How to grow and where to focus now vs. later
A strategic alliance is an agreement between companies to maintain independence while working together on a mutually beneficial project. Often, these companies are referred to as partners.
When going into business with another company, you must determine if you feel that you can trust each other and if they conduct business in a manner that is acceptable to you. These partners can offer knowledge or even sales assistance to your company.
Keys to Successful Strategic Alliances:
- Determine the “why”: Why do you want to work together?
- Evaluate the partner: Do your research to determine if they’re a good fit. You want to take your time and not rush the process.
- Establish goals and objectives: Without these clear rules, one company could take advantage of another.
- Roles and responsibilities: Keeping a clear definition of each party’s roles will help create a good working relationship.
- Develop good communication: Communicating across various cultures and time zones can be challenging, but putting in the work to have the best communication is vital.
- Conflict resolution: As with your organization, determine a conflict-resolution process that both parties agree on.
- Build rapport/trust: Mutual respect and good personal relationships require effort and time to be built.
- Demonstrate commitment: Be supportive of your partner and strive to make an impact for both companies.
- Patience: This doesn’t happen overnight. It takes time to form and maintain.
- Formalize: Having a written document that acts as an outline and protects your company is crucial.
How do you determine where to focus on the immediate future?
Countries such as those in the UK or the EU may be more attractive in the immediate future. They have fewer barriers to entry and offer a more attractive market than those of South America.
What countries are better off waiting and entering later?
Countries like China are more difficult and the barriers to entry are much higher. While they may seem enticing at first, they are more often among the last to enter.
It’s important to note that this isn’t cookie cutter for every industry. Your own due diligence is required to ensure you’re making the right decision for your business.
For more insight into growing your business, check out our other blogs and the Innovation Junkies Podcast!