September 23, 2020
CEOs across all business sectors agree that strategic partnerships are critical for any company looking to compete on a global scale. Smart companies see partnerships to acquire customers, drive revenue and enter new markets. They also rely on partners for new ideas, insights and expertise that can impact business performance, market understanding and product innovation.
Despite the increasing need to develop partner relationships, most enterprises lack the knowledge, connections, and management capabilities to realize the full potential of partnering. Many companies lack the formal strategies and expertise to identify and nurture the most beneficial relationships.
As study by BPI in conjunction with CMO Council looked at the value of strategic alliances and conclusively concluded that partnerships are extremely important for business growth (85%). It went on to show that partnerships are essential for leveraging new business, growing revenue, and expanding global reach.
Another positive side of this relations is the introduction to new customers because partners have a vested interest in introducing new business – they also have a wider spread of contacts. They also bring strategic focus as they want their partner to fit into their development plans. By the very nature of the partnership, your partners are bringing added value into the business with their system and technology expertise and expertise that is not necessarily in house. Partnerships also enhance the marketing effort which is essential in today environment. Today we rely on digital marketing and, search engine optimisation and social sharing to create awareness. By having partners linked to your company, talking about your company, sharing your posts, and working on behalf of your company you get that viral effect.
Of course, this must be handled correctly for this to work effectively. In an article on entrepreneurship the Kauffman Foundation liken partnerships to marriage. The partners need time to get to know each other and time to develop a level of mutual respect and trust.
Clear guidelines should be established (possibly the pre-nuptial?) and performance levels agreed so both parties are clear on the working relationship. Having standards is important – but of equal importance is the ability of each side of the partnership to adjust so that the relationship can flourish to a new and enhanced working level.
Take a staged approach to creating a partnership. Initially go through a due diligence process so that both sides are comfortable with the relationship. Understand the finances, potential conflicts of interest and other related areas of potential concern. Use the first couple of years to ‘bed down’ the relationship – as with all relationships – there is a settling in period. As the relationship matures set management reviews, guidelines, targets, and strategic growth plans which benefit both sides of the partnership. Finally, do not forget marketing – both sides should be involved in building the potential customer pipeline.
Freight Finders work with several business partners each of whom are established in their fields and bring together a range of expertise and technologies – these include Palletways, DPD, UPS and others. It is through the strength of these key relationships that we can provide you with the excellent quality service we provide and of course the cost savings we can pass on to you.
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