The concept of Strategic Business Partnership has gained importance amongst small and mid-sized companies recently. When two companies involve in a mutually beneficial dealing for a stipulated time as a part of their corporate strategy, they are considered to be strategic business partners. The company to be chosen for partnering can be a supplier or a vendor or a consultant or an advertising agent.
This is a lot different from the traditional partnerships between companies. The partnering companies will not be entirely dependent on each other, but they only get involved in other’s business in specific ways. These partnerships concentrate more on business transformation rather than just a business transaction between two companies.Strategic alliances have proved to be stepping stones to success for many small and startup companies. By entering into this partnership, companies are mutually benefitted and add value to each others’ business directly or indirectly. Beyond these obvious advantages, other advantages of an SBP are as follows
1. Vendor Partnership:
- Through a strategic alliance with vendors or suppliers, a company can get exclusively tailored services that are suitable for their products style and customer needs which ultimately results in product enhancement.
- Can save the time and money on product research and development, as it will be taken care of strategic partner(vendor). This allows the small companies to focus more on the expansion of business.
- With increased product quality and a new line of products, there will be a definite increase in the sales and revenue.
- For a startup entrepreneur, outsourcing their accounting process is much simpler and cheaper rather than hiring accounting professionals and setting up a department for the same.
- Getting access to skilled resources on each niche field is much easier when there is a strategic alliance with another enterprise who are experts in their field.
- This is much suited for companies where 24*7 customer support is mandatory.
3. Business Consulting & Technology Partnership:
- Strategic Partnering is the ideal way for small business owners to make use experts’ knowledge on niche areas and technology of another company.
- Provides startups with clear guidance on trade tactics and strategy
- Through this partnerships, small companies can expand their product’s reach and gain new customer base beyond all geographical barriers.
At this point in the corporate world, business collaborations and team efforts are the key factors that determine the fate of every startup. Hence, finding the right partner opens up many doors of opportunities for small or startup companies.