First things first… what is a strategic alliance?
A strategic alliance, quite simply, is a win/win arrangement between two or more people; it is mutually beneficial to all parties concerned. These partnerships can be referred to by numerous names – strategic alliances, joint ventures, joint alliances. Regardless of what you call them, they should all be based on relationship building.
When thinking about who you can partner with to help grow your small business, begin by knowing who your ideal customer is; who is your target market? Now, who else do you know who also provides services or products to this market? (Apart from your competitors!) Then it’s just a matter of coming up with some ideas to share your marketing strategies.
There are countless ways you can work with your strategic alliance partners to help each other’s businesses. These include:
- Promote yourselves jointly to the marketplace via joint seminars or other co-operative promotions;
- Join complimentary products or services together and offer them as a package.
- Write articles for each other’s newsletter.
- Arrange for aligned firms to write to their clients endorsing your business and making their clients a special offer, and you can do the same for them.
- Piggy back a special offer inside their mail-outs to their clients.
- Arrange for them to incorporate your products or services into their sales process e.g. if you’re an accountant, you might actively recommend a solicitor as part of the service you provide.
- Arrange for links to and from each other’s web sites.
- Create a “how to” booklet and label it, “Created especially for clients of XYZ & Co.” XYZ & Co. can then offer it as a gift to their clients.
- Develop a formalised alliance, or an affiliate, where each party receives an affiliate fee or a spotter’s fee for referring business your way.
- Look at producing joint or even group offers, brochures, trade stands.
- Don’t limit yourself with geographical boundaries – look at National and International alliances too.
An ideal example of a group alliance is where several businesses within the wedding industry – a wedding boutique, make-up artist, function centre, photographer, limousine service and florist – form an alliance and combine their marketing efforts.
It’s important that you make sure you know who and what you’re recommending. I will often recommend products, services, events and software, but only if I truly believe in them and the company or owner. If something seems like a good idea but you haven’t actually tried it for yourself, make sure you say so. Remember, your own reputation is on the line here.
In negotiating your strategic alliances, remember that this is a relationship and not a transaction; it’s supposed to be win/win for each party involved, including your and their customers. Focus on how, together, you can help your customers by providing value-added services or products. If this is your focus, your business will, in turn, profit financially too.
No matter how well your business is doing right now – no matter what industry you are in; whether your business is online or offline – you can apply this concept to your business.
Donna-Marie Coggins is an author and business owner, providing guidance, resources and support to small and micro-businesses. For tips and resources on running a small business and your free guide, “60 Free And Low-Cost Ways To Get Your Business Noticed”, go to Donna-MarieCoggins.com