As a small business there is a limit to what you can achieve on your own. Competing with bigger and more established companies can be extremely tough as they have more resources and skills. Forming strategic partnerships with other small businesses can help you gain competitive advantage and realize your growth potential faster. It can also give you easier access to your target market and equip you with capabilities you would not have had on your own.
Take for instance a construction company and an interior decoration outfit. As actors in the same industry they can have an agreement in place that allows them to recommend each other’s services as first option to their clientele thus increasing their reach and sales revenue.
If your business is considering a partnership, ask yourself the following questions:
• Do you have similar or the same values?
• Are you confident in the other company’s products and services?
• Are your products and/or services competing in any way?
• Are you comfortable with their customer service policy and customer complaint system?
Strategic benefits have to be mutually beneficial to the parties engaging in it. The popular saying two heads are better than one applies to business as it applies to relationships.
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