Business owners often look on networking as purely a marketing activity. After all, getting out into the community or taking part in industry events helps build name recognition, and contacts that can lead to new business.

But there's another side of networking, too. It can be a way to locate resources to help your business grow. Go to a business meeting and mention you are looking for a web designer, and chances are someone will refer you to someone who designs websites. The same is true if you need a bookkeeper, computer repair person, insurance broker, or hair dresser.

Referrals that come from someone who has actually used the service they are recommending can save you time and effort finding what you need. But unfortunately, not all referrals are based on personal experience or have your best interests at heart. Sometimes people give referrals because they owe another company a favor, are friends with the owner of the company they are referring, will get a commission from the company they are referring, or because they hope the company they refer will do them a favor in return.

To help weed out the good referrals from the bad, ask the referrer if they have used the products or services they are recommending. If they say yes, ask them to tell you more. For example, "What specifically did Sally do to help your business grow?" "How long did it take John to build the website for you? And how quickly does he make a change when you need it?"

Research the business before you contact them. Look at their website. See if there are samples of their work posted or case studies to read. Does the company look professional? Is there a contact phone number and address listed for them? If they will have access to sensitive information or will have access to your business property, are they bonded and insured?

Once you do contact the company, ask enough questions to determine if the company has the knowledge and experience to do the work you need done. Ask for references and be sure to check them. If possible, test the supplier or service provider with a small order or small job first to be sure the work is satisfactory.

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