January 23, 2012
Entrepreneurs and start-up businesses sometimes, in a flawed approach, consider going it alone at the onset of operations, or when it comes to new opportunities. If your business has valued opportunities or access to a resource, then others will be interested. Likewise, you may find external opportunities with companies that may have synergies with your business and your lines of products and services.
In a few case examples, if a new business venture has operated in isolation, the competition in that industry had little interest other than keeping track to ensure the new start-up wasn’t encroaching on their market share. As you may be preparing to launch your business, the time might be right for you to work with outside firms to further mutual business objectives, and enjoy mutual benefits.
Developing close working relationships with partners may result in many potential advantages for your business, including:
- Greater benefits gained through economies of scale
- Sharing of risk associated with a new project, product or service
- Use of your partnering firms’ supplies and equipment, versus your business having to supply all infrastructure and paying for all costs associated
- Use of firms’ working capital, reducing the need for you to obtain financial resources
- Capacity and skill transfer, drawing upon existing expertise in operations and management
- Collaborative marketing, rather than having to develop all of this intelligence in house at the onset of operations
- Access to more partners
The potential benefits of working with the partnering firms and companies may potentially outweigh any negatives, and should be investigated and considered. Many successful businesses have noted key success factors including developing strong partnerships and joint ventures. However, ensure that you spend the time to develop relationships, demonstrate business cases, and build trust with partners.
© Strategy Plan One 2012
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