Profitable Strategic Partnerships

Profitable Strategic Partnerships
The longest lasting and profitable strategic partnerships
are those in which each company brings something to the
table that the other company lacks. There are certain
situations in which it simply makes sense to form a
strategic partnership. For instance:

- Partner when one business lacks wide access to the
market, and the other partner has a large customer base or
access to the market, but needs more products or services
to bring to its customers. A great example of this is the
partnership between IBM and Microsoft. Microsoft offered a
great product, but had no market reach; IBM had reach, but
needed the innovative software that Microsoft had created.

- Partner when one business is highly specialized or has a
strong niche skill. Large businesses often outsource to
smaller businesses that specialize in certain areas.

- Partner when trying to break into a new market, while
keeping costs contained. - Partner in government
contracting situations in order to win the contract. A
larger company may partner with a smaller enterprise in
order to qualify for certain contracts that are reserved
for minority-owned businesses or small businesses.
Sometimes the smaller company will need the resources of
the larger business in order to adequately fulfill the
government contract requirements.

Also, consider partnerships when there is a need to get to
the market rapidly. By focusing on your core competencies,
weighing the option of creating a product or service versus
finding someone who already offers the same thing, and
thinking win-win, you can bring a potential opportunity for
partnership to a company with whom you would like to work.
Keep in mind that you need to think about how all the
parties in a partnership benefit, not just your company.
If you are only out for yourself, your partnership will
fail.

A strategic partnership can also take the form of finding
profit by cutting costs. For instance, two small
businesses might find a way to reduce rent by sharing space
in a warehouse or office complex. Or perhaps you can share
the cost of a database subscription or business group
membership with a strategic partner to help you both defray
the costs. Small businesses can also lease space from
larger businesses. One woman runs her small coffee shop
out of a local gas station. Her lease monies were more than
the retail profits that were being generated by the few
items that were selling in the space. She had a steady
stream of clientele. Both businesses found the arrangement
profitable.

Think ahead when looking to develop profitable strategic
partnerships. You can look to increase market share. You
can reduce costs and keep more money in your pocket. You
can partner with large or small firms. Whatever you decide,
it's in your best interest to keep your potential partner's
best interest first and foremost in your mind's eye. By
thinking ahead, and seeing the world of opportunity, you'll
be able to develop partnerships that create a better
business environment for everyone involved.

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Christian Fea is CEO of Synertegic, Inc. A strategic
Collaboration Marketing consulting firm. He empowers
business owners to discover how to implement Integration,
Alliance, and Joint Ventures marketing tactics to solve
their specific business challenges. He demonstrates how you
can create your own Collaboration Marketing Strategy to
increase your new sales, conversation rates, and repeat
business. He can be reached at christian@christianfea.com -
http://www.christianfea.com