Alliances

We’ve covered balance within your business for three weeks now, and you may be wondering if this is even germane to your business. Let me assure you: it is. An ugly bottom line one month is proof you need to keep that tension between growth and profitability on a more even keel.

Here are some tips to protect your business viability:

·        Pay attention to the golden rule of keeping a cushion of 6-12 months of cash in the bank.

·        Regularly set goals for growth, but examine your resources for that growth.

·        Maintain communication and ties with existing clients.

·        Establish strategic partnerships.

·        Look for referrals.

I’d like to focus on strategic partnerships. You have an opportunity to meet a lot of other business owners within the Chamber. Take advantage of those opportunities. Look for businesses you can partner with to maximize growth for each of you. How do you do that?

Choose a business which appeals to your current customers. Ask your current clients where they shop, who they like, what they recommend.

Choose a business with different amenities than those you offer. A potential partner may have more display space where you could also be featured, but you may have a stronger email base, in which you could promote their services. See how that works?

Think about how you could help another business. You have to bring something to the table! What do you have to offer someone who is also needing to grow? When you aren’t in competition for the same product or service, how could you be generous in helping a colleague?

Get personal. Local business partnerships offer an opportunity to be creative with promos and sales. When you work together, both can profit. Set up a “Shop at these three stores today and earn 20% off your total purchases.”

Get really deep on the topic by leveraging your business in more formally, with joint ventures or equity-strategic alliances. Remember how you are constantly looking for that ideal customer? Start looking for an ideal partner. You’re not marrying another business, but you do want to take time to look at the field and a compatible business. Take time getting to know possible candidates. Do you have something to offer? Does the other business have attractive qualities? Do you bring different skill sets or resources to the table? Focus on how you can help each other, and then experiment with a joint venture.

Talk to folks at the Chamber office, who know us all pretty well. They may have suggestions to help you grow as well as grow that bottom line. Reaching out is what the Chamber is all about, so take advantage of your membership!