3 Reasons Why Forming Strategic Partnerships Can Benefit Your Business

Strategic partnerships are a great way to grow your business and raise brand awareness while helping another business owner to do the same. It’s about setting objectives you both want to achieve for your own business and working together to make it happen – whether that’s through sharing expertise and resources or leveraging brand awareness and footfall.

What is a strategic partnership?

A strategic relationship is a mutually beneficial arrangement between 2 or more businesses that is usually formalised under a contract outlining the objectives, actions and benefits for each business involved.

It’s not a partnership as each business remains independent and responsible for what they bring to the table but about setting shared goals and objectives that will bring benefits for everyone.

So, what are the benefits of forming a strategic partnership with another business owner?

1. You can offer complementary services through a strategic partnership

One of the key benefits of forming a strategic partnership is being able to offer your clients more without having to take on additional workload yourself. For example, as a business development consultant I work with my clients on strategy and planning to improve their business growth.

I may suggest things like content marketing, search engine optimisation and virtual assistants to help their business grow. By forming partnerships with businesses that offer those services, I can implement the strategy for my clients knowing that each task will be handled by a trusted professional and they benefit from my services in return.

Look for key problems that your current clients have and look for a business that can provide the solution and find a way in which your services or skills can benefit their clients too.

2. Strategic partnerships help you pool expertise and resources

It’s impossible to wear every hat in a business to keep it running smoothly. Whether you’re solely responsible for every task or you have a team, it can be a nightmare to keep on top of things and get your business to where you want it to be, but one of the key benefits of forming a strategic partnership is the ability to share the workload.

A good example of this might be in terms of marketing. You might be an absolute whizz with all things social media but struggle with copywriting and getting an email newsletter together whereas another business owner might be good with words but doesn’t have the time to use social media.

Rather than you both struggling with these respective tasks, you could take on the social media for both businesses while they take care of the email marketing and together you gain new customers and better brand awareness.

3. A successful strategic partnership can help you raise brand awareness

Picture of a business owner working on their strategy and deciding on strategic partnershipsEven big companies and corporations form strategic partnerships with each other because they’re so beneficial, particularly for brand awareness. A great example of this is Ben and Jerry’s ice cream and Showcase cinemas. The cinema chain needs to provide quality refreshments to its visitors and the ice cream firm wants to build brand awareness among a wider audience. By working together, both companies benefit from the arrangement.

If you provide a niche or bespoke service that doesn’t generate the same awareness or footfall as another business, it can be beneficial to create a strategic partnership to leverage their network. A good example of this might be a wedding dress shop working with a wedding planner.

 

The key to forming a strategic partnership is to understand your target audience

You will not be able to offer everything that you’d like to for your target audience, but by understanding their needs you can create a strategic partnership that benefits them to help your business grow.

A good example of this might be a hairdresser selling a new brand of coffee. Having customers in their salon for several hours needing a drink is a great way to introduce the brand. Selling bags of the coffee is a great way to raise some additional revenue and the coffee company enjoys brand awareness and new customers too.

Strategic partnerships take some work to get right, but when clear objectives are set and everyone involved knows what part they have to play, they can be a fantastic way to add some additional strings to your business bow.

To discuss your ideas for strategic partnerships, or simply to discover more business development ideas that can help you grow in 2019, get in touch with me today.