Build an Alliance to Gain Customers
It is a great idea to build a strategic alliance with another company. The reason it is such a great idea is because with two companies joining as an alliance you may bring new customers to your company. If you jump into the market alone it could take years before you find loyal customers. With an alliance it will more likely only take a few months. You cannot lose.
Before you select an alliance make sure you do a background check on the businesses reputation. You do not want to skip this portion of the research as if you choose a company with a horrible reputation, it will bring your business down.
Choose the right type of business to align yourself with. A company that has the type of clients you need, capabilities you need and/or want to learn from, technology, etc. Look for a business partner for the long haul. Ask yourself where the two of you see yourselves in five years. You also need to have something to offer your potential alliance as well in order for this team to work.
To make a deal with an alliance make sure you are prepared. Have all of the pro’s and con’s written down so the two of you can discuss them. Figure out how you both want to handle the situation as well as goals, obligations, etc. Make sure you both agree on the strategies now and long-term otherwise the alliance will fail. You want to make sure that all of the key managers are on board with this idea.
Once you go to draw up the final paperwork, make sure that the proper people are at this meeting. You want a rep from every important department at this meeting. Once everything is discussed you both can have your lawyers draw up the paperwork.
Now if you walk into this meeting and it is only the lawyer that represents the business and a business-development person at the meeting this is an enormous warning sign.
Once you do build a relationship with a partner, you should see results. If you notice that you are not benefiting from any type of profit, you should break away the partnership and continue on your own.
