Strategic Alliances: A great idea for growing your business
In its most basic definition in my world of business development, a strategic alliance is a partnership of two or more companies with a common goal centered around growth and development. You should consider forming or joining a strategic alliance if you are not currently able to meet the demands of a contract on your own.
Strategic alliances have many benefits for both the businesses involved AND for the corporations they are soliciting:
- Improved market reach
- Generation of additional revenue
- Development of new products, new markets and new skills
- Risk management
- Easier performance management
As you consider and develop a strategic alliance be sure to keep the following things in mind:
- Consider, outline and agree to an exit strategy before you sign on the dotted line.
- Create an official contract for the strategic alliance.
- Search for partners within and outside of your network and industry.
- Decide which company will be the lead for interactions with the customer.
- Clearly define the roles of the parties involved.
- Outline and agree to everyone’s expectations.
- Pick a partner with different strengths than yours.
- Define and agree to the market reach for the alliance: local, regional, national, international.
- Evaluate your cultural fit– do the parties all have the same core values?
- Establish performance metrics: Financial, strategic, operational.
Our corporate sponsors and corporate partners have told us that purchasing departments and contract officers prefer strategic alliances because they are efficient and because they offer creative and innovative solutions.
Need more info? Interested in looking for potential strategic alliance partners? We can connect you with other WBEs and guide you through the process. Get in touch.