One of the best ways to add more value to your business and fight stagnation is to adopt a strategic partnership.

Whether you’re looking to expand your sales force, develop new products and services, or build a new client base, this kind of partnership may be exactly what you need.

The basics

There are a few key differences between strategic partnerships and other relationships you may have built through your business. To better understand what these alliances are, let’s first explore what they are not. To start, a strategic business partner is not a mentor. While a mentor offers guidance based on their many years of expertise, a partner is simply meant to complement your areas of weakness or offer their opinion on matters about your business. They may not necessarily be more experienced in your field, and they certainly are not there to provide counsel from a personal perspective. This partner is also not a savior for your business, nor are you a savior for theirs. A strategic partnership is most lucrative when both parties can contribute to its success. If one partner is not holding up their end of the bargain, both businesses run the risk of alienating customers and stakeholders and diminishing in value. In contrast, a strategic partnership is a mutually beneficial relationship where both businesses receive a competitive advantage, a costeffective way to increase your brand recognition and audience, and an opportunity to grow and develop new resources. The benefits of bringing on a strategic partner are virtually limitless, especially since the partnership can be tailored to the unique needs of both businesses. You just need to determine what will help you grow your business and what type of partnership will get you there.

Boost your value

You must consider every variable when selecting a strategic partnership, as nothing can survive in a vacuum—including your business. Once you find the right partner, the process to get started will often involve a fair amount of planning and negotiation on both parties’ parts. The first step is to outline the biggest areas of opportunity in which your business is lacking. For example, you might be one of many businesses in your area offering the same kind of service with very few differentiating factors. Or you may have a lackluster online presence compared to your competitors. Determine where your weaknesses are so you can find the right partner to help address them. Next, think about what kind of partnership can provide the most value for the least amount of money. Perhaps you’re a commercial real estate agent looking to expand into luxury spaces. High-end clients come with lofty expectations, so you could consider partnering with a luxury design firm that specializes in commercial design. In doing so, both of you would double your potential value: you would assist clients by finding them the perfect space for their organization, and your partner would provide top-notch design services after the transaction.

Develop your resources

For businesses both big and small, improving resources can come with a significant amount of financial burden. Incorporating new tools and training into your organization will always have cost considerations, which is why finding a strategic partner can be so beneficial— especially one who provides resources or shares a portion of the cost in areas like marketing and client acquisition. Some partnerships can provide resources that supplement your business practices and develop your employees, while others can provide ones that serve your clients. Let’s say you own an accounting firm with a growing book of business and are finding it difficult to manage client data and ensure its security while adding new clients to your database. Instead of fighting back against the big players in the online bookkeeping game, you could work with them. Gusto, for example, offers a special partnership program for accountants, making it a solid partner. Its online platform helps thousands of businesses with payroll processing, insurance, and other benefits, and its accountant program includes added incentives, such as perks for adding new clients and access to an advisory board of other CPAs. Partnerships like this can be huge for smaller businesses with limited resources.

Grow your audience

An expanded audience is often a natural benefit of strategic partnerships, as shown in the previous examples. By partnering with another business, you’ll gain access to each other’s clients, so it’s important to make sure your interests align. However, you can also grow your audience by finding partners that have success in areas you lack, such as social media marketing. This is a common pain point of small businesses that can prevent them from growing at scale. A strategic partner well versed in digital marketing creation could be a big help if you’re looking to reach a wider audience with your content. For example, imagine you’re a residential real estate agent targeting first-time homebuyers. Most first-time buyers explore their options online via platforms like Zillow and even Instagram and TikTok—sometimes long before they’re ready to purchase. Bringing on a local photography or videography business as a partner can allow you to create attractive and engaging digital content you can share across your social media pages, enticing potential buyers in your target market. It’s a win-win for everyone: your partner helps feed your leads pipeline while you help feed their portfolio.

Sustaining your partnership

The ultimate goal of a strategic partnership is to double the value, resources, and growth of both companies. However, not all partnerships are built to last. Be sure to outline the terms of your collaboration up front so both parties are clear on expectations, and don’t be afraid to keep your mutual agreement brief. This will help you avoid any potential long-term liability and allow you to test the waters with other partners if you’d like. No matter the type of partnership you enter into, you’ll want to make sure it’s sustainable for you and your partner. An equal playing field is essential; otherwise, the alliance can feel one-sided. You should create checkpoints, whether they’re weekly, monthly, or quarterly, to assess your goals and track progress. The reality is that, while a partnership might feel like a dream come true for your business, it will not run on autopilot. Like anything else, it will require frequent analysis to ensure it reaches its full potential. But when it does, you’ll get to enjoy all the sustained success and new possibilities that come along with it.