When you are an up-and-coming company, investing time and effort into strategic partnerships will help you achieve the level of success you want. I have been working on forming this special type of alliance for my own company since I started it in 2004, and it has only served me well. If you are a new entrepreneur, you might be wondering what a strategic partnership actually is, why it’s important and how to form one. This is one of my areas of expertise that I hope to simplify for you.
What They Are
A strategic partnership is an alliance you form with a bigger, more established organization. If you are new to a specific field – that is online payments in my case – you need a big brother of sorts to help you out. As the new kid on the block, you might not have the experience, money, reputation or know-how to really carve out a niche for your company; a strategic partner can help you achieve this.
Why They Are Important
Strategic partnerships are important for a host of reasons, but I will cover only the top three:
- Money. As a newbie, you might not have all the money you need to get where you want to go with your company. Sure, you could seek outside investors, but you’ll spend more time convincing them of why to invest than you would in making your product worthy of investing. A strategic partner has the money, but don’t make this the only reason for forming your relationship.
- Reputation. A bigger organization has a more established reputation, as well as the credibility to help you out. Your company might not employ as many experts as would a bigger company, so this is another driving force behind seeking a strategic partner.
- Expertise. An organization with a lot of knowledge of the field and the requisite skills will be a really big asset to your company. If you sell educational software, try to partner with teacher and educator associations to find your way into schools.