Two's Company Homebased expert Kim T. Gordon answers our readers' questions: Why should you find a business partner?
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Question: How do you know if it's a good idea to gointo business with a partner?
Karen
Los Angeles, California
Answer: Whether you set up a formal business partnershipor simply partner for marketing purposes, there are at least fourgreat reasons not to go it alone.
1. Expand your business. Add a partner who provides asimilar service to your own (such as when two accountants team up)and effectively double the size of your firm. You can pool yourprospect lists for marketing efforts and double your expertise topitch and win larger accounts. Your joint marketing budget will gofarther, too.
2. Add new services. Team with a business that offerscomplementary services, and you open up a whole universe of newprospects for your growing company. For example, a creativecopywriter might team with a graphic designer to create afull-service design firm. By providing a turnkey solution, you addvalue and increase the desirability of your company'sservices.
3. Reduce your marketing costs. Form a marketingpartnership with a group of businesses that offer complementaryservices to the same target audience to create brochures and othermaterials. For example, a lighting designer might form a strategicpartnership with a kitchen appliance and furnishings showroom and ahome-remodeling contractor. Together they could produce a colorbrochure and continuously looped video to run in the showroomshowcasing the talents of all three companies.
4. Take on new markets. Want to expand geographically?Form an alliance with a business like yours in another city. Thiscan be a formal business partnership in which ownership isestablished or simply a marketing alliance that allows you topromote your firm as one with offices in several cities. You'llget instant big business marketing clout without the overhead.
No matter what form of partnership you choose, it's best totake it slow. Get to know your potential partners, and be certainall lines of communication are open. Discuss any concerns and allpossible impediments as well as benefits, and put the parameters ofyour relationship in writing so everyone clearly understandswhat's expected of them.
