The Business Coach: Building Strategic Partnerships

(Last Updated On: November 29, 2013)

By Leon Jenkins, co-owner of DYP, Inc.

handshakeOne major way for your company to gain a competitive edge is by forming strategic partnerships. A strategic partnership is a mutually beneficial contractual alliance between two businesses; simply stated – a win-win contractual proposition.

Yes forming the right strategic partnership can greatly enhance your brand and have a very positive impact on your bottom line.

Here are some key considerations when forming strategic partnerships.

1. If you are a small company, look for a larger company that is willing to share marketing, advertising, product development, sales, human resources and technology, and other functions.

2. Look at establishing partnerships with suppliers, vendors, banks and credit card companies that afford special programs to assist you in better serving your customers.

3. Look at partnerships where you are allowed to piggyback off of an already well established brand name.

4. Look for partnerships where you are able to negotiate a better price for supplies by combining with another business to order in bulk.

5. Look for partnerships that afford you the opportunity to launch a joint-marketing campaign.

Strategic partnerships do not just happen; you have to be proactive and go seek them out. And remember – if it doesn’t look like a win-win partnership opportunity, don’t waste your time pursuing it.

References:

1. http://en.wikipedia.org/wiki/Strategic_partnership

2. http://www.openforum.com/articles/how-strategic-partnerships-benefit-small-businesses/

This is a regular column presented by DYP, Inc., a local business support company, providing tips on a range of business topics to equip and empower aspiring and existing business owners.  For more tips, visit  www.dyp356.com or call 832-816-1953.