Insights

3 Benefits Of Creating Strategic Partnerships In Business

Tuesday 2 November 2021

Strategic partnerships are invaluable to entrepreneurs. I’m particularly passionate about this topic because they’ve helped Gary and I get to where we are today.

A strategic partnership is a close working relationship formed between two companies that is of mutual benefit; some of them happen quite naturally over a period of time and some are intentionally created.

In this article, we’re going to discuss what exactly makes a good partnership, and share three of the major benefits that come from finding the right partnership for you. 

These include:

1) Performance

2) Efficiency savings

3) Trust

Tune in to episode 24 of our podcast, “Extraordinary Entrepreneurs Together” to hear Gary and I sharing our ideas.

 

Who makes a good strategic partner?

Your choice of strategic partner depends on the type of business you are in and the support you need. You want it to be mutually beneficial. A strategic partner might include a solicitor, accountant or someone from HR.

You might also form a partnership with a contractor, some of whom will be part of the scaling up and scaling down process in business, but sometimes you will want to keep these partnerships for the long term. In many ways, some of these contractors are as important as an employee, and you can develop a really great ongoing relationship with the right ones.

A strategic partner might also be from an associate company such as a supplier. Perhaps you are addressing the same market but offering different services (so there’s no conflict of interest).

One of the best ways to find new strategic partnerships is through referrals from people whom you trust. At EHE Capital, Gary and I are always looking to share our contacts to help entrepreneurs drive business forward.

My personal rule in any strategic partnership is that there is no referral fee; I want people to be certain that I’ve referred them for the right reasons.

 

Person-centred relationships

Business is never about the company; it is always about the person or the people behind the company. It’s about relationships. If you are working alongside a really good CEO of an organisation, you’ll want to stay with that CEO; but if you have a good relationship with an employee and that employee leaves and offers the same or similar service elsewhere, you are more likely to remain loyal to that individual than their original employer.

In this way, business isn’t so much about the company, but the relationships you form with the individuals who work there.

For example, we have a really good strategic partnership with Jon Davage, Head of Corporate at Bermans law firm (you can hear more about how a good lawyer can help save your company millions on episode 21 of our podcast).

We were first introduced to Jon when I was running a previous business, Cake Solutions. He was a big part of the acquisition process in 2017. I have no hesitation in recommending Jon’s services if I can see opportunities where he can help.

 

Performance

We have a great relationship with Jon (and he has a great team); I know when I recommend him the job will be done well.

Often people who you have been referred to will go above and beyond expectation and do a better job for you than if you had come to them cold (a standard transactional relationship).

Gary summed it up perfectly in the podcast:

Gary: “I’ve got 20 to 30 companies that I’ve worked with for more than 20 years because I trust the people. I find that most people who are recommended tend to be quite like the person who referred them, so you already know they have good values, which saves you a lot of time, especially when you are building a new company.”

 

Efficiency savings

Gary: “Once you’ve built that trust and support for somebody and you know you’ll do the same, you can pick up the phone any time you’ve got a challenge and they’ll give you support free of charge.”

Finding someone in business who can send clients to you and promote your services has huge benefits and, as Gary explained, this includes saving time and money.

 

Trust

If you are looking to employ a new member of staff, you are also saving money by not having to go to a headhunter or recruiter. If someone you trust can recommend someone they trust to fill a vacancy, it’s always worth having a conversation. A personal recommendation ticks a lot of boxes; interviews tend to be shorter and more informed, and as mentioned earlier, the recommended candidate is likely to have similar values to the person you already trust.

 

The way forward

Build good, strong strategic partnerships with people and it will pay dividends for you both.

Now that Gary and I have more than 20 years in business, anyone we work with benefits from our experience and the contacts we trust and rely on. 

If you’re committed to creating extraordinary results in your business, I’d love to talk to you about the EHE community and how we can help you to achieve high velocity growth. Email me at guy@ehe.capital.

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