Purpose of Business Network or Networking

Once a company has assessed its core capabilities it can either flush its assets away or, can find itself in a situation where it cannot compete on attributes, as it doesn't have the necessary resources. Because of this, networks are formed to utilize the advantageous attributes, and the importance here is dependent upon a mutually beneficial relationship that significantly adds to the value of a firm's market offering. With this, there comes a critical responsibility to thoroughly analyze the respective competitors, as there are both significant opportunities and risks associated with network partnerships.

Another purpose for a business network is to expand ones knowledge base without extending ones hours for learning and accomplishing new tasks. By utilizing the experiences and knowledge of others within your business network you are able to work more efficiently in the areas of your own expertise. For example, having people with computer related skills, phone skills, psychology background, health background, financial background, legal background, and business can help bring information from each area to the table that each person can share and use to the benefit of their own business.

Sharing information and being involved in a group can help your business reach levels you couldn't alone.

There are many online networking services that can benefit most businesses, one popular site is Connect Buzz. Yet, there have been an increase in such networking sites that was kicked off by the very popular Linkedin brand and now very clever business networking sites have come into play that not just take into consideration online business networking, which as noted by critics of business networking sites, does not work very well, and combined it with a complicated algorithm that places members of a business network into offline (in real life) networking meetings. One of the pioneers in such a hybrid business networking model is Business Networking Me.