The benefits of business alliances

As business’ owners, we should be looking for a competitive advantage, and one of the most effective ones I know is by entering into a business alliance.

By Maria Mila, L&M Naples MultiServices Consulting Agency,

As business’ owners, we should be looking for a competitive advantage, and one of the most effective ones I know is by entering into a business alliance.

A business alliance is also known as a strategic alliance, which is a formal relationship between two or more organizations with similar objectives.

Textbook business alliance calls for joint ventures, franchising, cross-licensing, cross-marketing, and also co-manufacturing. All the co’s mentioned before will enable a company to reach its potential faster than pursuing an objective alone.

It is very important to understand that a business alliance will expand your target market and this is one of the most effective ways of growing your company. By penetrating a new market using the new partner’s knowledge and expertise give you the advantage of using the strategies and distribution channels they have already developed.

A business alliance will give you access to broader marketing channels, which is needed to succeed and unless you partner with a company that has already cultivated this channel it will cost you time and money to develop.

Now the million-dollar question: – Which business will make a good ally?

Just think about this; if the world’s biggest brands benefit from alliances, small companies can, too. Once you decide to join forces with another business to grow you might want to use your imagination, and here are some examples of strategic alliances we can use in our own town.

An Acupuncturist and a Spa. A Coffee Shop and a bookstore. A tax preparer and a business consultant. A retirement community with a Home Health Agency. A laundromat and an Alterations person. A Nursery and a Landscaping company.

Now to begin determining what is the right strategic alliance, one must define what the target market is.

Thinking broadly about the audience will not help, it is not enough to say our target market is small businesses in our city. You have to redefine your search and break it down into specific categories.

For example, a way to obtain more information is scrutinizing our current customers to find out why they buy from you and what they buy from other businesses as well. Using this research method will bring to the table the common characteristics of the current customers, and will also provide a wide range of possible customers that could also benefit from your product or service.

And just like in businesses we can also use this strategy in our personal life to find allies that can support our personal goals, fitness goals and provide mental health support.

If this article brought some light to your projects or gave you something to think about, my mission been accomplished. “See” you soon!

About Maria:  She is a native of Canelones, Uruguay, a mother, an administrative professional and a Life coach completing her training as a Neurocoach.

Her almost 20 years of experience in personnel management, financial services and human resources make her an expert in development and training of new companies.

Her passion for serving others is being used in her ongoing advocacy campaign for family members and caregivers of people on the autism spectrum, with mental health or other related disorders. This mother of two boys is a natural motivator and believes that a smile and a positive attitude can change the world.

His favorite quote is:

“Our greatest weakness lies in giving up. The surest way to succeed is to always try one more time.”

-Thomas A. Edison

Related posts