Image by: SalFalko
By Michael Sterling
A successful businessman will agree that when you use other companies to help build your growth, you are creating an opportunity for more success. Since the beginning of time, company owners have cut deals with other businesses in hopes that returns might increase and most of the time, they do.
Businesses have opportunities to use each other to help stay afloat. Especially during this economic time, CEOs will never say no to free promotion, however it is a two way street. In order to receive, you must give just as much in return. This is the beauty of a partnership.
The smartest thing to do is to think outside the box when you are deciding whether you should partner up with another business in any fashion. How it will it benefit you? Is it certain to bring you returns? Would customers be turned off by the partnership?
This is one of the most popular business partnerships there is, because it is benefiting both parties. It is when you and another business promote each other separately to reach more customers. For example, a restaurant can team up with a movie theater by offering 15% off coupons to the theater, while the movie theater will return the favor by offering 10% off coupons for the restaurant. Each of their customers will have a bigger reason to visit the other business. It’s a win-win.
Giant corporations have teamed with small businesses as well. ABN Save, a digital coupon company that has been mentioned in Forbes magazine and many others, teamed up with giant companies like Office Depot, Wyndham Hotel Group, and Hertz Rental Car. ABN Save offers their members discounts of up to 25% off from these huge companies. The result for both parties was a rise in customer loyalty. Within a year these corporations saw a 10% rise in online coupon purchases. It’s a perfect partnership.
When you are considering cross promotion with other businesses, it’s important that you choose the right type of company. Don’t team up with a company that offers the same service you do – that’s suicide. Instead, choose a business whose service works hand in hand with yours. Free promotion is free business.
Teaming Up To Save Money
This tactic is getting more and more popular lately. It can be an investment, depending on how you work the strategy. Consider office sharing, bills sharing, program sharing, and all in between. If you have a business that requires the collaboration of other fields like graphic designers or cash loan companies, it could be beneficial to meet on the same playing field.
By sharing the same office space with your partnering company, you will save tons of money on programs and system purchases. Not to mention, the cross promotion will only attract more customers to both parties whenever possible. Having a partner whose company frequently depends on you (and you to them) will create more growth since there will be a bigger need for the other’s success.
Track The Relationship’s Effectiveness
Something that can happen when you are partnering with other businesses is that your involvement can be forgotten in the mix of things. It is important to keep track every week or month to be sure that the other company is staying true to their word. It happens more often than you think. Send an employee from time to time to check up.
Another thing to keep track of is the before and after returns. Sometimes, a company that you thought would compliment you actually can do the opposite. You can start to see a decline in your revenue which should lead you to consider that perhaps the partnership might not be doing anything good for you. Don’t be a sucker.