A strategic partnership can be defined as a formal agreement between complementary businesses that are formed in order to build stronger market positions for the participating parties.
It allows businesses to get opportunities to expand past their current resources in order to get a better grasp on their market.
Because this strategy has been so beneficial for companies that are participating in partnerships, it has become a regular part of modern-day business plans.
Who Can Benefit
If you’re looking for a win-win situation that benefits both sides, then a strategic partnership could be the way to go.
It benefits everyone involved. As a business, you are able to expand your reach and increase your market reach. Customers can benefit from the strengths of the participating companies and get the resolution that is right for them. Employees are even able to benefit from getting new opportunities and being exposed to new ideas and perspectives.
This also helps to build collaboration opportunities and longevity of the companies as well. Companies can offer and direct their customers towards the solutions that fit their needs best and help them become more successful in the process.
One benefit a partnership can give you as a company looking to get their foot in the door is by getting fast traction in a new market. They help to strengthen your position in your market and attract more customers to your business.
This is because the customers who have been working with and already trust your partnerships company will give your business a vote of confidence because you are tied to them and their reputation.
Partnering with Competing Companies
When it comes to thinking about partnerships with the businesses gunning for the same customers you are, many people are hesitant to believe that this is an idea that can benefit them.
Well, I’m just going to say you should probably rethink that.
Businesses are able to have more success by merging with other talent and expertise that’s out there and giving their customers better service and options that are right for them.
Sometimes there’s going to be a customer who comes to you, and your business just isn’t the right fit for them. If this happens to you, its obviously going to be happening to the other companies out there too. If you have a strategic partnership, you are able to just send them over a lead that’s looking to buy, and they’ll be doing the same for you.
It’s better that somebody gets the business than nobody at all, which is unfortunately what happens more often than not.
Strategic Partnerships Need Trust
When you have a strategic partnership, one of the most important factors in that relationship is undoubtedly going to be the trust that goes into it, especially if the situation is like the previously mentioned partnership with a competitor in the industry.
Trust is at the core of every relationship… well, every good relationship which is why trust plays such a big part in business partnerships.
Trust is something that is earned over time which is a big reason why many of the strategic partnerships out there have developed from existing relationships. Odds are that these businesses have worked together in the past and have developed a mutual trust and appreciation for the work they have done together.
When you don’t have trust, you will run into issues real quick and have a hard time solving them in the process. It’d basically the glue that holds everything together and once that’s out, everything begins to fall apart.
There are several different types of partnerships out there as well ranging from the marketing and doing joint events and content, to sharing revenue and equity-sharing partnerships.
Before going full in on a partnership, you can have the opportunity to dip your toes in the water and see the potential of how those partnerships could play out before going further into it.
A strategic partnership has the ability to get your business, more business.
What’s nice about these is that there are different levels of partnerships you are able to do to test the waters and see if it’s the right thing for your company to do.
If it is something that you are looking to start taking advantage of, take a look around you and check with some of the companies that you are working with. If the situation seems right and can benefit both of your businesses, talk it out and see what that possibility could look like for your businesses.
Just remember that like all relationships, communication and trust are key and will play a big part.
Hopefully, this gives you a better idea of the power of strategic partners and is something you can use to your advantage.