You have a few options when it comes to scaling your business. Collaborating with other businesses, you may invest more in marketing, increase the number of products or services you offer. You could even persuade your existing customers to give you more of their disposable income.
What’s more, you know what? Any of those sales strategies could help you broaden your brand’s appeal. However, you should think about developing strategic relationships as another proven amplification strategy for your company.
Why collaborating with other businesses?
Take a step back before you get too excited about the hassle and price of legally partnering with another company. To partner with another company, you don’t have to exchange “I do” vows. In fact, collaborating with other groups does not usually necessitate lengthy contracts. You can often develop short-term (or micro-term) connections that benefit everyone.
What are some of the most important benefits of moving into the partnering zone? First, you’ll automatically present your brand to a new consumer segment. Second, by pooling online and offline marketing expenditures for tandem projects, you can save money on advertising. Oh, and don’t underestimate the benefit of leveraging the expertise of a high-performing company’s thought leaders.
What are the best ways to collaborate with other businesses?
Of course, being willing to collaborate is one thing. Another is figuring out how to partner in a way that makes sense for your team’s short- and long-term objectives. Examine some of the traditional and unique collaboration choices that have proven to be successful in the past.
Increase revenue by selling limited-edition items to the general market
Are you in the business of selling goods instead of providing services? Is your logo or brand image well-known, but you’re stuck since you’re a service provider and don’t know how to expand? Consider collaborating with other businesses to create unique, limited-edition merchandise. These mini-relationships will allow you to reach out to customers who enjoy being first in line. In the process, both your and your partner’s brands will gain additional exposure.
This isn’t a new practice, and it’s common in the apparel industry. Heineken, a beverage company, recently collaborated with clothes designer BAPE. Their collaboration resulted in a modest assortment of uniquely branded objects that were only offered in limited quantities at specified locations. The businesses were able to make a quick profit push by capitalizing on the hype surrounding the products’ scarcity.
Find a “power match” twin in a different industry.
LEGO. IKEA. In their respective markets, both brands are indisputably successful. Despite the fact that none of them required the other to generate additional revenue, they found common ground. How? Their collaborative BYGGLEK storage solution series mixes LEGO’s imagination with IKEA’s refined pragmatism.
What are the takeaways from IKEA and LEGO in terms of the value proposition? The capacity to market and reach is boosted by combining distinct brands with similar clout. Consider your company’s position in your industry. Is your company a market leader? Is it in the middle of the pack? Are you an up-and-comer who is just starting to make a name for yourself?
Be truthful. There is no such thing as a “bad” standing. Once you’ve figured out where your company belongs, look for businesses that are similar to yours in non-competing industries. By collaborating with other businesses, you may be able to take both of your companies to the next level.
Collaborate with a former competitor
Want to send a strong statement to the public that you’re confident in what you have to offer? Join forces with the opposition. This decision demonstrates your power, particularly if you operate in an industry where such a relationship is uncommon. Consider the following example: The Law Offices of Anidjar & Levine wanted to enter into mass torts, but they didn’t know how to reach out to potential clients from their Florida office. What is the solution? Form strategic alliances with other law firms across the country.
As founding partner Marc Anidjar points out, the move was far from traditional. “I always saw other attorneys as my adversaries,” he acknowledges. Nonetheless, his team took the decision to work only with lawyers they thought they could trust. Working with co-counsel in this capacity, he now describes it as a win-win-win situation for all parties involved. He does warn, however, that in order for this type of setup to function, common goals, responsibility, and backup preparation are required. You’ll be able to pivot if necessary without losing any ground.
Connect with a brand that your target audience already believes in
Kohl’s saw a drop in popularity among younger professional shoppers in 2018. Kohl’s teamed up with Popsugar, a popular internet business, and publisher, to boost the retailer’s Millennial street cred. Kohl’s altered its image as fresh and modern over the course of the two-year partnership. Popsugar gained more exposure and was able to develop original material for its websites at the same time.
Find out which entities that audience already trusts if you’re having problems entering into a specific market. Do you want to reach out to pet parents and persuade them to purchase your AI-enhanced vacuum? Join forces with a well-known name in the pet-parenting industry. Having problems establishing a foothold with Generation Z? Speak with a company that has built a name for itself. Just make sure you’re giving something back to avoid a one-sided partnership.
Boost your PR by having some fun and playing games
To last, a formal or informal commercial connection does not have to be long-term. Short-term, humor-based relationships can occasionally provide a brand lift and a slew of mentions.
Consider the fun Arby’s-Warby Parker April Fool’s joke from a few years ago. In order to demonstrate a lighter side, the companies sold extremely ludicrous products—onion ring monocles? While the witty advertisement may have come across as a bit of a joke, it paid off. Warby Parker’s limited-edition “Nice to Meat You” merchandise was quickly sold out, while Arby’s received much praise.
Partnering is, without a doubt, a serious business that should not be treated lightly. Nonetheless, don’t rule out the possibility of tickling people’s funny bones. Partnering with humor or in a gentle, lighthearted manner can accomplish wonders when done in good taste. It can also demonstrate to the rest of the world that you’re not all work and no play, which customers enjoy.
Don’t just enter into partnership; make sure they’re well-planned.
No questions asked, strategically with collaborating other businesses has tremendous benefits. Take the time upfront to set clear expectations and goals. You’ll be able to gain access to hitherto untapped audiences—and profits—in this manner.