Strategic partnerships = magic math
We all know the old adages: “team work makes the dream work” and “many hands make light work.” However, sometimes in business we get so caught up in our own numbers and our desire to grow that we forget the value that can be reaped when we partner with others.
Sometimes it pays to find strategic partnerships. These partnerships can add real value to your business and can be both formal and informal. The key is building and sustaining relationships that enable the collaboration to be greater than the sum of the parts. When we think about value, consider the benefits of an effective strategic partnership focused on key areas of building your business: marketing and finance.
Strategic marketing partners
Effective marketing is one of the most important keys to a successful business development strategy. Without a proper marketing strategy, customers will never be aware of a business or its location, products, or services. The problem with marketing is that it can actually hurt a business if done incorrectly.
Developing strategic marketing partners can help you grow your business at a very low cost. For example, if the partner is in a complementary business, you could refer clients between one another. Both partners would increase revenues with no additional advertising costs. Take it to the next level by co-marketing to one another’s client base!
Strategic financial partners
Strategic partners can fill a number of financial roles: accountants, bankers, investors or financial advisers. Their purpose is to help monitor the flow of your company’s money and come up with new solutions that increase the amount of money available to you.
Creating these relationships with strategic financial partners can take some real trust, but remember, you want to maximize your ROI. You will benefit greatly from having an extra set of eyes, perhaps more objective than your own, keeping tabs on your financial status. Finding ways to protect and grow wealth is their business. Allowing them to make suggestions and give guidance to you can open new paths to prosperity.
Summing it up
The strategic partnerships you cultivate will keep your business growing and keep you aware of new opportunities. Working together broadens the horizons and potentially builds more wealth for everyone involved.
Effective strategic partnerships take less time, energy, and money to create a greater presence in the market — for both you and your partner. This magic math happens when the team created generates more value than the individual players could on their own.
About the Author:
Dan Doran, CVA is the Founder and Principal of Quantive Business Valuations, a certified valuation practice serving privately held businesses nationwide. He consults on hundreds of valuations each year, ranging from cases of divorce litigation or SBA 7(a) lending requirements to buy-sell agreements or purchase and sale proceedings. Learn more at quantivevaluations.com.