Small businesses are always encorouged to network. I strongly recomend it myself and our business has benefited from networking over the years. We have also been able to provide thousands of pounds of business to companies we network with as well.

However I have become increasingly skeptical of networking groups that have closed seat systems. The problem is that it doesnt encorouge competition and you never really know what your getting. Groups tend to do business with others around the table as it’s the easiest referal to make.

But are those people the right people to do business with? Are they really offering good advice that is right for your business? Are they really providing good value for money?

Recently we visited a prospect that was part of a networking group. They had used the companies taking the telecoms seat and the IT seat practically since joining. The problem was that the IT system was a disaster waiting to happen, the telecoms system was over specced and they were paying roughly double what they should have been paying for phone calls.

Networking can be a valuable tool for all businesses however in our view you must never compromise on what is right for your business.