Business alliances - a strategy for small businesses growth

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Business alliances - a strategy for small businesses growth

business alliances are often overlooked or not given a lot of small business owners, but it can be vital in helping the company grow and prosper. Often, small businesses believe alliances are only for large companies. As a result, they do not explore and pursue them. However, they can be just as useful for small businesses as it is for large companies. If small business is serious about access to new markets, and take advantage of technology, and increasing profits by using shared resources, you should consider an alliance business.

It's no secret, and companies that can share resources to create more efficiency and become more profitable. Business alliances can increase synergies and reduce potential risks, while companies and allow to work together towards common goals as they maintain their individuality. There are several types of business alliances, each with their own unique characteristics.

now is the time to assess what your business brings to the table. What assets, whether tangible or intangible, not your business owns that when leveraged with another company can unlock greater potential for every business?

alliance opportunities can be developed with suppliers, customers, investors and complementary business, competitors and friendly. Some natural alliances games, while others require some creative thinking. We've listed the different types of alliances below, along with a description and example of each. When you read through them, think about how your business can create the benefits of a proposal to win with another company.

joint venture

The joint venture is a contractual arrangement where the establishment of a separate entity to carry on trade or business of its own, separate from the core business of the participating companies. Often companies come together to share knowledge, markets and money and profits. In some cases, it can be a large company decided to form a joint venture with a smaller business in order to quickly get significant intellectual property, technology, or resources otherwise difficult to obtain. Companies with similar products and services can also join forces to penetrate markets that will not or can not consider without investing a tremendous amount of resources. Chapter in the often inevitable because of the joint ventures generally have a limited life and purpose.

Example: I have developed a product but they have limited distribution base. Another company has a distribution system in place with a large market and want to expand your product offers the company. You set up a joint venture with another company to jointly promote the product. It's a win-win because you do not have to finance access to potential customers and other company costs for the expansion of its value and provide the product to the existing distribution base without the need to finance research and development costs for the new product. It will sign a contract detailing aspects of the agreement.

strategic alliance

strategic alliance is generally an arrangement where it is does not create a separate entity. Participants involved in joint activities, but do not create an entity that would carry on the trade or business of its own. It may Strategic Alliance Partners provides resources such as products and distribution channels, and manufacturing capabilities, capital equipment, knowledge and experience, or intellectual property. Each party in the coalition maintains autonomy.

Example: Business management consultant wants to expand its services. He currently provides training, marketing, financial and operational consulting. I have noticed an increased demand for human resources consulting and diversity of its customers. He currently has no desire to hire additional staff with degrees and certificates required to provide these services. It is seeking a strategic alliance with human resources and diversity consulting firm. It approved a new company to work with his company when the opportunity arose for her services, and the percentage of the revenue generated from the services that will be returned to his company provided.

partnership

partnership is a legal agreement between two parties where both parties agree on the sharing of profits and losses of joint work with no projected end date.

Example: The first function is to sell advertising circulars and produce a unique voucher to promote a variety of small businesses to the residential complex project company was large print Law month. The company sought a partnership with a small printing company. The company has been printing experience but the print size is limited. It does not require the purchase of equipment that the printer did not have, but believes that there is a need for. A contract was signed the founding of the new company. The cost of equipment has been divided between the two entities. Send the product circular coupon all its work for this new project at a large discount. It was split profits from the new project between the circular coupon company and printing. Originally kept all their business separate from the new business.

MARKETING ALLIANCE

has led this alliance is the agreement that includes two or more companies to share the costs and resources needed to strengthen both companies within the group. Target markets of the companies within the alliance usually of a similar nature. Alliance can be formal or informal agreement.

Example: A group of restaurants owned and operated by a local band together to form an alliance marketing. Alliance, similar groups across the country, and enhance the uniqueness of the cuisine in an attempt to stand out against the national chains. Group pools its resources to run ads and direct mail production guide to strengthen those lists, while offering discounts. They had to pay upfront fees and then several hundred dollars contribute gift certificates every three months. These certificates are sold online at a discount to help fund their marketing efforts. Donate gift certificates help to keep the cost down for the participating restaurants.

COLLABORATION

and there is cooperation is when you come two or more companies together to share resources to create a more efficient, such as the exchange of personnel and equipment and the cost of shipping, rent, products and aspects of cooperation and what are the overall for the periods specified time and resources.

Example: As a small business you may have a hard time throwing first-class holiday party for your employees. You want to show them just how much they are appreciated, but the economy is tight and the company's funds are even more stringent. The pooling of resources to have a party with an integrated company, and saves money for both companies and is likely to bear fruit in new job opportunities and networks.

alliances Management

Each company must bring a group the balance of power of the Alliance, but there are other considerations as well. Must alliance management to ensure that they contribute to the success of each company. Listed below are some things that you should consider for the production of a successful alliance:

must be 1. alliances with the decision maker. You must have the support and commitment from the employer and not just a manager.

2. Communication is the key element. Clearly communicate the goals and objectives of the Alliance at the beginning.

3. Develop standards will be measured against the alliance. How will you determine the performance of each of the companies measure.

4. allocating appropriate resources to this alliance. Do not get half way through the project before determining the appropriate resources have been allocated for this project.

5. Ensure that all personnel involved are committed to the success of the alliance. You need not just a select few people in the purchase of all concerned.

6. details the responsibilities of each of the participating companies. Be clear on what are the prospects for each of the companies in this alliance.

7. Just like everything, nothing is perfect. Be willing to make changes if something does not work.

8. Be committed to and focused on the benefits of the alliance instead of harassment might cause the alliance.

Each party must benefit from the alliance in order to be successful. Otherwise, such as marriage, and the relationship go from honeymoon to divorce court quickly and all parties will suffer.

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