Benefits of Developing Partnerships
“Two heads are better than one.” The old adage is true. Entrepreneurs have known this to be a truth for years thus the reason why strategic partnerships are so commonly used in business today. Partnerships are a voluntary collaborative agreement between two or more parties in which all participants agree to work together to achieve a common purpose. Together they undertake a specific task and share risks, responsibilities, resources, competencies and benefits.
According to PowerLinx, “Strategic partnerships are increasingly becoming a vital element of businesses’ corporate growth strategies with executives setting aside 20 percent of their assets or more to developing and maintaining partnerships. In the globalizing economy, strategic partnerships are helping businesses pool knowledge resources, diversify their product lines and more.” Let’s take a closer look at the ultimate benefits of securing a partnership for your growing company.
- Expand Your Company’s Reach – Not only can partnering with another company or field associated with your business garner more customers, it can physically broaden your reach. Geographic expansion and increased revenue channels are distinct benefits of strategic business partnerships.
- Increased Revenue – By aligning resources and extending the customer base, many businesses will find that they will increase their revenue. In fact, it is one of the main reasons businesses create a strategic partnership. Increased revenue is viewed as a primary advantage of successful partnerships by 66 percent of senior executives.
- Sharing Resources – Partnerships can pool resources for marketing, sales, or even technology investments. Resources may also come in the form of employees with extensive expertise in a particular area. These shared resources can then cut down on overall costs of the business and reduce duplication of services.
- Stability – Long term brand awareness and stability is a major benefit for finding a company to partner with. Building a positive reputation can be a critical part of creating a partnership.