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Forming Strategic Alliances
Referral Systems on Steroids... Crack These Strategies & Hold On!
It's Just Like Choosing a Bride Really.
Forming strategic alliances, or joint ventures, with like-minded companies is a wonderful way to grow particularly when
starting a small business.
If planned well and executed correctly, they serve to improve your credibility, increase your customer base and grow your profits. All businesses, especially start-up businesses, will benefit from strategic alliances. Joint venture partners can share knowledge, technology, resources and experience and a 'united front' approach.
Be Clear on What You Want.
Set detailed goals before entering into a strategic alliance.
"Be crystal clear about what you want to accomplish from the alliance"You might want to increase your sales, lower your product or service costs, increase your market presence, increase your customer base or enhance your credibility. "Be selfish" Being fully aware of precisely what you intend to achieve from the joint venture will assist you in determining whether a particular business will be a good fit for your plans.
Check for Warts... Choose Your Partners Carefully.
Your alliance partner should complement your business for maximum effectiveness, seek partners who share your interest & passion in forming strategic alliances.Hook up with a business that shares similar goals to your own, conducts business in a similar manner to you, shares a common customer base but… “IS NOT A COMPETITOR” All businesses involved must have the potential to benefit from the alliance, this will increase commitment to the partnership. Vet your strategic alliance partners and narrow them to those that are key players in your industry, this will dramatically increase your chances of success.
Planning, Planning, Planning...
As in all
small business marketing,
sharp planning is required when forming strategic alliances.Discuss the details with your partners and make sure that everyone clearly understands the game plan and is in agreement with it. "Successful negotiation is a key element in a strategic alliance, everyone involved must feel they are going to benefit from it" Do not rush in to a strategic alliance, all involved need to take the time to understand each step of the process and what they can expect from the partnership. Make sure you have a clear understanding of the legal aspects of the partnership. Strategic alliance contracts can be quite complicated and can be difficult to edit once they are signed.
Communication, That's The Name of The Game
Clear, concise communication is a critical aspect of forming strategic alliances.Strategic alliances simply will not work unless all parties share trust and mutual respect. All involved need a clear understanding of their individual responsibilities. It's all about
relationship marketing
really. Your strategic alliance can be the most important business relationship you ever have... invest enough time and effort to ensure it runs smoothly & problem free.
Don't Leave All Your Eggs in The Same Basket.
I think that's how it goes.Anyway, as good as a successful strategic alliance can be, it should never your only strategy for growing your business. It needs to be one ingredient of your overall marketing plan. Consider the negative as well as the positive consequences of any strategic alliance. There may very well be tangible benefits from joining forces with a complementary business, but you must look at this venture from all angles.
It’s Nice To Be Married to an Oil Painting But…
Step back and have a look at your strengths and weaknesses, as well as your potential partner's. A joint venture may well bring additional profits and increased marketing presence, but if it also brings stress and angst, it just aint worth it man. So… if you’re thinking about forming strategic alliances, don't forget to check for warts.
Modern Net-Wit:
"People are so rude to smokers... you'd think they'd try to be nicer to people who are dying!" .........................................................................Roseanne Barr
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