In this highly competitive field, networking can function as a powerful tool if done properly. Networking is the process of making contacts and exchanging information with other people. It will allow you to tap into a vast pool of new customers and leads, sales and marketing opportunities, and a circle of business friends who can offer you support.

Networking does not mean having "small talk" conversations once in a while. You are trying to build relationships by adding value and being helpful. You do this by systematically following through on a plan to consciously meet people and exchange information with them on a consistent basis. These people can be anyone from your industry--real estate agents, loan officers, title reps and so on--to local business people, members of professional and civic organizations, elected officials and former co-workers.

When you speak with someone in your network, remember to be professional and prepared. Know what their business needs and aspirations are, and pass along information that helps your partners achieve their goals. Networking builds on itself by constantly exposing you to new partners who will generate leads, advice, opportunity and support.