2018-04-26 10:55:00 Business Insights English Form a strategic business alliance to help your business reduce costs, expand your distribution network, or gain entry into a new market. A... https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2018/04/05080344/Business-Owners-Discussing-Possible-Alliance.jpg How to Form Strategic Business Alliances

How to Form Strategic Business Alliances

1 min read

If you want your business to grow without necessarily increasing costs or the size of your business, consider a strategic alliance. Unlike other business partnerships, it helps your business become successful through the assistance of another business, while still remaining independent. Strategic alliances help your business enter new markets, increase your product range, and improve your production. There are no rules on how to form a strategic alliance, but you should pick a company that has resources you need, and vice versa.

Whether you want a larger network or need to cut costs, a strategic alliance with the right company can take the success of your business to the next level. For example, a good strategic alliance for an internet clothing store would be a partnership with a courier company that can speed up delivery times for your customers.

To make a strategic alliance, you should set up a meeting with an executive of a potential business partner. Discussing your resources and guidelines for ways both businesses can make a profitable relationship is the first, and most important, step. Use this time to talk about potential downfalls each business may face because of the alliance. The goal of the first sit-down is to figure out the milestones or goals you and your business partner need for success.

Strategic alliances can help both businesses step into new markets without spending extra money or using unnecessary resources. This partnership is beneficial for both businesses as the alliance ensures each business remains independent while capitalizing on the resources or credibility of the other business.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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