It is possible to create a strategic alliance or partnership, which can help you jumpstart or grow a business. Many companies are seeking ways to increase market share and sales while investing a minimal amount. This is called “doing more with little.” This article will help you design partnerships/alliances with other companies.
A strategic alliance is an agreement between two or more companies that offer complementary products. They are often in different industries. A strategic alliance’s primary purpose is to increase your product/service market share. These are the steps to create a successful strategic partnership that will last for many years.
1. Completely understand your product/service.
Get to know your customers so you can understand what is working for them. These are the questions you should ask yourself:
Why do customers like my product? Why are they not?
What demographics are my customers?
Which marketing strategies have proven successful and why? What hasn’t worked?
2. Set clear goals for your product/service.
You should have goals for growth in sales and other vital metrics. Also, you should have soft goals like brand awareness and others. Specific metrics and goals will help you to identify the best partnerships and build guiding principles that will ensure your long-term success.
3. Analyze products and companies that complement your product or service.
Ask yourself whether you require the resources of another company to grow your business. This step will help you establish a set of principles, such as a need for a customer who focuses on high-end clients, someone that is located in a particular area, or in a specific industry. You should also consider which companies are more challenging to get into. You may believe that company X is a good match, but they might not be making it a priority. This could cause delays. You don’t have to be afraid to change gears and look at a smaller company that can make things happen faster and has the right products and services to help you grow your business.
4. Get to know the partner you are approaching in depth
Do your homework. This will help you better understand the company and how you can help them grow. Focus on the customer and not your company. You want them to understand the benefits of your product and feel valued.
5. Partner with others to create a win-win situation
This is crucial as it will ensure that both of you are gaining valuable information that will benefit your business. Don’t be afraid to change your mind, be open to suggestions, and be flexible. Your partnership could be used to exchange marketing channels. This is an excellent way for you to access engaged customers through your partner’s channels without funding. Make sure you both get and receive something that is mutually beneficial.
These steps will help you build a solid long-term partnership.
Amy Masters is the CEO of Dante Consulting LLC. She has more than 17 years of experience in marketing and business development. Her clients and employers include Fortune 500 companies as well as start-ups. She was instrumental in forming a strategic alliance which resulted in significantly increased sales for American Express and Proctor & Gamble. She has also worked in other areas to establish strong partnerships.