Forming Strategic partnerships with businesses provides mutual benefits and equips businesses to offer customers more value added options. Statistics have shown that businesses with strategic partnerships experience an average of eighteen percent more business. Overall, some of the fastest growing companies have multiple alliances and are stable earlier on as well as more successful long-term.
When working to build these business relationships, it is important to consider the types of businesses that would best compliment your business. Prior to seeking out partnerships, be sure you know the areas of your business that have the potential to provide the most revenue and customer growth for your business. Be sure that these alliances are symbiotic for both parties.
1. Select Partners that are a Good Fit
Prior to approaching a company, be sure the service or product that the other company provides will enhance your business and vice versa. Another important aspect in forming strategic partnerships is to be sure you collaborate with businesses that are in your league, so you can scale together. You’ll want to be mutually able to successfully meet demands. If you are working in a B2C environment your strategic partnerships should bring value to consumers and if you are working in a B2B industry your strategic partnerships should bring value to other businesses. If you are operating in a B2B environment you can look at some of the services your business uses. Would any of these services bring value to your clients? It is most important to look for quality of strategic partnership over quantity. If you are offering too many services you start to lose your credibility in your field. The most effective partnerships are ones that enable you to increase sales of your product or service.
2. Have Clearly Defined Terms
Be sure to have terms of the partnership clearly defined to ensure both parties are following through on what was agreed upon and legal protection is in place. This will be vital for a successful relationship. It is crucial to establish what you want in return from your relationship. Are you more concerned with establishing another source of income for your business or passing on value to your customers. Typically there is a negative correlation between the two. Usually you cannot have the best of both worlds. Clearly define whether you want to earn something from each transaction or pass on exclusive savings to your clients because of your strategic partnership.
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3. Set your Partners up for Success
Communication will be key. Be sure both of you are on the same page as far as being an extension of the business. If there is any necessary training to maintain accuracy and consistency in the delivery of information to customers or tools that are required, you must equip your partner with all the essentials to be able push your product or service. Co Branded marketing material is typically a very effective strategy.
4. Maintain Good Relationships
Once you form a partnership, place focus on building the relationship so each of you value and trust one another and work together towards success.
As you develop strategic partnerships, consider the various types of businesses that you could form an alliance with. Diversity in business not only offers the potential for a faster increase in revenue but also provides more options and conveniences to customers, enhancing loyalty from customers.
Bottom line, have a clear vision of what you are seeking and also consider the types of companies that will most enhance your business. A long lasting partnership will be a win-win for everyone so be sure you have something of value to offer the other business as well.