Hello, My Name Is _______________.

“One of the most important things that you can do during the next few days of this seminar is to network with as many like-minded people as possible, because those contacts will be invaluable to you and your future success.”

That’s a quote I have repeated countless times at my 2 or 3-day financial freedom seminars, but I have a deep, dark confession to make. One of my least favorite things to do in this entire universe is business networking. Rubbing shoulders, handing out business cards, talking to people that I have nothing in common with in the hopes that they may one day do business with me…I can’t imagine a more painful way to spend my time. I know of countless people that simply thrive in that environment, however I’m just not one of them.

That being said, I must also admit that some of my most profitable business relationships have come from networking events exactly like the ones I so fervently despise. Like it or not, social networking is one of the most effective and inexpensive ways to grow your business. Before a customer is a customer, they must first become a prospect, and before a prospect is a prospect, they must first be a contact. It is “Funnel Theory of Marketing 101”, and the most effective way to fill your funnel with as many contacts as possible is investing your time in what has become known as “Social Capital”.

Social capital, as defined by Wikipedia, is the value of network trusting relationships between individuals in an economy. The importance of building relationships with others in your marketplace simply can not be overstated, and it is essential to success in any area of life, business, or ministry.

One of my friends is an extremely successful business man, and his family is worth many millions of dollars. His father started his business career as a grocery store manager, and quickly ascended the ladder of achievement. He eventually started his own company, and now owns numerous businesses that operate in multiple countries throughout the world. I once implored my friend to share with me the secret to his father’s success. I expected some really in depth answer about cash flow analysis, managing inventories, mergers and acquisitions, or something even more over my head. Surprisingly, my friend summed up his dad’s uncanny success in one simple word, “relationships”. His father focused a great deal of his energy towards building strong interpersonal relationships with those around him, whether his employees, customers, or even his competitors. This investment into social capital has reaped great financial rewards for both him and his family.

In a world that is ruled by the clock, it’s easy to get caught up in all of the demands of the day. Family, work, school, kids, dinner, soccer practice, devotionals, exercise, and the list goes on and on. In the midst of this fast paced lifestyle, one of the first things to suffer is our personal relationships. After all, who has time for a deep, meaningful conversation any more? We are so busy racing from one appointment to the next that a simple “How are you?” has been replaced with a silent wave, for fear that someone might actually answer the question and make us late for the next event. However, if we want to be truly successful as entrepreneurs, it is imperative that we invest a portion of our time into this extremely neglected area of life. This commitment to growing our “social capital” through networking, meeting new people, and even attending community events will create contacts, prospects, and if all goes well, customers for life.