1+1=3 - Building Partnerships That Add Value To Your Business

Probably one of the oldest concepts around, 'you scratch my back, I'll scratch yours'. Interestingly though, small businesses seem hesitant about wanting to adopt this notion. As small business owners, resources and knowledge are only limited to what we ourselves know, and at most, a few members of the staff. And if outsourcing appears seemingly impossible, wouldn't collaboration then be the next most rational alternative?

In a business environment where increasingly, small businesses are being phased out by the bigger players, it's essential that we work together to build a greater share of voice. But before you start tying up that piece of cloth to your forehead in anticipation of echoing war cries, do be reminded that as in all business relations, partnerships also have to be thoroughly planned, and perfectly executed. Only then can you enjoy true cost savings and the sharing of expertise.

For those who are already sold that collaboration is key to remaining competitive, may I continue to offer some suggestions as to how this may work out? There are thousands of permutations as to how your business can work with a partner. I can't list them all, but what I hope to do is to jolt you into remembering that no business is an island.

Vertical partnerships

Relationships of such are usually forged between you and the party who provides you with a service, or vice versa. Take my blog for example. I would like to design an e-flyer but I'm horrible at doing that. Spending a couple of hundreds to hire a professional may not seem prudent at this time since I've just started out. So what I do is to find someone who is willing to work with me on barter. He helps me with the e-flyer, and in return, I offer him an ad space on my blog. Since I'll be speaking to small business owners, exposure on my blog will benefit him as much as it would for me.

Horizontal partnerships

Working with other small businesses in the same industry may sound suicidal, but always remember that unity is strength, even if you are competitors. Your combined bulk purchases could lead to a considerable amount of savings. Alternatively, a few online retailers of women's fashion could also work together to develop a loyalty program. You shouldn't worry about 'the other small players' at this point. Gather strength and launch a campaign to compete against the big boys. When trust has been built over time, there will be so many other interesting projects in which you can further collaborate on.

Diagonal partnerships

Diagonal partnerships happen when you work with businesses that do not compete in the same industry, but target the same group of customers. For example, restaurant owners may offer vouchers to customers who visit a spa, and vice versa. To promote this initiative, the 2 parties can do an email blast to their own respective databases, or put up posters at their outlets. What you have effectively done, is to double your reach versus what you would have achieved by running this promotion alone.

The key to a successful partnership is that both parties must mutually benefit from the collaboration. So, if you are planning to approach a partner, do also think about how your partner could leverage on you.

Please reply to this post if you would like to propose an oppportunity.