Establishing a working relationship with another business can be mutually beneficial
Collaborating with another business can be lucrative for your company by opening doors that would not have been available using any other option.
While it may seem atypical to partner with another enterprise, it’s becoming a key business model and there are numerous brands that could complement your company – namely businesses that are not direct competitors, function as vital channel partners, or others that could lure away your customers.
By collaborating with the right business partner, you can pool resources through co-investment, market development, rebates and incentives, and infrastructure improvements.
Whether it is co-selling with a partner in your business ecosystem, collaborating on a market development fund, or entering a temporary joint venture with a key brand in a new industry, there is no shortage of potential opportunities.
This is why you should consider collaborating with another business:
You can share investment costs
A key benefit of business partnering is co-investment.
With shared business objectives (such as to launch a particular product or enter a certain market), pooled resources in a market development fund enables you to maximize the investment by minimizing budget restrictions and resource limitations. Create incentives to ensure that you both achieve your sales and revenue objectives. Learn more about market development funds at https://www.workspan.com/market-development-funds-and-partner-funds-definition/.
You can grow your customer base
One of the most compelling reasons why collaboration with another business would suit your commercial interests is that it offers you the opportunity to expand your customer base.
This is because your partnering company will have a customer or client base of their own, which is likely different to yours. By partnering up, you can potentially gain access to this market without having to invest heavily in an outreach campaign, marketing or sales. In fact, your partner will likely sell on your behalf, meaning you won’t have any additional costs – at least upfront.
You can expand your brand identity into different markets
Another reason why partnering up with another business is worthy of your consideration is because it allows you to expand the reach of your brand identity.
Usually, expanding public knowledge of your brand takes time, effort, and a lot of money, requiring you to sell to new markets, invest heavily in targeted advertising and wait patiently for recognition.
However, by partnering up with a business in another market, you can gain instant access to a whole new set of people. Even if you don’t enjoy much initial success, it will allow you to spread the word about your brand and ensure a lot more people are familiar with it.
This is gold dust for your brand identity and can pay off handsomely in the long term.