From the course: The Ultimate Guide to Professional Networking

Understanding the goal: Building relationship capital

From the course: The Ultimate Guide to Professional Networking

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Understanding the goal: Building relationship capital

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- Networking is about relationship capital. It's as valuable as money. Think of your growing network as a high-yield, no-risk investment account that accumulates compounding interest over time. But that's only part of it. Your network will allow you to save real money on advice and you'll also dodge potential mistakes. I want to make a couple of finer points about this so that you can absorb it and fully take advantage of it. First, know that the people you eventually have in your network are incredibly valuable, even more so than money. Your network can literally become the capital needed to launch a business of your own someday. Each person is someone you want to build into your bank of relationship capital. Second, understand that there's a small catch to this relationship capital. You can't draw from it until there's a large positive balance in your account. However, it's a small price to pay for relationship capital that you'll be using for decades to come. Finally, rest assured that the uses of your network range far and wide. You can call on these people for favors, advice, ask them to refer business, and more. You can also use them as an in at another company for a lateral move, as long as you do it ethically. The same goes with getting access to a base of customers for a new venture, if that's in your future. Build your relationship capital with intent and draw from it carefully.

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