Business partnerships are not new. Businesses have been working together for many decades as long as the benefits are mutual. The reasons for the partnership may vary from one business to another but the goal is mostly to interact with a new customer base, increase sales and get better visibility. Whatever your type of business, it is important to consider the advantages of going into a partnership before committing to one.
How can partnerships help a business?
If you have been thinking of growing your business, bringing a partner on board may be the way to go. The partnership may be short or long-term depending on your business goals but should be mutually beneficial for it to be successful. Here are some ways strategic partnerships can help your business.
- Access to new target markets
When you join forces with another business, you immediately gain access to their customers increasing the reach for your products or services. If your products or services appeal to them, you might notice an increase in sales almost immediately.
Partnering with another business is an effective yet low-cost way of advertising to an audience you might have never been able to access. When more people see your product in places they visit often, they are likely to buy and recommend them to others with similar interests.
- Adds value to your customers
Partnering with like-minded businesses provides added value to your regular customers as they get access to what the new business has to offer. When customers feel like your company cares for them through the new product or service offering, they are bound to come back.
Furthermore, customers that find the product or service brought by the new business valuable can recommend it to others, increasing your sales. The key is to partner with brands that increase your value in the eyes of your long-time customers.
- Increases your brand awareness
The more people know about your business and what you offer, the better the chances of your success. Partnerships that make your target market curious about your business are the best. It leads to them trying out your product and if they like it, you have a lifetime customer and many more referrals.
Brand recognition is one of the best ways of becoming top of mind for your customers. When you pair up with a successful brand, it increases your visibility to new clients and similar businesses that may want to partner as well.
- Provides credibility
A good business partner can increase trust in your brand and products. When customers see your work with another business for their benefit and yours, they are likely to support you. Ensure that your partner is also considered to be trustworthy with customers for a win-win situation.
When partners share similar visions and goals, it makes it easier to grow each other and their customer base. The influence they share leads to stronger businesses that deliver quality products and services resulting in satisfied clients.
What to look for in a business partner
So, you have identified another business that you can partner with for the benefit of your company. But how do you know they are the right choice?
- You share the same goals and values
Every business has its goals and values that it would like to be known for among its customers. Your partner must share the same values if your working together is to be successful. When you don’t share the same objectives the likelihood of clashing is high and may lead to the dissolving or failure of the partnership.
- Your brands align
Building a brand is a painstaking job that should not be put at risk with bad partnerships. Before joining forces ensure that both brands can support each other resulting in the achievement of company goals. When brands are a good match, the result is an increase in the demand for products or services of both businesses.
- You have mutual trust
Good partnerships thrive on respect and trust. Both businesses must trust in each other’s abilities, competence, vision, and decision-making for the partnership to work.
Types of business partnerships
Business partnerships are many with s companies focusing on an agreement that brings them the most benefit. Some of the common types of partnerships include:
- Financial partnership – This is one of the most common types of business partnerships with many upcoming companies looking for funds to stay afloat. The partner can invest money to expand the business or pay for a financial professional to be part of the business to grow it.
- Expertise partnership – As your business grows, you may need technical knowledge to move to the next level. Bringing a partner on board with the skills needed is a great way to get the help you need and grow the business. Experts can stay on board for a short or long time depending on the amount of help you need in the business.
- Expansion partnership – Besides capital, you may need an expert in the field you want to venture into, to make the transition smoother. Having a strategic partner with such expertise and who can take over management as the new business stabilizes is crucial for success.
- Exit partnership- Selling a business to retire or focus on other aspects of life is a good reason to seek a partner. You can bring a complementary business on board and teach them the ropes before handing it over. If you want, you can retain part of the shares of your business until you are ready to let go completely.
Overall, creating positive relationships with other businesses is the way to go when you see signs that you need help. The key is to identify the right partner and take steps towards establishing a thriving partnership. Meeting business owners and understanding how their businesses work is one of the best ways of identifying the best way to work together. In most cases, strategic partnerships can spur growth and bring attention to your business.