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5 Reasons why business alliances are so important

Posted 22 Nov '16

Partners, COI’s, alliances, business bud’s, fellow crazy people… Whatever you want to call them, one thing is for sure, having friends in business is crucial for growth and development.

5 Reasons why business alliances are so important

1. Referrals

There isn’t a cheaper, better qualified lead than a referral from a trusted friend or partner. A study shows that 74% of consumer’s main point of influence when buying is through word of mouth​ (Source)​. Having a friend, family, client or COI recommended the business they are purchasing from removes much of the vetting process and allows you to get down to business quickly.

2. Sharing Resources

Small businesses may have limited capital to spare when starting out or in the first couple years in getting the business off the ground. Having alliances in the same life cycle as your business and sharing common resources will allow you to be able to provide clients with a great experience while keeping overheads low. For example, a shared office space between an accountant and a financial planner or a naturopath and an acupuncturist can save on rent and also create the basis for easy referrals (refer to Point 1).

3. Expanded Service Offering

Business alliances create the opportunity to expand your service offering and ultimately provide your customers with more value. They can also allow you to enter new markets that may have been unattainable or difficult to breakthrough without the support. A common one in our industry is alliances between accountants and financial planners; but don’t be afraid to break the mould, think outside the box, challenge the norm etc etc and partner with a complementary service offering that no one else is doing!

4. Joint Ventures / Projects

Joint ventures are another way to offer added value to your clients. They differ from expanding your service offering as they are one off projects that can relate to a marketing campaign you have in place or a once off service to create exclusivity. Holding a joint seminar, create a new product that is available for a limited time, offering a deal or discount that involves both businesses are some examples of this one-off value offering solutions.

5. Like-minded Support

The world of small business can sometimes be lonely if you are starting out on your own, having like-minded business friends to share in your successes and bounce ideas off when you want to improve your services can be a great way to making the journey exciting and rewarding!

At the end of the day, building business alliances is an affordable and easy way to start out and grow your base.  Sometimes a little daunting but once you get amongst it and reap the rewards, you will never look back!

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