In the past we’ve discussed stragetic alliances and the benefits of partnering with another company or business in order to take advantage of each other’s skills and jumpstart your growth. If you’re still on the fence, especially in this troubled economy, I’d like to encourage you to consider a strategic alliance again. They’re beneficial not only financially but from the skillset level as well. Here are 5 more reasons to consider a strategic alliance:

• You’ll save money in your business because you won’t have to hire any (or as many) new employees to help with your new projects. Since you’ll be working with a partner you’ll have the advantage of working with his team of employees as well.
• You’ll have the opportunity to learn from your strategic alliance. Your partner and his team will have a very different set of skills than you and your own team. By working together you’ll have the chance to learn and absorb a part of the industry you may not be familiar with.
• By aligning yourself with a strategic partner you’ll have the opportunity to endorse each other in advertisements. This is incredibly effective if you each have a strong business presence to begin with as the endorsements will only strengthen your credibility.
• Your customers will be happier because you’ll have more people on your side to solve their problems at a faster rate. The entire customer service experience will improve.
• You’ll be able to offer your clients a wider variety of products and services, based on those offered by your new partner, without spending money on product development.

Do these reasons seem selfish? They’re not, really. Just remember that your business partner will be entering into a strategic alignment for the same reasons. Work together and you’ll be well on your way to success!

Sean

Sean McPheat

Marketing Consultant – Motivational Speaker – Sales Expert

Not long ago we discussed the importance of building a strategic alliance with another business. While building a strategic alliance is certainly effective, you can’t just pick a business at random and decide to work together. There has to be purpose – there has to be a need.

Here are a few things to consider as you begin to formulate plans for a strategic alliance. Following these tips will ensure you are able to develop a strong partnership.

Evaluate your Potential Partners Thoroughly

Don’t take for granted the fact that you know about a company or its owners, even if you’re friends or met because of an important referral. Do a bit of research and make sure that you agree with your potential partner’s marketing strategies and business ethics. Consider their decision making process, their current marketing strategies, and the way they manage their employees. Whatever they do with their own business will likely apply to your alliance.

What Goals Do You Have for the Alliance?

Make sure you establish a clear set of goals and objectives from day one. Each side of the alliance should reap equal benefit. You don’t want to find yourself six months into a project and realize you’re burnt out because you’re doing all of the work. Put your ideas and goals in writing with any other agreements you make.

Communication is Key

Communication skills are essential no matter what type of business situation you’re in. You need to be open and honest with your partner and should expect honesty in return. Make sure you’re constantly in touch, whether this means following up via email, telephone, or by scheduling regular meetings to review the project’s progress.

Resolve Conflicts Quickly

Determine, in advance, how you will handle conflict if it should arise. It’s completely normal to have a disagreement, but you have to have a system for resolution (aside from meeting for a back yard brawl). Will you have a neutral place to gather for a meeting? Will you have a third party arbitrator help resolve your conflicts?

Patience is a Virtue

It takes a considerable amount of time to find a partner for a strategic alliance. Once you’ve found the right one, it’ll take time to cultivate a trusting relationship and, finally, see results. Nothing happens overnight. Be patient and you’ll eventually begin to see the benefits.

It’s not easy to form a successful strategic alliance, but it can certainly be done. Remain committed to the task and you’ll reap the benefits.

Sean

Sean McPheat

As the old saying goes, two heads are better than one. If that’s the case, it only makes sense for businesses to consider forming strategic alliances in order to further enhance their marketing objectives.

What exactly is a strategic alliance? A strategic alliance simply gives businesses the opportunity to work with others without losing their individual identities. Business owners are able to work as a team with other businesses, each working towards ultimately increasing his profit margin.

Working as a team does not damage either business. In fact, most businesses that work together in alliance report an increase in business throughout the term of the partnership. Because the businesses forming an alliance are not necessarily competitors neither one takes away from the other. Instead, they serve to support each other by offering complimentary products or services.

One example of a strategic alliance is the formation of an insurance company that is directly related to a specific bank. While the bank and insurance company are technically two separate entities, they may or may not fall under the umbrella of one major corporation. The bank may provide special services to customers who place their insurance policies with the insurance company; while the insurance group may offer discounts or special rates to those who do business with the bank.

Strategic alliances need not be this complicated. Perhaps you and another business owner recognize a need for certain supplies but are not able to order the quantities needed to obtain a special wholesale or bulk price. Some business form alliance simply to make purchasing supplies or special products easier and more affordable.

It’s important to note that a strategic alliance is not a merger or acquisition. Neither company is purchasing any part of the other. In the event that money is involved, the two companies may agree to form a third separate company together in order to keep their special project interests separate from their day to day operations, but this has no impact on the original companies in question.

The formation of a strategic alliance can be incredibly beneficial on a number of different levels. Take a few minutes over the next couple of days to determine whether or not there are opportunities within your own business where forming a strategic alliance might provide for faster growth. Share your thoughts in the comments. I’d love to hear from you!

Thanks again,

Sean

Sean McPheat

Telephone 0800 849 6732