Thursday, October 28, 2010

Three Proven Business Collaboration Development Strategies

As an entrepreneur or manager, a strategic industry partnership may take the backseat to lead generation campaigns, which can consume your marketing efforts. After all, approaching more clients often equals more revenue. However, a business development strategy that includes business collaboration is in itself a key part of marketing, since it can yield multiple prospect referrals. By collaborating towards mutual interests, it is often far easier to generate sales leads with comprehensive business development then by attempting to go at it alone.

Here are three proven scenarios in which B2B business collaboration is most successful:

  1. A distribution channel: A manufacturing company would like to penetrate a new market, region, or country. Instead of upfront investments in salespeople and warehouse/office expenses, companies should explore local resellers, distributors, or agents that already have the connection with the target market. Therefore, they can be ready to serve potential new clientele in a very short period of time. In the past, we have assisted companies in finding distribution partners, training them and building incentive plans to control distribution performance.
  2. A strategic partnership: In this case, two or multiple organizations choose to work together to achieve a mutual goal. For example, two software companies decide on mutual R&D efforts in order to cut down the development period of a new innovative solution, while sharing the knowledge base of both participating partners. Shortening the time-to-market of the innovative solution would result in a faster delivery to their clients and in acceleration of your company’s revenue. Direct Objective Consulting has had proven success identifying strategic partners and negotiating terms.
  3. One complete solution: The way milk goes with cereal, and salads are served with a dressing, your company needs to find a complementary partner that unites each of your individual specialties into one comprehensive solution. For example, a medical device company can make an alliance to bundle its device in a healthcare kit that is packaged by another company. Or a specialty battery producer may choose to have their batteries already pre-packaged with the suitable hardware/electronics. Think about what can work for your product or service.

The strengths and weaknesses of each of these three business development strategies are dependent on a number of factors, including your company’s industry. Business development has been proven especially useful in service, telecommunication, government, and health care industries. Additionally, many industries have small, tight-knit communities, where strategic partnerships can even more rapidly accelerate your company’s exposure.

The best business development strategy will create win-win situations that would last long-term, and ultimately create more business for your company. Consult with us today if you need assistance in forming a successful business development strategy to build long-term relationships within your industry.

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