In our increasingly more interconnected society, your competition could be in the next street or on the other side of the world. Partnerships are an effective way to maintain a competitive advantage by combining skills and expertise, we can ensure we stay relevant to the needs of our customers
Credibility by Association is a major benefit when creating partnerships or joint ventures. Think about it, if you are launching a new business or even just expanding into a new industry/niche etc., what better way to do it than to partner with someone already established in that industry.
Partnering isn’t only an advantage for larger companies. Whilst the term Joint Venture (JV) was often used for large companies creating new legal entities to take new products or services to market. Today the term is used more casually by entrepreneurs relating to smaller collaborative projects.
Whilst a partnership can be defined in several ways for me, it is simply two or more entities, collaborating in a structured way to achieve an agreed outcome.
A number of factors may vary within my definition, namely the entities (Individual or organization etc.), the structure of the relationship (Contracted, new legal entity etc.) and of course the desired outcomes which may not be the same for all parties.
There are many benefits in partnerships, here are but a few;
• Increasing your reach by combining your networks
• Mutual endorsement – cross referrals
• Combining your capabilities
• Reduced overheads
• Media Attention
• Increased Profile
• Credibility by association
• More opportunities
So having been sold on the benefits, how should you go about selecting the right partners?
This is actually really important to get right if you want to achieve something meaningful and avoid disputes. Here are a few areas to think about when seeking the right partners and more importantly, to make the work.
Values – Take time to identify people or organizations whose values are aligned with your own. Whether those are values underpinned by morality (honesty, integrity etc.) or relating to people (Customer Service, respect, personal development etc.) or even the practical things relating to how you implement (innovation, accountability, detail orientated). A word of warning, getting this wrong could impact your reputation.
Relevancy – Seeking partners with complimentary skills or assets is wholly sensible. In relation to influence it may be that you simply both extend each other reach to your respective audiences.
Mutual Benefit – If one partner gains significantly more from a relationship it can be a cause of conflict. Hopefully this will be something you have already thought about and compensated for. If you really want a long term partnership seek win-win arrangements.
Establish The Ground Rules– Establishing the way you are going to work together and managing each other’s expectations up front is essential. Avoid assumptions and really spell out how you would like the partnership to work.
Communication is Key– Research suggests that the number one reason for the breakdown in partnerships is poor communications. Seek clarity at all times and establish regular times to discuss progress.
If you are interested in learning more about partnerships and how we help our clients strategise, then implement, why not book a call with us… hit ‘Let’s Talk’ on the menu above.
