5 Partnerships Entrepreneurs Should Consider to Help Them Achieve Their Vision

Partnerships offer opportunities that have a positive business impact

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Key Takeaways:

• Partnerships can take your business further, whether strategic or a joint venture.
• These partnerships only work when both partners are purposefully aligned with clear goals.
• Every potential partnership isn’t obvious – just look at GoPro and Red Bull.
• Partnerships encourage out-of-the-box and creative thinking.
• Some elements of success include clear communication and constructive conflict resolution.

As entrepreneurs, we should never underestimate the power of strategic partnerships, joint ventures, and other business collaborations. It’s all about leveraging ideas and resources to positively impact a growing business.

When times are tough, strategic partnerships can pave a path to success. And when these partnerships are well-aligned and executed properly, they can speed business growth and help us gain a competitive advantage.

We see examples of these partnerships in strategic brand alliances (think Apple and Nike). However, combining forces to achieve success for both businesses is just one type of partnership. Partnerships come in many forms. The key is in the word “alignment.” If both partners aren’t aligned on purpose, there will be no synergy; without synergy, you have conflict. Let’s talk about the partnerships entrepreneurs should create to move our businesses forward.

Types of Partnerships

1. Strategic partnerships

A strategic partnership is like a business friendship between entrepreneurs. It’s not about working together as much as a teamwork approach with a shared purpose and clear objectives.

In this type of partnership, each partner remains independent – you aren’t combining your companies – but you share objectives, values, and the desire to create a competitive advantage.

We can look at strategic partnerships as tactical alliances that involve a transfer of trust, and because businesses aren’t merged, there are few downsides. We can access each other’s capabilities and share expertise.

One successful strategic alliance is the co-branding of Coca-Cola and McDonald’s . These companies have been working together for more than 60 years, helping each other reach tremendous growth through a unified customer experience. This partnership has been successful because of shared values and strategic vision.

2. Joint ventures

Joint ventures are built when two entrepreneurs aim to achieve the same outcome and unify forces. You assume shared risks, which means there has to be trust and transparency.

Joint ventures are formed for business expansion, new product development, or moving into new markets. Our businesses can have strong potential for growth, but we need more resources. A joint venture can supply that.?

Again, the key to a joint venture is alignment. When both partners are aligned, there’s a free flow of ideas and shared expertise, which can also reduce costs.

3. Industry alliances

Industry alliances are formed to achieve both business goals and grow market sectors. Forming an industry alliance with those in the same industry as our business gives us a unified voice, increases networking opportunities, and offers the chance to contribute to and shape the future of our industry.

Industry alliances and the exchange of ideas also bring about innovation that can give us a competitive edge. Similar to strategic partnerships, one-to-one connections can offer new opportunities.

One example is the European Raw Materials Alliance , which aims to build resilience and autonomy for the EU’s value chains for rare earth and magnets. The alliance was also built to identify and break down barriers and find new opportunities.?

4. Supplier and distributor partnerships

This type of alliance is a vertical integration to ensure that in an all-stakeholder economy, our distributors and suppliers grow as we grow. A great partnership with suppliers and distributors lets us achieve more, faster. And there’s even a potential for financing.?

The key to these successful partnerships is the same as all others – choose suppliers that align with your values and purpose. You should understand each other’s needs, communicate well and use a feedback loop.

Before you start this kind of partnership, evaluate risk; the best advice to mitigate risk is to vet suppliers and distributors carefully and make sure your supplier base is diversified. Thorough due diligence is needed to select reliable and financially stable suppliers.?

5. Co-branding partnerships

Co-branding means combining your brand with another. This can be part of a strategic alliance. It’s a collaboration about brand visibility formed with another entrepreneur when you share the same types of clients.?

For example, Red Bull and GoPro teamed up. While their products differ, the person who buys them is not. This person likes an action-packed, adventurous lifestyle that can be powered by Red Bull and recorded with GoPro.

Look at others in your entrepreneur network for complementary brands in the same industry. Network at industry events or use social media or a search engine to find like-minded brands. To be successful with co-branding, there has to be trust between both partners, a clear understanding of the shared objectives, and careful planning.

Finding the Right Partners

Partnerships are about winning, which means setting clear goals and expectations about the responsibilities of each partner. This way, both partners come out winners. Trust between partners is paramount, but other important factors include:

• Effective communication and collaboration
• Regularly scheduled meetings with agendas that reinforce alignment.
• Goals, expectations, and honesty about what is and isn’t working.?
• Open conflict resolution

Legal and Financial Aspects

Even a joint partnership can exist under many different entities, so it’s important to get your attorney and accountant involved to discuss legal and financial implications before beginning any formal partnership.?

Maintaining Healthy Partnerships

Business partnerships can last as long as your business does if they are begun and nurtured properly. Everything begins with transparency, trust, and shared purpose and goals. You also must

• Recognize and respect each other’s strengths.
• Constructively navigate conflicts.
• Invest in building the relationship.
• Maintain clear roles and responsibilities.
• Have clear communication.
• Celebrate achievements!

Partnerships Are a Critical Part of Entrepreneurship

Partnerships of different kinds help us explore more opportunities, learn more, and achieve more. Carefully chosen partners can be with us from the beginning of our journey and last until the end. Collaboration fosters creativity, encourages out-of-the-box thinking that can tackle challenges, and adds to the resourcefulness and ingenuity that spells success.?

At the Profit Recipe, we’ll partner with you to understand and develop the adaptable leadership skills you need for success in today’s dynamic business environment and how to sell your vision for both team and partner buy-in.?

We’ve been there, done that, and learned valuable lessons that we’re eager to share. Join our community of entrepreneurs and share your experiences to help yourself and others navigate the purposeful leadership journey – you’ll probably find some strategic partners along the way.

We’re here for you and because of you. Let us support your entrepreneurial journey – schedule a call with one of our experts today or send us a message .

You can read the original article at https://theprofitrecipe.com/blog/partnerships