Why You Need A Strategic Business Alliance
As someone who has built businesses for the past 20 years, my #1 recommendation for business owners and freelancers is this:
Build Strategic Business Alliances.
Business owners are constantly seeking innovative ways to achieve growth and sustainability. Strategic business partnerships can increase your success rate, decrease your stress rate, and perhaps even get you some good friends along the way. But statistics show that only 57% of companies utilize this strategy for growth.
Lead Generation:
When you establish strategic alliances with other small businesses, you are no longer the only one generating leads. You suddenly have a team of people generating leads for each other increasing everyone’s pipeline. More leads will result in increased revenue for small businesses.
Cost Efficiency:
Collaborating with strategic partnerships can significantly reduce costs. For one, your marketing costs decrease because you no longer have to generate as many leads for yourself. Even though you may have a referral fee that you are paying to your partners, the cost per conversion is likely lower than other methods of marketing.
Market Expansion:
Expanding into new markets is a key benefit of strategic business alliances. Businesses that form alliances experience increased access to new audiences, giving them the opportunity to tap into previously untapped customer bases.
Risk Mitigation:
Small business owners who enter strategic alliances are better equipped to manage risks. Building a strong foundation within your strategic alliances can help you avoid or weather the ups and downs of entrepreneurship. Small business partnerships give you a supportive community, more leads, and reduced costs which reduces risk in business.
Enhanced Product or Service Portfolio:
Collaboration allows small business owners to enrich their product or service offerings. White labeling services within your small business network allows you to better serve your clients and customers. They get everything they want in one place, but you can focus on your area of expertise.
Access to Specialized Expertise:
Business alliances offer access to specialized expertise and knowledge. Instead of feeling like you have to keep learning new skills to keep up with the market, you create a network of vendors who fill in your gaps in knowledge. Engaging with them will increase your skills and knowledge.
Strategic business alliances are not just beneficial but can be transformational for small business owners. The majority of my businesses, I tried to grow alone. And the majority of them flopped because of it. Creating strategic small business alliances took me from 2-3 leads per month to 10-15 leads per month. The cost of the referral fees is pennies compared to paid advertising or SEO efforts.
Now I get to use my position as a Fractional CMO to white label my small business partners’ goods and services so we all continue to grow.
Strategic business alliances have been one of my favorite things about being a business owner.
