| As the economic climate remains grim, have you | | | | long-term. |
| noticed that more people are jumping onto the | | | | If you are a small business, partnering with a bigger |
| 'relationship' bandwagon? This recently came to my | | | | company is essential for long-term success. The |
| attention while meeting with a new company to | | | | advantage you provide for the bigger company |
| discuss how our businesses could help each other. All | | | | comes down to the fact that you don't have the big |
| they talked about was their business, and after | | | | budget, and have a very out-of-the-box, even |
| about an hour they finally asked; "Well what do you | | | | grassroots approach. They can help you get the |
| do?" That was a wakeup call for me. | | | | increased visibility you need for your target market, |
| It's great to know that many people are reaching out | | | | while leveraging your team for resources they may |
| to work with you, and connecting with other | | | | not have in house. If you partner with a mid-large |
| businesses is important to many businesses. | | | | size company, their reputation and status will help |
| However, I wonder if the economy was in a better | | | | you push your business forward. In both cases, your |
| state, would people still be willing to work together? | | | | goal should be to provide the larger company with |
| Once we are out of the recession, will those same | | | | creative ideas on ways to cut costs and be more |
| businesses still see the value in forming relationships | | | | efficient with their time and resources. Give them a |
| and networking with other companies? | | | | chance to see your passion for the industry and your |
| It seems that everyone is using the word | | | | ability to look past the economic climate as you reach |
| relationship, (the "R" word) these days, but I don't | | | | out to your core customers in a way that is most |
| think many businesses really get it. Building a | | | | desirable to them. You need to work on convincing |
| relationship with other businesses isn't simply about | | | | them that working with you will help cut costs and |
| saying it, but that there is real, genuine effort behind | | | | provide value for their organization. |
| it. Relationships that are built on mutual agreements, | | | | If you are the mid- to large-sized company, you have |
| understanding and an honest connection that benefits | | | | the upper hand because of your resources, |
| both parties involved are the ones that survive | | | | reputation and brand name. Working with a small |
| through both bad and good economic times. Nurturing | | | | business can help you gain a fresh perspective and |
| a relationship takes time, and it doesn't happen with | | | | insight on finding quality leads instead of quantity, and |
| just one phone call or one meeting. | | | | fine-tuning your business operations so that you are |
| Another situation where I witnessed the "R" word | | | | using a more personalized approach. In most cases, a |
| phenomena was during an event to showcase | | | | small business has fewer clients than a mid to |
| businesses in the event industry. One of the vendors | | | | large-sized business, has smaller funds, and may be |
| there was clearly upset and after about 15 minutes | | | | much more focused on nurturing intimate relationships |
| of ranting and complaining, she says, "We need to | | | | with your target market. This is an excellent |
| work together and build a strong relationship." It left | | | | opportunity to learn about your target customers |
| me wondering if she really meant it, or was just | | | | from the perspective of a business who truly |
| saying it for the sake of 'relationship building.' | | | | understands their clients on a personal level. |
| The reason my business has been so successful so | | | | To Partner or Not to Partner? |
| far is because of the sold business relationships and | | | | Here are some more tips when considering if you |
| connections I've made with other vendors and | | | | should or shouldn't build a relationship with another |
| business owners. While I do agree that we should be | | | | company: |
| working together, pooling our resources and | | | | 1. Do some research. Learn as much as possible |
| collaborating on projects and ideas, I also think it's | | | | about the company you are interested in working |
| important to team up with companies that aren't just | | | | with, or any companies that are pursuing you for a |
| looking for a quick fix. Companies that are looking for | | | | partnership. Find out what their goals are, and what |
| a partnership through the long haul will be the ones | | | | type of track record they have with customers and |
| that truly are the best fit for your business. If you | | | | clients. Remember that any business that has a poor |
| are the type of business owner who keeps hearing | | | | track record will reflect negatively on your own |
| the word 'relationship', you need to step back and | | | | business if you chose to partner with them. |
| take a real look into the other company's approach | | | | 2. Prioritize your goals. Define exactly what you hope |
| and genuineness behind it. You must also share some | | | | to accomplish by working with this other business, |
| of the responsibility of this relationship. Ask yourself if | | | | and what they may want from you. Make sure they |
| you feel a solid connection and are truly engaged | | | | truly are the right fit for your company, because you |
| with the other business owner, and interested in | | | | will need to work on aligning your goals and |
| what they do. If you are not, this won't be a | | | | objectives with theirs in order for the partnership to |
| relationship that will be worth pursuing for the | | | | be a successful one. |
| long-term. | | | | 3. Develop co branded events. Joining forces with |
| Business relationships must be seen as long-term | | | | another business to organize events and initiate |
| investments. Both parties must be willing to invest | | | | event marketing strategies is an excellent way to |
| the time and effort into promoting and helping the | | | | promote both companies and expand. There's |
| other business as needed, and sometimes, the other | | | | definitely strength in numbers, so consider ways in |
| company may simply not be the right fit. If the | | | | which you can develop a strategy for event |
| company's objectives and goals are similar to your | | | | promotions. |
| own, there's a good chance that the relationship will | | | | 4. Make sure the other business is ready to actively |
| benefit both parties. | | | | promote your business. Both businesses must have a |
| A few important questions to ask include:o Do you | | | | clear understanding about expectations of the |
| have similar target markets?o Will the relationship be | | | | relationship or you won't be able to reap the benefits |
| short or long-term?o How can both businesses | | | | of the partnership. Map out the details in writing if |
| benefit from working together?o What are your | | | | you need to as an informal agreement so you are |
| short and long-term goals?o Are expectations for the | | | | both clear on what you both need and want. |
| relationship clear? | | | | 5. Make sure you have the resources to manage the |
| Importance of Co-Branding and Partnerships | | | | process internally. You may need to restructure |
| Co-branding in this economy increases your chance of | | | | some parts of your management program or |
| business success because it prompts both parties to | | | | marketing strategy to accommodate for the |
| work collaboratively in order to reach their goals. A | | | | partnership. Make sure your company is prepared for |
| 2005 survey of 154 senior marketing executives | | | | the change, and restructure parts of the organization |
| underscored the findings of the McKinsey study | | | | as needed. |
| "Turning Adversity into Advantage: Does Proactive | | | | Partnerships can be very beneficial during an |
| Marketing during a Recession Pay Off?"that was | | | | economic downturn, and you'll need a strategy to |
| published in the International Journal for Research in | | | | initiate and maintain the relationship for the long-term. |
| Marketing. The report pointed out that companies | | | | Take the initiative to seek out business relationship |
| who took the initiative to develop solid marketing | | | | that are built with solid goals and are truly genuine. |
| strategies had a significant competitive advantage. | | | | Doing so will increase your chances of business |
| Co-branding is just one proactive marketing strategy | | | | success and provide you with much more leverage |
| that could help your business succeed for the | | | | and resources in this competitive marketplace. |