Importance of Networking in Business: How to Build Valuable Business Connections

Key Takeaways

• Networking is helpful at every stage of business development, from start-ups to growing businesses and even mature businesses.
• Building a professional network can start with the right education, a strong LinkedIn profile, or simply connecting with industry professionals after a guest lecture.
• Strong networks offer access to career opportunities, mentorship, and meaningful knowledge exchange.

Success in the modern business world can rarely be achieved in isolation. Behind every innovative idea, strategy, or successful startup is a web of meaningful connections. These include people who share knowledge, offer support, and open doors to new opportunities.

This is the essence of networking, which refers to the process of building and maintaining professional relationships that lead to collaboration and success. For businesses, such connections can offer access to new markets, investors, talent, and information that otherwise wouldn’t be available.

The importance of networking has never been greater. Having the right connections can determine whether you’re ahead of the path or lagging.

What Is the Importance of Networking in Business?

Nowadays, networking is recognized as a key success factor. It helps professionals grow their careers and empowers organizations to evolve and excel.

Strong networks create opportunities for relationships that lead to new business opportunities, fresh ideas, and partnerships. According to a study, 80% of professionals think of networking as crucial for their careers, while almost all of them believe that meeting people face-to-face builds stronger relationships.

Professionals who focus on mastering the art of networking often advance much quicker and discover opportunities that others may not have.

Types of networking in business

Networking in business can have various forms, with each having different purposes and providing unique advantages. Here are the most common types:

Formal networking

These are organized settings designed specifically for professional interactions.

• Industry events and conferences: Attending seminars, events, and conferences is a great way to meet others in your field, share ideas, and stay updated with industry trends. For example, hospitality students might attend hospitality conferences to connect with potential employers.
• Professional groups and business clubs: Local entrepreneurs or international networking groups like BNI (Business Network International) provide regular meetups to share recommendations and relevant information.
• Career fairs and recruitment events: These events connect job seekers with hiring companies. Many universities, including César Ritz Colleges Switzerland (CRCS), host job fairs, such as the International Recruitment Forum (IRF), where students can meet top recruiters from different industries.

Informal networking 

This type of networking happens more naturally and often feels more personal. 

• Online and social media platforms: LinkedIn is a great example of digital networking. Such platforms enable meaningful engagement between people, whether you’re following industry leaders, sharing articles, or messaging alumni.
• Alumni and peer networks: Being in touch with fellow alumni can often lead to job opportunities or collaborations. Many career paths launch through casual connections between former classmates.
• Daily interactions: In some cases, a networking opportunity may present itself in an unexpected setting, such as a café, while traveling, or even at the gym. A casual conversation on a flight can lead to a new business partnership.

Key Benefits of Networking in Business

Being part of networking activities provides numerous benefits that can significantly impact business success. Whether you’re just starting your own business or leading a company, the relationships you create can shape your process.

• Access to opportunities: Networking often leads to job opportunities, internships, business deals, or collaborations that aren’t found in public advertisements. Introducing yourself to professionals or having a small conversation can open up new and exciting opportunities.
• Mentorship and guidance: Connecting with experts can offer encouragement and perspective. Mentors can help you navigate your career path, avoid common pitfalls, and make informed decisions.
• Referrals and partnerships: Trust is the cornerstone of any business relationship. A recommendation from someone in your network can lead to referrals, strategic partnerships, or client relationships built on trust.
• Knowledge sharing and innovation: Engaging with others in your field encourages sharing ideas and best practices. These interactions can bring innovation, solve problems, and help you stay updated with the changing business landscape.
• Increased visibility and credibility: Actively participating in professional communities or industry events can boost your reputation. The more visible and engaged you are, the more likely you are to be seen as an expert in your field.

How Networking Supports Different Business Stages

Networking plays an important role throughout a business’s life cycle. From launching a start-up to expanding a mature company, strong connections help businesses overcome challenges and remain competitive.

For start-ups

During this stage, a start-up is still in its beginning phase where ideas are born, problems are identified, and concepts start to take shape. Entrepreneurs aim to research market needs, define value propositions, and draft a basic business plan.

At this phase, connecting with mentors, industry professionals, and fellow entrepreneurs can validate the idea and ensure it’s solving a real problem. This conversational feedback uncovers blind spots, provides fresh perspectives, and even inspires a pivot in the right direction.

A study done at Queen Mary University of London over the course of 25 years, which analyzed 41,830 companies across 117 countries, found that the quality of a startup’s network influences its success, even more than initial funding or team size.

Through networking, start-ups at this stage can get insightful feedback, potential co-founders, technical collaboration, and access to supportive communities like university innovation hubs. Building relationships early can bring emotional encouragement and momentum for future growth.

For growing businesses

The growth stage marks a significant milestone for a start-up, as the business moves beyond survival and begins to advance. By this point, the product or service has achieved market fit, revenue is rising, and the focus shifts to entering new markets and hiring new talent. Businesses often seek larger investment opportunities to support expansion and sustain long-term growth.

Networking becomes increasingly important in this process. As operations continue to become more complex, founders need access to experienced mentors, industry experts, and specialists who can navigate these challenges. Strong relationships with venture capitalists, strategic partners, and professional executives can open doors to funding and create development opportunities.

A 2024 study that examined 383 entrepreneurs in Nigeria found that both traditional and digital networking influenced business growth. Traditional networks improve community engagement, while digital networks expand market reach.

For mature businesses

A mature business reaches stability when operations run smoothly, the brand is recognized, and revenue is steady. The focus then shifts to strengthening performance, protecting market share, and finding new ways to innovate. Some companies also explore global expansion or prepare for an exit through mergers or acquisitions.

Networking remains just as vital in maturity as it is in earlier stages, but the purpose may evolve. Instead of looking for growth, networking helps businesses build a legacy or improve strategies. Networking with like-minded people helps businesses stay up-to-date, informed, and quick in the changing marketplace.

Mature businesses benefit from high-quality recruitment events like the IRF, where they connect with multilingual and culturally diverse students. Das Achental, for example, has recruited over 300 interns from the IRF across two decades. Nikolai Bloyd, Managing Director of this company, says:

The IRF opens opportunities not just for internships, but for career progression. That’s why we keep coming back.

How to Start Networking

Networking begins the moment you decide to take your career seriously. For students and younger professionals, the most effective way to grow a professional network is through the tools, environments, and opportunities available.

1. Start with the right education

The foundation of strong networking starts in the classroom. Students enrolled in the Bachelor of Science in Hospitality Business Management are consistently exposed to industry professionals through academic projects, expert-led workshops, and real-world internships.

Studying in an international environment gives you opportunities every day to connect with peers from all over the world. In addition to classroom exposure, students benefit from career services that help them connect with employers.

2. Join organizations or attend workshops

Professional clubs, student organizations, and industry events offer spaces where networking can naturally happen. At CRCS, students benefit from the best example of networking, the International Recruitment Forum (IRF).

Many students find internships or full-time positions by meeting professionals. Dasha, a student at CRCS, shared her IRF networking opportunity by saying,

The most valuable aspect of the IRF experience for me is the networking opportunities it provides. My first internship was at Amangiri in the desert of Utah, and for my next step, I will embark on an internship at the Bürgenstock Hotels and Resort in Switzerland.

3. Build your online presence

Your digital profile is important for your career. A well-organized LinkedIn profile that highlights your training, passions, and professional objectives makes it simple for experts and recruiters to locate you. Students at CRCS are always encouraged to connect with alumni and industry guests after events to grow their network beyond campus.

4. Use every opportunity around you

Internships, group projects, guest speakers, and even casual chats in the hallways all have networking potential. Students in the Master of Science in Leadership program are encouraged to treat every interaction as a way of building their professional future. Whether it’s with a visiting executive during a leadership summit or a peer in a team project, every opportunity can shape their future careers.

The Lasting Impact of Business Networking

Networking is a lifelong process and investment in your career. From the moment you begin your career to the peak of your professional journey, your networking can shape your path.

It helps you grow personally, expands your business, and turns connections into opportunities you might not have otherwise had. Whether you’re launching a new business or managing a multinational company, networking helps keep your vision and strategies alive.

Take the first step toward your future by studying at CRCS. With networking woven into every aspect of the experience, you'll gain hands-on learning, connect at global events, and build relationships through industry partnerships. CRCS empowers students to lead with confidence and shape the future of their careers.

Explore our programs today to actively build the relationships that will define your future career.

Frequently Asked Questions

How does professional networking help with career growth?

Professional networking opens doors to jobs, mentorships, and opportunities that aren’t publicly available.

What are some tips for networking effectively?

Some networking tips include being genuine, listening actively, following up, and giving as much as receiving.

How can you become good at networking?

Becoming good at networking means practicing consistently, attending events, improving your communication skills, and learning from each interaction.