteering is a wonderful way to meet people and also do some good. You can volunteer for
non-profit organizations, churches, mentoring programs, community outreach programs,
industry-related groups, and dozens of other local and national organizations. Volunteer positions
usually require a significant time commitment, but they will also allow you to meet people you
might otherwise not be able to reach and provide an easy way to build rapport with those people.

Whatever means you use to expand your network, you'll need to keep everyone's information
organized. It does you no good to make five contacts in the insurance industry if you can't
remember their names or phone numbers! A business card scanner can help; you can scan a new
contact's card and keep the information in digital format. Many scanners can automatically
export their data into the CRM of your choice. But if you don't want to invest in specialized
hardware, a basic spreadsheet or even that old standby, the Rolodex can work just fine. The
trick is to pick a system that suits you and update it regularly as you collect contact information.

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Practice Patience

It's tempting to try to sell your products to your networking contacts, especially when you're
falling short of your goal for the month, but resist the urge. Making a sales pitch to a contact
changes your status from 'business connection' to 'annoying salesperson.' It's fine to let your
networkees know what you do and perhaps tell them a bit about your products and services, but
always err on the side of caution.

Once you've built a basis for your network, you can't just stop and rest on your laurels. Your
contacts require the same kind of attention and give-and-take that you would provide in any
relationship.

If you only call your contacts when you need a favor, you'll soon find yourself relegated to voice
mail with no hope of a call back.

On the other hand, people like to do favors for other people, as long as they don't feel that you're
taking advantage of them. If you observe the basic social courtesies call or email regularly just
to catch up, help your contacts out when they need it, and thank them promptly when they help
you you'll find that most of your contacts will be eager to help you.

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REFERENCES

https://www.forbes.com/sites/larryhawes/2012/03/06/types-of-business-
networks/#36226d76ebb0

https://en.wikipedia.org/wiki/Business_networking

http://www.bpnetwork.ca/business-networking-barriers/

http://www.mmcareerservices.com/#/career-blog/4568097217/What-Is-Holding-You-
Back-from-Professional-Networking-How-to-Overcome-Your-Barriers-to-
Networking/7159202

http://www.businessballs.com/business-networking.htm

Momaya, K. (1999). Role of Communication Networks in Network


Organizations:. Journal of Scientific & Industrial Research, pp 261-266.

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