Some prerequisites before initiating a strategic business partnership.
Important steps businesses should take before initiating a strategic business partnership.
A strategic business partnership is often a crucial factor for success in business. This becomes even more critical for small businesses that are dependent on these types of associations simply because they don’t have all the resources necessary to effectively drive business.
Typically, a strategic partnership is accomplished when two companies that are running short of funds join hands to complement each other and reach target markets, jointly accomplishing their business objectives. Even before a business starts working on the proposal, it needs to carefully research the types of entities it wants as its partners. Once it has completed the filtering and reached the qualifications, it can proceed with submitting the proposal to the prospective business partner.
Important Steps to Propose a Strategic Partnership to a Business Partner
Let’s look at some important steps that a business owner must address when considering submitting a proposal to a potential business partner as part of a strategic partnership:
It is important to create a detailed plan that will cover important aspects on how the alliance will benefit both businesses. If your business is smaller in size compared to the prospective partner, then make sure that the plan is in favor of the other party as well so they are attracted to the plan. While preparing the plan, make sure a lot of research is put into it, and the plan should look realistic.
Talk to the decision-maker
If you are expecting a quicker turnaround, then it is better to speak to the actual decision-maker in the prospective company Speaking to other people in the organization may be a waste of time and cause no small amount of confusion when it comes to reaching the end goal.
Don’t jump the gun
It is important not to begin discussing the context of the matter as soon as you get a chance to meet the decision-maker. Focus on building a strong relationship with the decision-maker. If you jump the gun, it might not be fruitful for a healthy association between the two companies. Start building rapport. Find common ground between the two of you. You might be excited to talk about your proposal but just not so fast.
While presenting the idea behind a strategic partnership, it is important that you focus on the value proposition that the partnership will bring to the other company. The focus of the proposal should be on the benefits that your prospective partner will receive.
Be a good listener
This seems to be a statement that needs no repeating, but it is equally important to listen to your potential business partner’s plans and goals. If he or she is not sold on your idea, let the person do the talking and allow him or her to share his or her thoughts. This can become a strong foundation for the strategic business partnership to develop and grow.
As the name indicates, strategic business partnerships are “strategic” in nature, meaning it is well thought out and developed beforehand. The true success of such an association depends on various factors including:
- Sharing of the same ideology
- Having complementary products or services
- Focusing on the same target market
- Lack of resources in one of the entities
More than just two companies joining hands, a strategic business partnership is a collaboration of two thought processes and finding a balance between making two different companies work together in a cohesive manner to reach a mutual goal.