A business strategic alliance is a partnership between two of more organisations to provide a product and/or service which one business alone could not offer. The business strategic alliance must benefit all parties equitably. Otherwise it will not be successful in the longer term. These alliances may take the form of a joint venture. However, they often do not extend to the formation of a new legal entity.
What are the benefits of forming a strategic alliance?
- Businesses are able to provide a unique offering.
- Risks associated with the new product or service are shared.
- It builds trust between the two parties.
- Each party can leverage the power of their networks to offer the product/service to a wider audience
The Unique Product or Service
Here are some real life examples that I’ve heard about recently:
Balloons and sweet treats gift
Kim Saunders, a balloon artist and Kerry Herbert, a baker offer birthday, anniversary and other celebration gifts together. Kerry’s tasty treats, such as cookies and homemade chocolates are placed inside Kim’s balloons for a lovely unique present. Contact them via their websites for more info on their brilliant gifts.
Yoga and mindfulness retreats
Francesca Turner is a yoga teacher and Lucy Woods is a mindfulness trainer. Together they offer a wonderfully relaxing and rejuvenating 4 hour workshop. Experience gentle yoga and mindfulness practice, not forgetting the delicious vegan treats. Contact Lucy on lucy@presenceofmind.life to book the next retreat on 4th April 2.30-6.30pm.
Financial planning for business owners
Makala Green, a financial adviser and Amrat Thorpe, an accountant are running a business finance seminar. This will help small business owners gain a better understanding of tax and financial planning. Register for this event on 27th February 2020 9.30-12.30.
Think laterally about how you could partner with someone in your network. Provide a different service or product that sets you apart from the competition.
Risk and reward
Forming a strategic alliance gives you someone else to bounce ideas around with. You can share the set up costs and support each other. Of course, we also have to share the profits but working with someone else can be fun and motivating. It spreads the planning and execution load as well.
Building trust
Building trust is a key part to gaining new customers. What better way to do that than by forming a partnership where you trust each other? That trust is infectious; it will spread to your clients who are much more likely to repeat buy, recommend and refer.
Leveraging your network
Let’s put our heads together and produce something new and different. So we can market it to a much larger audience. We leverage the power of our collective network.
What I am doing
I’m ALWAYS interested in strategic alliance opportunities. I am currently working with a photographer; we provide LinkedIn professional profiles and photos.
I’m planning to work with a financial adviser. We will provide financial workshops to mums starting up in business.
I’m working with a restaurant food supplier and a restaurant furniture supplier to help restaurants get busier.
Lastly, I’m hoping to work later this year on a book with a wildlife photographer.
The opportunities are limitless. Just open your eyes. Look for the connections that other people don’t immediately see.
Tell me what strategic alliances you are working on. I’ll help promote them.
Find out more about the other benefits of structured business networking.