Business partnerships are wonderful for a host of reasons. But one of the best? Executed properly, … [+]
No business operates in isolation. Forming healthy partnerships is both an art and a science that when done right can save you serious time and money. More than 75% of technology, media, and telecommunications CEOs cite partnerships as a critical component of their business’ success, and this sentiment is echoed in other sectors.
Whether it’s a short-term collaborative product with another established brand, or finding the right fit with your key suppliers or distributors, data shows that these connections can act as a springboard for your business to find lasting success.
While you might want to jump in head first to create a win-win business partnership, it’s a good practice to first survey the options. Recognizing which opportunities will allow you to best capitalize on what you already do well will help ensure you get the most out of your partnerships.
1. Gain Access To New Audiences
Working with the right partners opens up an entirely new audience for your business, one that is more likely to be receptive to your business. Partnerships are a quick way to obtain one of the most important and difficult-to-gain resources in modern marketing — trust.
Rather than spending several years of resources cold marketing to these audiences, collaborations can act as a warm introduction to new audiences. This value can’t be overstated, as customer trust has been on the decline for years, especially with younger demographics who trust only 28% of the brands with which they do business.
It takes years to earn goodwill and support the old-fashioned way, but a successful collaboration gives you an inside track toward acceptance with skeptical modern audiences.
2. Utilize Specialized Expertise
Knowing what you excel at can get your business off the ground, but recognizing when to step away and let the expertise of others shine makes an immediate and powerful impact on the bottom line.
As Han Butler, president and co-founder of ROI CX Solutions, explained during a recent conversation with me, “You can’t expect to be an expert at every facet of the business, and knowing how and when to best transfer tasks and responsibilities to partners is a key developmental step for any business. Certain tasks like lead generation and managing call centers are expensive in terms of setup and upkeep. But if you find a partner who can handle these tasks without a drop in quality, they cut costs and allow your team to focus on what they do best.”
Butler continued, “Business partnerships can both simplify and amplify the efforts of your team beyond what is possible acting alone. Partners provide expertise that might not be present within your team, shoring up potential weaknesses before they can create a financial drag.”
Taking stock of what your business does well, and what areas need external support, is the kind of self-reflection necessary for any brand to continually function and flourish.
3. Expand Product Utility
Businesses that capitalize on opportunities for innovative collaboration discover how their existing products and services can be used in new and often exciting ways.
In some cases, these partnerships might even give your brand unexpected utility and wider usage — such as when Uber and Spotify formed a partnership so users can select their soundtrack for their upcoming trip. A decades-long partnership between Nike and Apple for metric tracking during exercise sessions similarly raised the value of both by simply building a bridge between their shared utility.
These famous examples of successful partnerships brought together users of two related but separate audiences without skipping a beat. When two brands make the most of what they have individually and combine their efforts into an offering that uses the best of both, they can create a smart partnership that epitomizes the win-win, collaborative business relationship model. Both businesses benefit, as do the customers themselves, who then walk away with a higher opinion of both brands.
4. Strengthen Your Network
A strong and varied business network is an invaluable tool in any business leader’s toolbox to save costs now and down the line. Simply engaging in the search for prospective business partners will extend and diversify your contact list, and you never know what kind of information you might find from these outreaches.
Some connections might be ready for immediate connection. Others might be months or years away from being ready. Regardless, gaining access to these varied sources of knowledge can start turning the gears of innovation, tune you into market trends, and help you refine your integral processes as you exchange information, tips, and recommendations.
Tapping into these wells of experience offers an immediate avenue to cut costs via collaborations right now. But that outreach also provides you both with a handy tool to keep in your back pocket for when the move makes the most sense for both sides.
Make Moves, Save Money
Business partnerships come in all shapes and sizes in modern business, whether it’s a relatively routine supplier relationship or a major, all-hands-in joint marketing campaign. Each has the potential to catapult your business forward while saving money and time.
Knowing what to look for in a business partner is just one piece of the puzzle. But once you find that right fit, these connections don’t just help cut costs, but they also give you the confidence to make major moves for further growth and expansion.
