There are many benefits to partnerships for companies of all sizes. However; for small business owners finding the right set of partners to help grow a business can be the best strategy available. Most small businesses have limited resources and staff available to execute business plans and strategies to reach target demographics. Partners can bring existing customers into the fold. A business that is new to an industry often needs the validation of other companies within the industry to really be able to break out and establish their own credibility. Partnerships with the right company can quickly elevate a small business when joining forces with a larger industry player.
One of the leading advantages of a partnership for a small business owner can be the co-marketing capital that may be established. For the larger partner to see a return on their investment they may spend significant capital marketing and branding the smaller business partner’s product and services that otherwise the smaller company would not be able to afford. Finding the right partner that is capable of providing this type of benefit allows a small business owner to fill gaps in their marketing strategy and reach new customers in a more cost effective way than attempting to acquire new customers on their own.
Access to People
A small business that is comprised of just a handful of people may not be adequate to properly sell and service a large customer base. Creating a partnership with a company that has a marketing and sales team dedicated to promoting partner products and services will allow the small business to focus on what they do best, creating innovative and quality products while their larger partner handles the details marketing and selling to customers. Making sure there is a smooth transition from sales transaction to servicing the new client is critical. With proper planning this can be done easily. There is nothing better for a small business than to have a handful of hungry sales people knocking on doors and making phone calls selling the product for a revenue share.
Access to Capital
When forming a business partnership sometimes there will be a fund of co-marketing dollars set aside for promoting the small business’s brand and products to the market and industry insiders. These types of co-branded campaigns are excellent in developing strong brand recognition within the industry. While these types of activities are usually not available when two small businesses form a partnership, it is certainly one of the best advantages of a partnership between a small business and Fortune 1000 company.
Every small business owner should evaluate what it is they are seeking from forming a joint venture partnership. Once this has been established then the goal is to identify the right partners that can help meet those objectives. Whether the your business is just looking for a huge rolodex of hot leads or needs support in developing brand awareness, each partner will bring a varying degree of assets and expertise to the table which should be evaluated on a whole in order gauge how successful the partnership will be. Every small business gains a positive impact from a good partner and should keep an open mind when approached about business deals that can help the company grow revenue.
Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
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