How Collaborations With Other Companies Could Help Grow Your Business

When many people think about business ownership, they often consider a situation in which the owner of the business is on his or her own, trying to make the company work. Collaboration, however, is a critical part of today’s business landscape. On a personal level, we look out for our friends and neighbors, and the same can be true in the business world. There are a variety of ways for small-business owners to join forces, allowing them to exchange ideas, inspire product development, and grow their revenues.

Networking Promotes Learning and Inspiring

The most basic type of business collaboration is networking—both in-person and online. Networking groups, websites, and forums can help you as an owner learn how other owners are running their companies. Collaborating owners often share tips on marketing, sales, accounting, human resources, and even getting access to necessary capital. In addition to the practical knowledge that is available, networking groups can also be sources of support and inspiration. Seeing your colleagues and friends be successful can inspire you to take proactive steps in growing your business.

Increased Buying Power

In many industries, larger companies get much better prices from wholesalers, distributors, and other entities than small businesses often do. Small businesses, however, can work together to set up purchasing cooperatives which can help level the playing field. In addition to the direct business-related advantages, these types of cooperatives can also be useful for small businesses in providing their employees with affordable health insurance and other benefits that are generally cheaper on a larger scale.

Give Co-Opetition a Chance

We all know that certain business sectors can be highly competitive, and in general, competition is not a bad thing. Business collaborations, however, can lead to an entirely different concept known as “co-opetition.” Co-opetition refers to the synergy that can be created when two or more complementary businesses work together to give their customers access to a wider range of products and services than a single company could offer alone.

In order to make co-opetition work, you need to choose your collaboration partners wisely. For example, if you own a nail shop, you might consider a cross-promotion arrangement with a nearby hair salon or massage therapy business. Your arrangement could be as simple as leaving business cards or brochures near the checkout of each business, or you could offer discounts to customers who frequent all of the involved establishments.

Collaborative Referrals

Word-of-mouth marketing is one of the most critical components of any small business’s growth strategy. When customers have good things to say about your business, your popularity is likely to spread quickly. With this in mind, you can set up referral collaborations within your community of small-business owners. If one of your customers asks you about a product or service that you do not currently offer, you can refer the customer to a company within your collaborative circle that does offer it. By doing so, you can help your customers increase their trust in you and your business.

Contact a Naperville Business Collaboration Attorney

A good business collaboration does not usually just fall into place; it requires the right businesses and intentional planning. With this in mind, it is a good idea to work closely with an experienced DuPage County business lawyer as you consider a collaboration with other businesses. Call 630-756-1160 for a confidential consultation at the Gierach Law Firm today.

Sources:

MasterCard

The Balance – Small Business