It Takes Two - How to Cultivate Profits

"Cross promoting with other businesses can give youthe ability to handle a larger "job" than your company.
a significant advantage over the competition, withJoining forces with another business on a project
many benefits and cost savings." -Heidi Richards-makes you look good to the customer. You become
More and more competition in the marketplace isthe hero. In 1999, I had the opportunity to provide all
making it necessary for companies to find creativethe decorations for a HUGE Floral Fair in Miami, Florida.
ways to connect with customers and prospects, toI knew my small company alone could not handle all
enhance brand identity and attract top-notchthe business. So I called several other florists in the
employees. In order to enhance competitiveness incommunity whom I admired and who did similar work.
today's marketplace, more and more companies areI subcontracted them to do portions of the project
forming strategic alliances. Strategic alliances canand get a piece of the action. Because these were
maximize your position in the marketplace. When youfloral importers we were serving, the other florists
learn how to leverage partnerships you increase yourhad the opportunity to network with and find new
market share. It is also a very smart way to grow asuppliers of product. It was easy to convince them
small business. Cross promoting with other businessesto participate. It was such a success, that it has been
can give you a significant advantage over thean ongoing project for several of the shops over the
competition with many benefits and cost savings.years.
A strategic alliance is based on an arrangementThink about the many businesses that are natural
between two companies to combine resource thatpartners. In the real estate field, realtors partner with
will help both gain a greater share of the market.one another when selling a house. Florists partner
They are often formed when one business alone iswith caterers, photographers and others in the event
unable to fill the gap in serving the needs of theindustry. Automobile insurance companies often
marketplace. Forming strategic alliances can save timepartner with auto repair companies to insure their
and boost productivity. It enables companies to becustomers get the best service at a fair price.
more efficient and concentrate on the core strengthsIn an issue of Entrepreneur Magazine, I read about a
in developing their products and services. Thesecoffee company in New Jersey who became the
alliances can be formal (partnership agreement is putultimate collaborator. The coffeehouse carries works
in writing) or informal (a handshake is all that isfrom a local art gallery, has a reciprocal agreement
necessary to "seal the deal").with a local community theatre to offer significant
There are several ways you can collaborate withdiscounts to their patrons, cross promotes with a
another business or individual to increase revenue,local music store, book store, cigar shop, as well as
traffic, and even expertise to your business whichmany local nonprofits.
ultimately will increase the value to the end-userMy flower shop has partnered with masseuses,
(customer).welcome-to-the-neighborhood companies, travel
Find the Right Partnersagents, professional organizers, beauty salons, and
Collaborate with a well-known company - Most smallrealtors, and several nonprofits, to name a few. We
businesses benefit from partnerships that add value,have collaborated on networking events such as
prestige and greater credibility to their ownbusiness after hours and open houses. We have
endeavors. Associating with a well-known businesspromoted one another through door hanger
can give your company instant credibility andcampaigns. We have given each other our coupons
exposure. It's not always about the bottom line.to distribute to other companies. We have carried
Collaborate with Your Best Customers - Look at theone another's business cards and brochures to
company or companies who do the most businessdistribute to our respective clients and customers.
with yours. Work with them to solidify theWe have given away one another's products to our
relationship by offering them more than just goodcustomers. We offer hyperlinks on one another's
products and service. Make it nearly impossible forwebsites to further promote each other. The
them to consider going anywhere else. Continuallypossibilities are endless. Look for opportunities in your
asking them why they do business with you and whycommunity that would be mutually beneficial to your
they stay are the best ways to keep them.partnership.
Collaborate with the Nonprofit Community - JoiningThe real key to success in cross-promotion, is to
forces with nonprofits can increase your circle ofcollaborate with non-competing businesses that are
influence and your visibility in the community.going after the same client or customer base.
Collaborate with a Former Employer - You offer aChoose businesses and people you trust. The
product or service the former employer needs andpromotion should make sense to both partners. It
provide it to them. You become a subcontractor orshould be a true win-win for everyone involved. Plan
vendor to them. One of my dear friends worked forthe promotion and evaluate the Alliance on a regular
a fast-food company as their corporate trainer.basis. Look for ways to expand your reach without
When she decided to go into business for herself,increasing your overhead or debt.
they hired her to continue to provide training to theirExcerpted from The PMS Principles - Powerful
employees for several years. As her first majorMarketing Strategies to Grow Your Business ©
contract, the collaboration they created started her2005 - Heidi Richards is the author of The PMS
company on the road to success, and she still travelsPrinciples, Powerful Marketing Strategies to Grow
and does work for them.Your Business and 7 other books. She is also the
Collaborate with a Competitor - Believe it or not,Founder & CEO of the Women's ECommerce
competitors can be very good partners. For instance,Association, International (pronounced wee-kī)
they may offer a service or product you don't or- an Internet organization that "Helps Women Do
don't wish to and vice-versa. They may also haveBusiness on the WEB." Basic Membership is FREE. Ms.