Have you ever thought of teaming up with a strategic partner, a like-minded organization that your company joins forces with to achieve a bigger financial goal? Establishing a profitable strategic partnership can increase your credibility, distribution and positively impact your bottom line. A strategic partnership can take several forms such as a business partnership, joint venture or short-term alliance. These 4 tips can help jumpstart your thinking.
Brainstorm Potential Partners
Size doesn’t matter when thinking about strategic partners. Select those that complement your company’s offerings in some way. Look for organizations that can bring in new customer segments, distribution or manufacturing capabilities. The challenge is to find a partner that’s culturally aligned with a similar vision, one that wants a long term relationship. That said, expect some back and forth discussion along the way, which is also a good indicator of how things might or might not work.
2. Your Value Multiplied
When considering a partner, think about the value that your company brings to the relationship. Why would a partnership with a particular organization be a benefit? Is there a synergistic chemistry and shared vision? What is there to gain? Are there any potential risks? Both sides should be able to respond to these questions clearly and with honesty. Note that the most successful partnerships work best when each side’s strengths boost the joint venture and elevates the alliance in some way.
3. Things Take Time (TTT)
Avoid hurrying into a strategic partnership. Take your time and think it through without emotion as sometimes excitement and enthusiasm can create blindspots. Meet in person a few times to double check on communication style and follow through to make sure that both parties are equally committed and on board in similar fashion.
4. Protect Yourself
Great partnerships are worth protecting in writing. Seal all agreements to avoid disagreements and messy breakups in the future. This is a hard conversation to have but by far the most important to protect your mutual interests and ensure long term growth as partners. If a possible partner bristles at putting an agreement, it could be a red flag indicating they are not the right one for you.