How to Grow a Thriving, Mutually-Beneficial Strategic Partnership
Similar to making friends as a child by teaming up with others on the playground, businesses require friendships to grow and thrive in a market economy. The goal of most companies is to beat the competition by purchasing and using the least expensive materials to produce their products and advertising campaigns to market them. Unfortunately, most companies believe that this traditional Company-Supplier method is the only way to save money and increase revenue. As we mentioned in one of our previous blogs, the Company-Supplier method is tried and tested, but an even better practice exists: building and maintaining strategic partnerships.
When a company goes alone into the business world and scours the options for the least expensive ones, they can often achieve a reasonable level of success. Still, that success only goes so far before it plateaus or declines as a result of fluctuating or rising prices from the suppliers they use, unforeseen expenses, and fluke bad quarters. A strategic partnership, on the other hand, is a friendly and mutually beneficial friendship between Company and Supplier that can help keep supply prices at an agreed-upon price and encourage the growth, expansion, and continuing success of both companies.
Read on to learn more about how to develop and maintain a strategic partnership.
The Four Steps to Developing Profitable Strategic Partnerships
- Know Your Company
Before entering into any partnership where both companies would need services and security from the other, it is essential that both companies understand their identities, and decide on short- and long-term goals and what tasks must be performed to achieve those goals. Remember that a strategic partnership is a relationship that benefits both parties.
- Partner With Ashley Capital Group
Ashley Capital Group has a database of industry professionals looking for credible, reliable businesses with which to build an alliance. Companies can contact us to take advantage of our extensive network of contacts and many other resources we provide. They should make sure to do their own research as well, and consult our M&A professionals about potential partnership proposals. We will help find the best partners available!
- Learn About Each Other & Agree to Mutual Business Goals
No strategic partnership is complete without mutual goals. Companies must establish a clear vision of the partnership, explain strengths and weaknesses, and determine business solutions to meet the other partner’s needs.
- Address Roles & Responsibilities in Partnership
Partners should agree to the parameters of the relationship and the roles each business will play. Accountability must be established and every agreement documented, and building strong lines of communication and friendly rapport should be a priority. When two partners communicate effectively, addressing concerns and making adjustments is much easier and more fluid.
Strategic partnerships with strong foundations in symbiosis, communication, and accountability are frequently successful and beneficial to both companies. With our network of willing partners and the experience of our professionals, Ashley Capital Group can bring two or more businesses together for a profitable relationship. For more information on our strategic partnership services or on the best way to sell a business, give us a call today! If you are deciding on how to sell your small business, we have the resources and connections available to make the best sale possible.