Experiencing a global pandemic has shown what types of strategies lead to a more resilient business. While quick pivots and crisis management measures can go a long way in your startup’s survival, there are other ways to strengthen your business that you can consider for the next year.
Strategic Partnerships allow for a mutually beneficial arrangement that will be a great asset for your business. From sharing research to providing more value to your target audience, a partnership could be what your business needs to reach your 2021 goals.
While there are many advantages that stem from business partnerships, let’s explore three of the key benefits.
Broaden Your Market
Every business meets a specific target audience’s need. Whether you’re an AI company that serves researchers or a B2C retail company that fits a niche interest, your business has a market. Establishing a strategic business partnership can help you to expand that market in a unique way. Your partner’s target audience might not seem like a perfect expansion on your own at first glance, but that might be just the reason why it is so effective.
When beginning to target a new market, building trust is important. Your partnership will allow both you and your partner business to gain a foothold in each others’ audiences without implying a large up-front investment from either side. That head start could be what makes the difference in regards to you pulling ahead of your competitors.
Another benefit of strategic partnerships is the ability to pool resources. From market research to knowledge on trustworthy and effective vendors, distribution channels and connections, your partnership will provide both with an advantage. Between the two of you, more ground can be covered in distinguishing effective strategies from ineffective strategies. In addition, project collaborations where each party contributes different assets lead to more efficient and successful ventures overall. Joint training sessions are another method of cutting costs and maximizing value within a partnership.
When pooling resources, it’s important to preserve transparency with your partner. Be honest about your organization’s strengths and how you think they can best support your partner and trust that they will do the same. This foundation will ensure that the partnership remains valuable to both parties and can continue to find new ways to improve.
The COVID-19 pandemic has made it difficult for many businesses to thrive. In Canada, 14% of small businesses were forced to close in the last year. While a partnership doesn’t guarantee that your business can survive in times of crisis, it can be the differentiating factor.
Having a partner that can contribute experience and help in finding solutions for your specific challenges will not only help you survive but will also make strides towards your business thriving.
The pandemic has put a lot of startups in a business-survival mindset. While that is an effective strategy for the short-term, it’s also important to remember to prioritize growth and longevity. A stable partnership will also provide more opportunities for flexibility and adaptability in order for your businesses to continue to operate in the future.
Here are some examples of strategic business partnerships to take inspiration from.
Looking at the coming year, there are many new strategies you can implement in order to ensure your business is as successful as it could be. When planning out your goals for the year, consider integrating a business partnership into the strategy.
A strategic business partnership is an asset to your business. From exposing your company to new audiences to sharing resources to ensuring business survival, if you can establish a mutually beneficial, stable partnership, your business will gain a large competitive advantage.
Do you have experience in business collaborations? Share any tips you have with us in the comments!