Social Networking Benefits for Small Businesses

Dan Martin, BusinessZone.co.uk editor, wrote a wonderful article on the small business benefits of social networking.

Social networking has evolved from the teen angst filled communities of MySpace and Friendster to business-friendly sites like Yelp! and LinkedIn. Online communities offer plenty of opportunities for business owners to reach out to potential customers and employees.

Here are my thoughts on the benefits Dan mentions, plus a few tips for getting started with social networking today.

1. Build trust -- Show your expertise to potential customers, employees and business partners. For example, if your small brick-and-mortar business sells auto parts, answering members' questions in a car enthusiasts forum will build your reputation, and likely lead to a few more sales.
   
   
2. Find employees or business partners -- On social networking sites aimed at professionals, like LinkedIn, members create online resumes, leave recommendations (references) for colleagues, and setup introductions for each other.
   
   
3. Turn negatives into positives -- These days, how you react to negative criticism is more important than what the criticism was about. Social networking sites like Yelp! allow small businesses to get feedback from customers and then receive public accolades for being a business that cares about and responds to its customers.

If you've never explored the world of social networking, check out these two websites that cater to business:

• LinkedIn -- for working professional networking. Useful for all professionals, including job seekers, employers, freelancers, and business owners.
  
  
• Yelp! -- for owners of local brick-and-mortar businesses. Yelp is the reigning champ of review sites. Members review all sorts of local business, from restaurants and nail salons to supermarkets and gyms. If you cater to the local market, first make sure your business is listed. Then, read and respond to your customers' reviews.