Sales & Marketing Authority, Bestselling Author & Business Motivational Speaker

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