Whether it is through the impact of social media or the increasing efficacy of crowdfunding, the power of collaboration is evident. Smart entrepreneurs and business owners are well aware of the advantages of collaboration, especially for expanding their businesses.
Collaboration Provides Competitive Advantage
Business expansion and new ventures are almost always capital intensive. However, by collaborating with an entity that provides services that you don’t, or has certain capabilities that your company currently does not, you can considerably reduce the time and money associated with the expansion. This competitive advantage is something every business owner should take full advantage of.
Collaboration is a form of bartering. Two businesses provide services and expertise that are mutually beneficial. Your clientele will grow as you partner with more businesses. Such benefits of bartering will not only ease your expansion but also give you a competitive advantage.
Finding the Right Collaborator
It’s crucial that you find the right partner for your expansion. The caliber of your collaborator can mean the difference between your successful expansion and a failed attempt to grow your business. Before you enter into an agreement, keep the following questions in mind to avoid some major partnership pitfalls:
- Can your potential partner’s industry accommodate your company’s needs?
- Is this collaboration driven personally or professionally?
- What are you and your company committing to the partnership?
- What are your aims and objectives for the collaboration?
- What are the details regarding how the partnering entities will collaborate?
- Will there be any sharing of patents, data, secured information or intellect property during the collaboration?
- What is the ROI of your investment (if any) in the partnership?
- Is there anything that the potential partner is offering that your business is not?
These questions (and their answers of course) will help you collaborate with great success, helping you expand your business much more easily.
The benefits of collaboration for growing your business encourage smart entrepreneurs across the world to partner up during expansion. It helps them market themselves better, and also improves product quality.
Fatima Mansoor is a writer at Aepiphanni, a small business operations and strategy consultancy that exists to help small business owners CREATE | DESIGN | BUILD extraordinary businesses. She is a freelance blogger, specializing in business & entrepreneurship, digital marketing, and health & fitness. Her focus is on creating compelling web content for small and medium businesses form diverse industries. She mostly writes for entrepreneurs and marketing agencies across the US, Australia and UK.
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