A strategic partner can offer an amazing boost to your business. Strategic partnerships (sometimes called joint ventures) are made when you find another small business owner who has access to your target market without being your competition. The two of you create referrals for each other or share marketing campaigns or both.
Here’s an example – if your small business sells custom hosiery, another SBO who sells shoes would make an ideal strategic partner. You and your new cohort offer referrals and support each other’s marketing – when a customer buys a pair of your stockings, they get a percentage off a pair of her shoes and vice versa.
Identifying a strategic partner is one thing. Working with them is another. Here are a few of my favorite tips for creating a strategic partnership that works both ways, builds both businesses, and avoids frustration.
- Find a partner who has a work ethic that matches yours. If you deliver high-quality hosiery in excellent condition, find a partner who delivers high-quality shoes in the best possible condition. One who delivers poor quality goods will make your customers question any future referrals.
- Choose a partner who delivers the way you deliver. If your hosiery is always delivered on time, choose a partner who delivers their shoes on time, every time. One who is always late delivering goods and service will frustrate your clients, too, and cast a pall on your business as well as theirs.
- Find a strategic partner who values and treats customers the same way you treat them. If your customer service and communication are top notch, find a strategic partner who treats customers with the same level of respect and appreciation. If they don’t treat their own customers well, they aren’t very likely to treat yours much better.
Strategic partnerships can be a dream when you’re on the same wavelength – or they can be a nightmare when the other business underperforms, underwhelms, or inadvertently insults shared clients. Like it not, they’re a reflection on your business, so choose yours carefully and both businesses will reap the rewards.