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Howdy, Partner!

Nada Jones and Michelle Briody Bizbox.slate.com

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June 25, 2009

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Business Forecasting 2012

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“Great piece. There's perhaps an even more ...”

PAUL ROSENFELD

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No woman is an island. Still, when it comes to your own business, partnering with others can nonetheless be one of the most difficult decisions you have to make. No self-respecting entrepreneur wants to share the risks and rewards of his or her business with an outsider, no matter how much they could add to the bottom line. But in tough economic times, remaining competitive may depend on thoughtful and strategic partnerships.

As an entrepreneur, it is always important to find and focus on your niche, the one thing that you do better than anyone else. However, in times like these, it’s equally important to be flexible and diversified enough to satisfy changing customer demand. Being open to partnering with other small businesses can be a great way to diversify your offerings and increase revenue.

The right partnership can bring many benefits to your business, including:

Market Expansion. Your new partner can expose your product or service to a broader range of potential customers. You will, of course, be expected to do the same for them.

Cost Reduction. Partners can share expenses and pool resources, including everything from advertising to rent.

Product Diversification. When appropriate, a partner’s products may complement your own, and each of you can offer a broader range of product to your customers, extending the reach of your brand and increasing revenues.

However, if you decide to pursue a partnership, be sure you are partnering with businesses that share your ideology and customer demographic.

For example, a floral shop might consider partnering with businesses that cater to its same demographic and whose products could be sold in its shop or vice versa; some potential businesses would be a gift shop, an art gallery, a bakery, a book store, or a coffee house. By offering these other products, the floral shop would able to offer more to its customers, possibly share in the margin of these new products, and reduce its marketing expenses. And by placing flowers in other store fronts, the floral shop can gain more customers and increase its revenues and brand exposure as well.

When looking for a partner, be sure to ask yourself these following questions:

Do they share a similar customer demographic?

Can they offer strength in my weaker areas?

Will partnering with them expand my customer base and increase my revenues?

Is this partnership going to elevate my company’s brand?

Will this arrangement be short or long term?

Go forth from here and find your ideal partner(s) and tell us about it at nedandshell@nedandshell.com, or in the comments. We’d love to hear how you are making your business work. Check out nedandshell
for more useful articles for starting your own dream business.

Nada Jones and Michelle Briody are the authors of Sixteen Weeks to Your Dream Business, a guide for prospective women entrepreneurs. They blog at Sixteen Weeks To Your Dream Business.

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Nada Jones and Michelle Briody, Article, partner, michelle briody, risks, nada jones

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PAUL ROSENFELD 2 years 7 months and 19 days ago

Great piece. There's perhaps an even more important question that I've found determines the success or failure of any partnership - cultural fit. You could check the box on all the above questions but if both companies don't see things the same with treating employees or customers, then the partnership is doomed. While it's a soft and mushy topic, any small biz owner will know a like-minded soul when he/she seems them and the trick is to NOT ignore your instincts and walk away if the fit isn't there. Paul@fanminder.com