The definition of a connection is a relationship in which an individual, thing, or idea is linked or associated with something else. A connection is a relationship that occurs as a result of networking, and its primary goal.
The definition of networking, however, is interacting with different people to exchange information & ideas among people with a common profession or special interest. Networking is an activity that can be acted upon with great or little success.
Here are the reasons why building connections is important:
1. It can lead to new business
Suppose you are a CEO who also acts as a rainmaker to your firm, or wants to impact the in making new connections which can lead to new prospects and new clients. Many people want to do business with the CEO, president, or owner of the company because it brings a sense of being an insider or VIP to being a customer of your firm.
2. It can result in new referrals
Connections watch out for one another and make introductions to each other because they believe in each other and like to help one another.
3. New connections open new doors for you
They also give you benefits you might otherwise not have access to. Imagine being connected with the owner of the top new restaurant in town with a several-month waitlist, and you want to celebrate your son’s birthday there the following week? Calling the owner and getting a table is an example of a connection opening new doors.
4. New connections may advise you on best actions
They also might give you tips for running your company more effectively, managing your employees, or making financial decisions.
5. They might become strategic partners, investors, and acquisition or merger candidates
The majority of new partnerships, capital, and acquisition candidates come from connections and referrals. Having a broad network only improves your options and access.
6. They introduce you to new vendors, key advisors, and business specialists to help your company
Have you wondered whether you have outgrown your bank relations? Considering whether outsourcing your Human Resource may make sense for your company? Trusted connections can not only share their experience about what you have yet to do, but also introduce you to new connections to help you evaluate and execute.
It can also lead to long-lasting friendships and business alliances.