Getting the Cooperative Advantage

Many solo entrepreneurs take advantage of cooperative partnerships and joint ventures in growing their business, including myself. I've discovered that it makes more sense to selectively join forces with others, than ignore each other or compete - in some cases, with people who would be direct competitors, otherwise.

There are a number of reasons why a solo-preneur would do this. It is a way to develop new markets, and generate revenue. You are naturally stronger with cooperation than competition. You can usually reach a broader audience, cross pollinate each other's customers and prospects, and access contacts and resources known previously only to the other's business or industry. Both sides can now offer improved or combined solutions, that could not have delivered alone.


The only way that a cooperative partnership like this can work is if both sides benefit.

Partnering is an attractive flexible way for companies to develop new markets and additional revenue. Working together, partners can combine strengths in critical areas. Often a larger well-known vendor provides small vendors with credibility, while the smaller vendor contributes specific industry knowledge unknown to the larger vendor. Synergistic relationships come in all shapes and sizes, but the best relationships and partnerships are the ones that benefit everyone.

How do you make sure this is the case?

First, you have to have clear and well defined expectations. You have to understand each other's business model, strength, weaknesses and customers. This is very often an ongoing learning process. You'll need to find out what they offer their customers, and what they can offer you. It helps if you have a goal in advance, and understand what you want to accomplish. This is important so that neither partner wastes a lot of time figuring out if there is a good fit.

What kind of partnerships can work?

Partners can introduce each other to each other's contacts, either individually or in a newsletter format. They might consider giving access to their list but this is risky - people take very seriously who they want to hear from, and might not appreciate being "sold out." So, it is better, in your newsletter, to talk about the other company - an endorsement or review of what they do. You might also consider letting your partners write guest articles now and then, as this builds trust, and you do the same for their list.

You very often can bundle each others products and services. For example, a copy writer's product might be the right fit for the product of a graphic artist, and they can be packaged as one, with shared revenues.

You might consider advertising exchanges on your web site, with preferred placement on your site and theirs for each other's banner ad. This makes sense if there is some relationship between the two businesses because it exposes both side's audience to new opportunities, products and services.

Or, it might be that the best partnership for you is less tangible, and involves the exchange of information, technology or insight. Some of my best partners (and, you see I use the word loosely) are those who I simply communicate with on a routine basis about our businesses. This provides new perspective, fresh ideas, and alternative approaches to both parties, and is an invaluable way of keeping your business from becoming stale. But it only happens with openness and trust - you have to know that you can rely on this other person to provide you with good advice and honor your confidences, and vice versa.

Relationship networking and strategic partnering works, if you keep your eyes and mind open. You have to qualify every opportunity, and cut your losses and close doors quickly when it doesn't work. Some people approach this in the sense that you should "keep your friends close but your enemies closer," when in fact, you are "known by the company you keep." You have to be VERY choosy who you connect with this way. Not every relationship like this can work - but when it does, you truly are going to both be stronger for it.


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Eileen Parzek is an award winning graphic designer and writer providing digital and print graphic design and web design services. Always found at the intersection of information, creativity and technology, her business, Business Design Studio (www.businessdesignstudio.com) helps small businesses make a big impression, increase their reach and grow.

May be republished with full bio and credit link to http://www.businessdesignstudio.com