Check out this article for information on strategic alliances and how they can hoist up your brand.
A partnership might be just the ticket when looking to grow your small business brand. But like anything else, choosing a partner takes time, research, and the right fit. Read on to find out:
Strategic partnerships are intentional collaborations between two businesses designed to improve both parties' success. Partnerships are meant to broaden the audience of both companies to appeal to more consumers and draw them to your business.
While there are several types of strategic partnerships, here are a few that could be most helpful for your small business:
When entering a marketing partnership, many benefits can come from it. Marketing is a cost-effective way to promote business growth and enter new markets. When partnering with another business has the potential to benefit both parties.
For example, let’s say you own a local interior design business. Down the road, there is a mom-and-pop paint shop. Since your enterprise operates in a similar space, marketing each other’s products could benefit both businesses.
When creating a plan for this joint venture, there are two strategies to consider:
In-store marketing is as simple as creating a sign, poster, or keeping a company business card in your store. So, when a client walks into the paint shop down the road, they might see your interior design business card and consider redesigning one of their rooms. The paint shop owner refers them to you; boom, you have a new customer.
Social media marketing is another cost-effective way to grow your customer base. Recently, Instagram has made partnering with other businesses even simpler. Instagram Collab allows users to create posts together. This means the post will show up on the feed of both parties, and you will share all of the impressions.
This strategy can increase the probability of both partners’ businesses being seen. It will also show viewers that your companies are collaborating and motivate them to become a client of your partner’s business and vice versa.
A supply partnership is an agreement between parties to supply and sell goods and services to your business. This strategic alliance strategy often adopts an exclusive nature; however, if your company sells multiple products or requires shelf space, it may not.
Let’s stick with the interior design business example. If you enter a supply partnership with the paint shop, you only offer their product in your store. So, when a couple comes in to have you design their nursery, you will show them the paint colors supplied by your partner.
The benefits of a supply partnership will vary based on your business agreement. Generally, a supply partnership will benefit your partner because they are making a profit off of you purchasing their supply.
In return, your supply partner will likely sell you a product you already require for your business, but at a fraction of the price.
A financial partnership is a business relationship created between you and some type of financial advisor. Financial partnerships are not the same as business partnerships; they are strictly focused on your small business's finances.
Entering into a financial partnership means working with an advisor, whether it is for taxes, investments, or any other big business decisions you’ll need to make.
Whether WiFi, cellular, or point of sale, technology is a part of your business. A technology partnership is similar to a financial partnership but applies to tech rather than money. A technology partnership is the agreement to use a certain technology provider company for anything you cannot do in-house.
For example, say your WiFi is giving you trouble. Instead of ditching it to hire a new company, you agree to stick with that same WiFi company that will come out and fixes it. Generally, the company will agree to some kind of discount in exchange for your loyalty.
Let’s discuss some cons you should consider before entering one.
Cons of strategic partnerships include:
While these might seem like small inconveniences, it is something to prepare for if you partner with a fellow business.
You must have a certain level of trust when considering bringing someone else on as a partner. Here are some key aspects to look for when considering taking on a strategic partner:
When going into business with someone, you must create a business model for your partnership. You’ll need to ask yourselves:
With any partnership, it’s important to understand what each partner wants in a business relationship. Laying out a plan and creating documents for legal purposes will promote accountability and understanding in your relationship.
This might seem like a no-brainer, but usually, it’s not the best idea to join forces with a direct competitor. While it might seem like it could boost both of your brands, it can often be a recipe for disaster.
When two owners of similar businesses get involved, even when intentions are pure, ego, pride, and protectiveness tend to get in the way. When looking for a strategic partner, look for someone who can complement rather than compete.
Different people have different communication styles, and many do not mix well. It’s important to know yourself and understand how you communicate, so you can check out whether or not you will be able to work well with your partner.
A partnership should hold a relatively equal sense of responsibility — but most importantly, each partner should expect and give a mutual amount of respect.
If you have someone in mind that you’d like to partner with, you likely respect them already. However, here are a few things to keep in mind when working on a respectful relationship:
Remember that you and your partner both want the best for your business. You should enter the partnership with an open mind, but you must find a healthy balance of standing firm on the things that matter to you the most.
There are many advantages to strategic partnerships. When done properly, they provide a huge advantage to hoist up your brand. Strategic partnerships supply the opportunity to:
These possibilities that come with taking on a strategic partnership could be the edge your small business needs to take the next step. The more people that know about your business, the greater your chance of gaining new customers.
Additonally, the small business community is tight-knit. You are all passionate about your respective businesses, so helping someone else grow is a wonderful way to pay it forward. A strategic partnership might be just the ticket if you want to promote business development, increase your customer base, and aid someone else in the process.
Sources:
Reach vs. Impressions: What's the Difference in Terms? | Sprout Social
How To Select The Best Financial Partner For Your Small Business ⎸ Forbes
The Four Communication Styles Every Manager Should Know ⎸ Asana
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