Strategic Alliance

Guide to Generating Strategic Alliances

Identifying your strategy is the first step toward success
By Constance Gustke

Strategic alliances are a quick way to help a small business grow beyond its known sphere. By leveraging an alliance with a key customer or even a competitor, you can jumpstart any area of your business. They are usually formed so that you can:

1. Gain access to new markets.
2. Develop new products or skills.
3. Respond to changing markets quickly.
4. Reduce risks and costs.

Action Steps

The best contacts and resources to help you get it done

Define your alliance vision There are many reasons for choosing a strategic partner, such as sharing product expertise, management acumen and marketplace dominance. By first defining your need, you can zero in on the right partners.

I recommend:  Find out more about how strategic alliances work by checking out AllianceStrategy.com or Corporate-Partnering.com.

Do your homework on potential partners There are many factors to consider when sizing up partners. Look for similar cultures, communication styles, business ethics, positive customer feedback, and reporting practices. Go after brand leaders to add immediate panache and value to your company, as well as entrée into new markets and strategies Also, make sure the company is profitable.

I recommend:  You can identify potential partners by industry at Hoovers. A discussion board at AllianceTalk.com shares information on prospective partners.Join BusinessPartners.com to see and be seen as a potential partner.

Use matchmakers Matchmakers can help you narrow down your short list, scrutinize candidates, and forge an alliance that works.

I recommend:  Find matchmakers and consultants at PartneringIntelligence.com, Rigsbee.com, and VantagePartners.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• Networking is a key factor in attracting partners. It's also an opportunity to discuss with others the kind of company you want to partner with.
• If collaborating with others isn't your forte, avoid alliances.
• Remember that a well-set strategy drives the process.