3 Tips For Partnering With Local Businesses

Statistics report that 99.9% of establishments in the US are small businesses, but only 8% are partnerships. That seems inadequate for an environment that promotes entrepreneurship. 

There is strength in numbers, and this saying could not be more apt for business partnerships. 

Furthermore, a partnership is a form of business protection

Below is a discussion concerning how teaming up with other businesses can positively impact yours and how to be successful at it

1. Choose businesses that complement yours

Balance and harmonization are vital components of a successful partnership. It is open knowledge that partnerships work best between businesses with similar interests in the industry. Therefore, there is more to benefit from a business that complements yours than one that does not. 

The convergence lines in your respective companies will become the vehicle needed to drive the partnership. Although you both operate in the same industry, each business has something the other lacks. You can tap into the expertise of the other business and help your establishment to flourish. 

A good example is white label digital marketing. Away from that another great example is a partnership between photography services and a local wedding planning establishment. Both businesses complement each other, and that is the goal you should set for yourself. The obvious absence of unhealthy business competition sets a strong and neutral foundation for the partnership. 

2. Set your sights on more than one partnership

Apart from the agreements and contracts signed, there is no specific rule about how many local businesses you can partner with. As long as there is a mutual benefit, you are free to partner with as many as you can. For small business establishments, more partnerships mean an opportunity to expand your base market. First, the alliance creates a conduit to access the clientele of your partners(s).

As the new market learns about your business, there is an increased chance of patronage. Automatically, that reflects in increased profit margins not just for your business but for the other(s) as well. By partnering, you also create convenience for customers. People love the concept of one-stop-shopping, and if your partnerships offer that, the positive results may exceed your expectations.

3. Test the partnership with a pilot project

You can test if the partnership will be successful with a promotion or a project collaboration. It is also an opportunity to identify any loopholes that may be detrimental to the partnership. For example, who will be accountable for any problems that may arise during the partnership? If it is a 50/50 partnership, are you willing to share the blame? With a pilot project, you have the chance to pick up on all the nuances that can affect the partnership. 

Undoubtedly, you may have to go back to the drawing board if things don't work out. At that stage, any losses would not be significant enough to run either business into the ground. And it will be a helpful business lesson for future partnerships.

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Thanks for Fat Joe Publishing for contributing this blog post for my readers.

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