The one thing I recommend to people who want to understand social media and use it for their business, is that they MUST read.
Find blogs, technology information, articles and people in your industry and read what people are doing and saying online.
This will give you inspiration and can teach you how to use social media for yourself.
Follow your instincts. Remember you will be writing about, talking about, writing blog posts and updates about your own business - so read up and then decide upon the best social media practices for your self.
Here are a few articles which have caught my eye and should be of help to you:
Brief thoughts about social media for business -
http://www.socialmediadelivered.com/2010/05/11/brief-thoughts-about-social-media-for-small-businesses/
7 effective marketing tips for Twitter - http://www.twitip.com/7-tips-for-effective-marketing-with-twitter/
What is social media and how to use it for your business - http://ezinearticles.com/?What-Is-Social-Media-and-How-to-Use-It-for-Your-Online-Business?&id=5597819
Social media isn't (just) a popularity contest - http://socialmediatoday.com/thepaulsutton/249962/social-media-isnt-just-popularity-contest?utm_source=feedburner&utm_medium=feed&utm_campaign=Social+Media+Today+(all+posts)
Common keywords are community, learn, monitor, build online and engage.
Find people in business who have common interests. Build your business and brand by really engaging with others.
And read as much as you can about online marketing, online marketing tools and the latest technology because I agree it's not just having random conversations with random people online, social media can show revenue, growth and community.
