No business is an island. Here are seven tips to help you develop strategic alliances that deliver the goods, rather than turning out to be full of hollow and unfulfilled promises.
A strategic alliance is basically a relationship between two complementary businesses that, hopefully, leads to benefits for both.
That's the ideal scene. But like any type of business partnership, there are traps to avoid in order to ensure your strategic alliances build on your current success.
- Ensure Your Alliance Partners Are As Attractive As You Are
When someone approaches you to form an alliance it's because they find you attractive. That's great for the ego, but the truth is, they see profitable possibilities for themselves in the alliance. You need to make sure they are just as attractive to you, with equal opportunities flowing your way.
- Discuss The Benefits; Face Your Fears
If you feel that an alliance with a particular organisation would be mutually beneficial, don't be afraid to ask.
Have a polite, but no holds barred, meeting in which you discuss all the benefits you see in working together, and also lay on the table any fears about what could possibly go wrong. Consider punctuality, communication, financial and personality issues. Having the necessary constructive conversations to get all these out in the open right at the start is essential, and will help clear up any potential misconceptions.
- Do A Reference Check
Seek out the opinions of others who've had business relationships with your potential alliance partner. How did it work? Were they reliable? Did they have integrity in their dealings?
- Define The Responsibilities
Clarify what each of you is willing to put into your project, and the specific roles you'll each be responsible for. This input can be in the form of money, hours, equipment, staff, administration and planning.
- Put Everything In Writing
Never assume anything has been agreed without written confirmation. As well as having a detailed initial agreement, write a quick email after each meeting to confirm what was discussed and any decisions made. This will make sure you and your alliance partner are still on the same page.
- Keep In Touch
Have regular meetings to see how the alliance is going and handle any questions, problems and misunderstandings (even if they seem trivial). In other words, keep the business relationship clean, and don't let uncertainties fester into upsets.
- Have A Trial Period And An Exit Clause
Not all alliances will work. A trial period allows both parties to enter into an alliance more confidently. It's comforting to know that it's not set in stone and that there are clear agreements in place for ending the arrangement elegantly and with no hard feelings.
Finally, don't let fear stop you seeking alliances. If you feel that an alliance with an organisation would be mutually beneficial, don't be afraid to ask. Prepare an outline of what you have to offer, be it a product or service, then seek a meeting and go for it!