Strategic Partnerships for Your Business

By Joleen Small

You may have started your own business, but you can’t run it all alone. This is where forming strategic partnerships comes in. Collaborating with other businesses, organizations, or entrepreneurs is a good way to outsource tasks you may not be able to complete on your own, expand your reach, or offer new products and services. It can also lend a sense of credibility to customers and investors depending on the reputation of the business with whom you partner. According to Business North Carolina, the right partnership “attracts financial investors who see the strategic partner’s commitment as validation of the company’s potential.” Not to mention, it can help small businesses become better at navigating the landscape than larger corporations.

Figure out what your goals are in forming a partnership. Do you want to enter a different market? Do you need help distributing your product? Find the partner whose goals and values align with yours and who has a similar vision of where you want your businesses to go. Be sure to consult an attorney to help you form a partnership agreement before you go into business with anyone. You want to work out any important legal details before you formally enter a partnership. The following are some types of partnerships that small businesses may form. Take a look and decide which type is best for your small business. Visit the Small Business Administration’s website for more information. 

Referrals: You and your partner recommend your respective businesses to potential clients, i.e., your partner mentions your business to a potential customer who is in need of your product or service and vice versa.

Joint Marketing: Both businesses use their marketing resources to promote themselves at the same time. This can mean co-sponsoring an event, joint advertising, or planning a marketing campaign with both using their branding.

Product development: The partners work together to come up with a new product.

Tech/IT: A tech company works with you to provide IT support, website development, or other technical help.

Distribution: One company partners with another to deliver their product to their customers.

Social good/ cause/social entrepreneurship: A small business may work with an organization providing a social good on an event or a campaign. This can be for things like fundraising or raising awareness of said cause. This can help build the company’s reputation and make it seem like a good world citizen.