A “strategic alliance” is an agreement between two or more companies to conduct a certain aspect of business in a mutually beneficial way. Successful strategic alliances can help small businesses to increase the size of their product/service offering, extend their market reach, improve productivity or create that crucial competitive advantage. Ultimately, this means opportunity for faster-paced launch and earlier growth, without a burden of added capital or operating costs.
Like any business model, a strategic alliance needs research and careful planning. A successful alliance needs to fit your own business profile. Here are some key considerations:
· Create a list of desired partner attributes
· Source out potential partners with a compatible vision and similar goals
· Choose a partner who is focused and well-established
· Choose a partner with a compatible brand/reputation
· If competing in the same market, consider the affect on your market position
· Consider future directions and whether they merge or diverge
· Determine the timing – one time project or long-term relationship?
· Create a contract, including precise expectations you have established together and clear terms of payment
· Create a systematic communication method
· Create a clear exit strategy
· Put everything in writing
Finally, not only will you need to seek out a desirable partner, but you need to be a desirable partner to someone else. This has to be “win-win”, not “how can you help me?” Your own business will need to be in tip top shape with an up-to-date business plan, established procedures, a good track record with clients, professional branding and reputation, and a robust marketing strategy. If these foundations are in place, you may find other companies are seeking you out as a strategic partner. The Brampton Enterprise Centre has a plethora of resources to support you as you prepare to develop a strategic alliance.
Showing posts with label strategic alliance. Show all posts
Showing posts with label strategic alliance. Show all posts
Friday, June 26, 2009
Thursday, May 14, 2009
Strategic Alliances Create Early Growth
A “strategic alliance” is an agreement between two or more companies to conduct a certain aspect of business in a mutually beneficial way. Successful strategic alliances can help small businesses to increase the size of their product/service offering, extend their market reach, improve productivity or create that crucial competitive advantage. Ultimately, this means opportunity for faster-paced launch and earlier growth, without a burden of added capital or operating costs.
Like any business model, a strategic alliance needs research and careful planning. A successful alliance needs to fit your own business profile. Here are some key considerations:
· Create a list of desired partner attributes
· Source out potential partners with a compatible vision and similar goals
· Choose a partner who is focused and well-established
· Choose a partner with a compatible brand/reputation
· If competing in the same market, consider the affect on your market position
· Consider future directions and whether they merge or diverge
· Determine the timing – one time project or long-term relationship?
· Create a contract, including precise expectations you have established together
and clear terms of payment
· Create a systematic communication method
· Create a clear exit strategy
· Put everything in writing
Finally, not only will you need to seek out a desirable partner, but you need to be a desirable partner to someone else. This has to be “win-win”, not “how can you help me?” Your own business will need to be in tip top shape with an up-to-date business plan, established procedures, a good track record with clients, professional branding and reputation, and a robust marketing strategy. If these foundations are in place, you may find other companies are seeking you out as a strategic partner. The Brampton Enterprise Centre has a plethora of resources to support you as you prepare to develop a strategic alliance. Call us at 905-874-2650 or visit www.brampton-business.com
Like any business model, a strategic alliance needs research and careful planning. A successful alliance needs to fit your own business profile. Here are some key considerations:
· Create a list of desired partner attributes
· Source out potential partners with a compatible vision and similar goals
· Choose a partner who is focused and well-established
· Choose a partner with a compatible brand/reputation
· If competing in the same market, consider the affect on your market position
· Consider future directions and whether they merge or diverge
· Determine the timing – one time project or long-term relationship?
· Create a contract, including precise expectations you have established together
and clear terms of payment
· Create a systematic communication method
· Create a clear exit strategy
· Put everything in writing
Finally, not only will you need to seek out a desirable partner, but you need to be a desirable partner to someone else. This has to be “win-win”, not “how can you help me?” Your own business will need to be in tip top shape with an up-to-date business plan, established procedures, a good track record with clients, professional branding and reputation, and a robust marketing strategy. If these foundations are in place, you may find other companies are seeking you out as a strategic partner. The Brampton Enterprise Centre has a plethora of resources to support you as you prepare to develop a strategic alliance. Call us at 905-874-2650 or visit www.brampton-business.com
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