“ARE you on Facebook?” Not long ago this phrase would have been confined to a student bar. Now you might hear it anywhere, including the office. In the past few years social networking has become commonplace and is rapidly infiltrating professional life. So do social networks offer any benefits to small businesses and is it worth investing time in them?

Andy Lapota, a networking consultant and director of the online network Word of Mouse , believes social networking is here to stay. He said that the Blackberry and fast, round-the-clock access to the internet had paved the way for online social networking.

“The internet is suddenly much more accessible,” he said. “Without the long download times that frustrated us when we were using telephone modems, we can do so much more online.”

Lapota also believes that the online networking revolution is largely being driven by demographics.

“Many of us have had to learn about the internet, e-mail and other new technology as adults. But now an increasing number of people are entering the job market and business community for whom texting, instant messaging and blogging are a way of life,” he said.

All of this means that small-business managers should not ignore these phenomena but use them to their advantage.

For the business manager thinking about trying them out for the first time, things are not nearly as daunting as they seem.

For a start, “social networking” is an umbrella term. It encompasses the well-known networks such as Bebo , MySpace and Facebook - set up as social tools for students - but it also includes a raft of online networks designed specifically for businesses. The latter are not purely social sites; rather they are online business networks that can provide a host of contacts and potential business opportunities.

Business networking sites normally fall into one of three categories. The first is profile-building networks, such as Ecademy or BT Tradespace . Essentially, these sites let users build up their business profiles by posting details of their activities, writing blogs, joining clubs and exchanging messages with other users.

The second type of site is the brain-building network, such as Web Wednesdays , focusing on an exchange of information and business support. These sites aim to bring together professionals – often from one area of business – to exchange ideas and solve problems.

The third type of site is the referral-building network, such as Linkedin and BT Tradespace, which focus on business building. They aim to connect members so they can get to know each other’s skills and previous experiences, which leads to recommendations, referrals and word-of-mouth marketing.

Penny Power is the founder of Ecademy , an online business network. “Joining Ecademy is essentially about being among a group of like-minded people - some of whom are further along the line than you in terms of experience and some of whom are behind,” she said. “It’s about giving as well as taking. You mentor others as well as ask for advice.”

Power also believes that social networks can provide vital emotional support.

“In the corporate world you have other people to bounce ideas off and encourage you. If you are on your own, getting started can be very lonely. Ecademy provides a place to share your worries with others. I often hear of members talking through business problems with other members. They would rather do this than burden their families with it,” she said.

Fay Olinsky founded her business, Personal Chef, in 1994 and has since built from scratch a clientele for her private catering services. Social networking has played an important role in the process.

“When I launched the company I had to get Personal Chef established as a household name, but I didn’t have a big budget for advertising,” she said. “Networking with Ecademy was a godsend. I was able to blog daily about what I did and discuss my business online with the people I was getting to know. I have never needed to pay for advertising and my business has grown steadily.”

Olinsky is logged on to Ecademy for most of the day, but estimates that she spends about two hours updating and reading items. She particularly focuses on writing her blog; her topical comments have resulted in her being interviewed on television and radio.

“I tend to be a little robust and controversial and have views you either love or hate. I attract a lot of comments on my articles,” she said. “This is all good publicity because it makes Personal Chef prominent.”

Along with advertising, Olinsky has discovered many other benefits that being a part of an online community brings – some more unusual than others.

“I can’t be grateful enough for all the free technical advice I have been given,” she said. “Things like having forms designed specifically for my business built for free. I’ve even had advice on how to change a light bulb in a BMW. I put a note up in the online forum and about five minutes later someone had told me how to do it.”

Lapota believes that online social-networking sites, when used wisely, can prove to be beneficial to the small-business manager.

“Whereas people traditionally used cold calling or advertising to market their business, over the past 10 years there has been a big rise in referrals,” he said. “This is where social networking can be extremely helpful.”

Social networks provide an opportunity for members to build a profile for themselves and in doing so establish their name and market their business. They then have access to thousands of contacts with whom they can network. Members can read other people’s profiles in order to build relationships, ask for advice or share expertise. As trust builds, referrals become a possibility.

However alluring this may sound, Lapota warns that social networking is not a substitute for going out and meeting people in person.

“The big mistake for any business owner to avoid is turning your back on traditional face-to-face networks in favour of online social networks,” he said. “It may be easier spending a few minutes online each day than taking the time to meet people, but business and referrals will always be built on trust and understanding. That takes getting to know each other – you have to see the whites of people’s eyes.”

Lapota believes that Facebook should be used differently from the online networks designed for businesses. He sees Facebook primarily as an opportunity to let friends and family know what you do – if business does end up coming out of it, then this should be seen as a bonus, not the original intention.

“Where Facebook excels is in breaking down the barrier to getting friends and family to support you in business,” he said. “It’s a business opportunity in a different form as this can be the group that is going to help you the most and support you the most.”

Social networks can facilitate, manage and nurture relationships, but used alone they will never be enough to sustain your business contacts.

With the networking revolution set to gather momentum, joining one of these sites is not going to be a waste of time – rather, by putting in time and effort, the small-business manager is likely to see a wealth of opportunities as a reward.

MAKING THE MOST OF A NETWORK

Don’t be overwhelmed by the number of sites available. Spend time investigating which would be the best for you.

Select the network you want to join and then focus on it. Do not join too many and then leave your site abandoned.

Put aside time every day to spend on the site. To be successful at networking, you need to take the initiative.

Connect with others and ask them what they do. Never try to sell yourself to them without establishing a relationship first.

Be patient: building trust takes time – do not expect immediate results.

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