Written by Victoria Oladipo
Before businesses became large, they were first small. Big Tech companies didn’t become big in a year. They were first startups before they became what they were.
Strategic partnerships are mutually beneficial for both your small business and the partner, especially when both businesses are not competing.
It is important to note that both businesses will only benefit from each other through this partnership.
Basically, the businesses involved have to share either customers or industry knowledge or marketing techniques so they could strengthen and foster this relationship.
Creating alliances or strategic partnerships can help small businesses compete with large businesses in the market. The saying that ‘two are better than one’ is not a lie after all. Where one business lacks, the other business makes up for.
Partnerships can help your small business develop new products or a new service. It can give you the right exposure needed for your business growth.
One way that partnership is efficient is that it can help your business at any level of growth. It is, therefore, something you should look into for your business.
How do strategic partnerships work?
1. Make sure all the systems of your business are in order and you have clarity on how to work it out.
2. Be knowledgeable about what you want to gain from the partnership. Don’t go into the partnership without knowing what you want to gain.
3. Identify the best strategic partners. Sort and filter businesses that would be beneficial to your business and are in line with your goals.
4. It is also important to do research on the business you eventually choose. Check out their reviews, their social media, websites and every other due diligence you need to do.
5. Build a relationship with potential partners. Relationships are the backbones of beneficial partnerships. You can learn as much as you can from the current situation of the business and the long-term goals.
6. Create a proposal that will state how this partnership will also be beneficial to the other party. Ensure the proposal is not solely about you and your business.
7. Negotiation, which will always occur in every partnership, will happen. Make sure you have a written agreement on how the partnership is going to work.
8. Put in time and energy after you have struck the deal.