Benefits of Collaboration with an External Business Partner
What Level Of Expertise Can You Get For Your Budget?
In smaller companies, however good you are, there will be areas where you don’t have top quality expertise or sufficient experience. Rather than struggle, why not buy in the specialist knowledge that you need?
Efficiency: Using an expert for a few hours a month can be far more cost-effective than recruiting a full time employee on a high income.
There are additional benefits of working with external business partners who specialise in sharing their skills and knowledge. Often they are networking in a similar industry and can introduce you to potential suppliers or clients whilst also promoting your products or services to others.
A business mentor who has experience of start-ups and scale-up strategy will cut through the learning curves and help you benefit from the hard work of previous business owners on your path to success. This kind of expertise can shorten your lead-time to market new products so that revenues streams begin sooner.
Depending on your priorities and the partner(s) you choose, there may be opportunities for new markets, introductions to potential investors and cost-saving practices.
Synergy: Finding and working with the Right Partner & Using Their Expertise for Best Results
You need a partner with similar values of how a business should be run and how your company should be positioned. For example, are you looking ten years ahead or do you want to make a ‘quick buck’? Are you aiming to achieve global sales or to build a strong local presence?
External partners may open your eyes to new ideas and opportunities for your business. They may see your business differently from the outside, questioning efficient practices and cost-effectiveness of products or services, and conducting risk analysis.
The partnership has to be understood as long-term for maximum effectiveness. It’s a big step so there has to be trust from the beginning of the relationship. Key members of the business should all be on board with the collaboration. The partner may need to make some management decisions without the constant need for approval. Of course, communications are paramount so that all are aware, as with any management decision, and current information must be made available.
Motivation: It’s important that when your business is successful, your partner(s) share the rewards for their contribution.
Just like when a footballer scores a goal and the whole team celebrates and shares the glory. It takes teamwork and good leadership to be successful.
You may also be interested in our post about the value which Non-Executive Directors can bring to a smaller business.