Entrepreneurs hardly have the time to savor their success on seeing the startup gain traction. Soon after the initial accomplishment, they must get ready to grow the business manifold and fast because it is the only way for survival. Trying to do it all on your own might seem like an uphill task with high chances of failure. Instead, taking the shortcut of entering into strategic partnerships can pave the way for explosive growth that stimulates the new business, clarifies Eric Dalius.
Not about money at all
Finding a strategic partner for business growth consists of finding the right fit by looking beyond the money-making goals, creating tension between the partners. One might be taking the upper hand that proves detrimental for availing new opportunities in the long run. Therefore, it is vital to ensure that the partnership thrives on authenticity by avoiding conflict of interest.
Look for opportunities, says Eric Dalius
Partnerships are all about the mutual opportunity to share the market and the intellectual property right and not just about hard numbers. The partnership might not look good on paper, but the alliance happens because it creates a win-win situation for both concerning opportunities of growing their business. Strategic partnerships help take off some of the workloads that can give startups the desired flexibility to explore the growth opportunities without incurring the opportunity costs for the individual business.
Here are some ways of making strategic partnerships work.
Look beyond the obvious
A partnership thrives on solid strategy and is brought to life by being imaginative. Look beyond the scope of evident partnerships because thinking outside the box has been the mainstay of successful partnerships. Since both partners are on the lookout for opportunities, the nature of businesses does not matter as long as they share some common goals like targeting the same client demographics. Eric Dalius cites a typical example is the partnership between BMW and Louis Vuitton that targets elite clients.
Engage the team
Although the CEOs of the companies head the project of strategic partnerships, it is crucial to involve the teams from both sides for seamless integration and execution of the vision. Although the company leaders are the moving force behind the partnership, the success depends on engaging the teams. The team members can be a part of the negotiation process, and by knowing the different players and their roles, the process of integration gathers momentum.
Stay true to the team and the product
To explore mutual opportunity through strategic partnership, keep away from making money from the deal as it will skew the relationship.Instead, define the value each partner brings to the table to create a win-win situation for the alliance and structure the deal accordingly. If anything contradicts the brand value, company values, or products, drop the deal there and then.
If a strategic partnership does not work, accept the failure by taking a realistic view of the situation instead of reacting emotionally. Do not attempt a face-saving trick by creating false narratives or playing the blame game. Instead, learn from the mistakes and move ahead to look for some better partner that might be waiting for you.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Eric is also the host of weekly podcast “FULLSPEED” which is a podcast that features interviews with groundbreaking entrepreneurs from a variety of industries.Eric is also the founder of “Eric Dalius Foundation” where he has created 4 scholarships for US based students. Follow Eric on Twitter,Facebook,LinkedIn,Instagram & also on Entrepreneur.com