Why Collaboration Is an Easier Route to Small Business Growth

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In a world where social media and product association are rampant, small businesses know thereā€™s great strength in numbers. Business owners benefit considerably when they collaborate with other entrepreneurs toĀ build brandingĀ and ultimately thrive together.

The Competitive Advantage of Collaboration

There are costs associated with any venture, but when you team up with a company that provides goods or services that you donā€™t, you significantly reduce the time and money you put into a new channel. Another word for collaboration isĀ barteringĀ —Ā both businesses provide expertise and mutually beneficial services, strengthening each otherĀ in doing so.
The more businesses you partner with, the larger your potential client base grows and the greater the demand for your product becomes. Whether youā€™re an e-commerce site or a brick and mortar,Ā by barteringĀ you gain an advantageĀ on those who arenā€™t partnering up.

Ā Finding the Right Partner

To ensure youā€™re collaborating with a ā€œmergerā€ rather than a ā€œmoocherā€ and to safeguard yourself fromĀ the biggest partnership pitfalls, ask yourself the following questions before entering an agreement:

  • Can their industry or sector accommodate the needs of my company?
  • Is this partnership professionally or personally driven?
  • What am I committing to this partnership?
  • What are my goals and objectives for this partnership?
  • Specifically (and with as much detail as possible), how will the two businesses collaborate?
  • What data, intellectual property, patents, and secured information can be shared/obtained while collaborating?
  • What is the ROI of any funds allocated to this partnership?
  • What is my business NOT offering that this potential partner IS offering?

While professional collaboration may be attractive, if the data doesnā€™t back the decision, itā€™s safer to go it alone or look for other partnership opportunities.

Keep It Personal, Keep it Local

Small businesses may aim for global expansion, but attention should focus locally (or at least on a localized market) in the early stages. A business that offers a physical product the local community needs —Ā which is generally why the product is offered in the first place —Ā should buy local andĀ establish a local entrepreneurial groupĀ that meets regularly. These groups spark innovation, improve marketing strategy, and increase community interest in small business ventures, which equals higher profits.
Most of all, keep it personal. Itā€™s your business and your livelihood at stake. If you have doubts about collaboration, get a professional opinion. If you canā€™t get one, walk away. Better to err on the side of caution than risk an ill-informed partnership.

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