Relationship goal – 5 Mistakes to Avoid in Building Profitable Partnership
Let no one tell you otherwise partnerships are a powerful tool to grow any business. Having the right partnership will surely give your business the kind of boost it requires. Aside from that! some other benefits that come from partnering are fresh ideas, a new audience, and sometimes, a new product depending on the type of partnership you’re into.
“If you want to go far, go alone but if you want to make an impact go with a friend”
As a small business owner, you aim at climbing to the top of your trench. If that’s true – success can never be accidental – you would need as much help you can ever find. Building a partnership becomes your best move, though the whole process can be somewhat very technical at some level. Creating a profitable and sustainable partnership requires a lot of mutual understanding between both parties involved in the partnership and significant effort from both parties to make the relationship work.
As an entrepreneur, I know how much you need these partners, for your small business growth. Before now, I am certain you might have even tried your hands on numerous kinds of strategy to forge profitable partnerships, and many times the story is just the same.
Looking at the millions of ways most entrepreneurs employ in finding the right partner for their small business goals. I came to the realization that there are some very common mistakes most entrepreneurs make trying to forge a partnership with other agencies.
In the next few paragraphs of this post, I will take you through these mistakes made by entrepreneurs and how best to avoid them while taking advantage of this powerful opportunity to partner with others.
Mistakes to Avoid When Building a Profitable Partnership
- They get too concerned about what the profit margin would be on their angle.
Too many entrepreneurs think about what they need rather than what they can offer their partners. Your potential partners want value from you – not to be “sold”. Before you reach out to a potential partner, get crystal clear about what’s in it for THEM.
Are you an established expert? Do you have a responsive list? Can you introduce them to a new audience segment? Do you have expertise in an area they don’t? What need do they have that you can fill? Your goal is to create an opportunity for both partners to get value from the relationship. Don’t even think about contacting a potential partner until you can easily and succinctly convey your value.
- They view other agencies as competitors instead of collaborators.
When you begin to see other businesses as a competitor out to get your piece of the pie, you can’t build the relationships you need. Instead, think of other business owners as partners and collaborators in serving your audience. Focus on the ways you are different than the other businesses in your niche. When you look for partners, look for people who serve your audience in a different way. These businesses aren’t direct competition.
How will your work complement their work and vice versa? You’re joining forces to provide more value to your audience creates more opportunities for both of your businesses and a higher quality of service to those you work with. It’s a win-win for everyone.
- They make their pitch before getting on the prospect’s radar.
Pitching someone cold rarely works. Make a connection with them socially. People are much more responsive to someone they know. Start by connecting through social media or getting an introduction from a mutual friend. Then spend some time getting to know them and learning about what they need. Be gracious about offering your support for seemingly small things without expecting anything in return. Once you get on a potential partner’s radar, he or she is far more receptive to your partnership offer.
- Expecting their partner to do the heavy lifting.
Many entrepreneurs make this mistake a lot. This is a partnership; you’re not hiring an employee. Plan ahead to pull your own weight. Don’t forget this person you about to forge a relationship with also has his own needs and his own goals for the project. Make sure you agree on a division of labor. Successful partnerships have written agreements stating roles, responsibilities, and division of money made by the project. Aim to over-deliver, just like you do with your clients.
- Disappearing after the first collaboration.
Don’t drop the ball after your first collaboration. Choosing your partnership strategically is an extremely powerful way to build your business very quickly. But don’t shoot yourself in the foot before you get started. Practice developing the skills you need by reaching out to people who already have a relationship with you rather than pitching cold.
With that being said on the many pitfalls to avoid finding the right Partners, let’s look at ways an entrepreneur can develop a profitable partnership where everyone wins (both the partner and the business owner).
How do you develop a Profitable Partnerships to grow your Business?
We can all relate to the fact that; the benefits that come from partnering for a project are tremendous. Not just for the thought that it can thus expose our work to new audiences increasing our reach quicker than we may ever on our own. A good number of people in your partner’s network can seamlessly be synchronized into your network.
The returns on investment (ROI) of growing your audience equals increased profits. Another huge benefit of partnering is sharing workload and sharing expenses. Working together creates room for increased productivity and creativity without increasing your workload. The saying is true – when you choose the right partner, you get a chance to learn from your peers.
Everyone can join a team but not everyone can make a good teammate. In searching for a partner look for someone with a skill set that complements yours. Ideally, a good partner should share a similar vision and look at business the same way you do.
When you find this person, you’re just a step away from reaching your goal. But before I let you set sail to let’s take a quick view at some of the best ways you can develop the right kind of partnership to grow your business
- Prepare the table – make your offer attractive
As you get ready to build your own partnership, you should start by making your goals and aims for the business clear upfront. For every entrepreneur, there are always open offers and opportunities to collaborate with others, but the main deal is your offer has to be mutually beneficial.
Be forthright with what you can offer and what you may expect. The partnership may turn sour if you aren’t clear up-front about what your expertise or strength is. This will lead us to the next strategy
- Take a view at your expertise and strengths.
Developing a Profitable Partnership is mainly centered on what you’re bringing to the table most time. Think about the amount of time, energy, and resource you would be willing to devote to this project. And how well can you follow through? How will your reputation in the marketplace speak for you?
- Everyone can join a team not everyone would make a good teammate
Being picky in this regard wouldn’t be a bad attitude to go by. Searching for the right partner, anyone may seem right for the job but your radar should be focused on the one whose skills set complement yours or whose work you admire.
If the right person isn’t already in your network, chances are, you know someone who knows that person. Activate the power of your network to your advantage. Reach out to anyone in your reach who may be of help in this regard. Ask a friend, family, neighbors, high school alumni associations, college alumni associations, your gym, and Meet-up groups or sports teams. If you find someone, do well to invite them to lunch or coffee to talk, get to know each other.
- Make the offer when the odds are right
It may take a lot to find the right partner, but if you find one, don’t hesitate to make your offer. Be specific about your offering and the results you’re looking to create for you both and how you see the collaboration developing.
Be honest about what you expect to gain. An open-minded conversation sparks the beginning of a great partnership. The advantages of finding the right partner are tremendous. The boost in your business reach and exposure to new markets make it worth your sweat.
Don’t be among the few people who start a conversation, with a great idea and a brilliant brainstorming session but don’t follow-through. If you don’t act on your ideas and move the partnership forward, it’s just a waste of time. Ideas are great, but the action is what gets you to your goals. If you make a commitment, get it done, on time, as you agreed. You’ll build greater trust this way and open the door for additional opportunities down the line.
Stay open to opportunities. Don’t rule out your “competitors”. Honor your commitments. In doing so you’ll create a business that is more profitable, more successful, and more fulfilling than you could have ever imagined. As the progress of your business rest on your ability to forge and manage productive partnerships
In a little way, I want to hope that this little piece would be of immense benefit to your growth as an entrepreneur. And if it has, I encourage you to share your thoughts and reactions with us in the comment section