A strategic alliance is an invaluable investment for businesses of all sizes.

But, how do you forge a partnership that will benefit both sides of the equation?

Keep reading for a closer look at how to build a strategic alliance that helps everyone involved.

To Build a Strategic Alliance, Start with the Right Partner

Building a meaningful alliance can be a challenge, especially if you pick the wrong partner.

Look for a business that can benefit yours through technology, capabilities, or clients. But, also be sure to think long term and how the relationship might develop over time.

Do your due diligence and look into a potential partner’s reputation. At the same time, don’t feel like you need to settle for good enough.

If you can’t find the right organization to partner with, consider joining a professional association that can help you form a network and relationships.

Does Everyone Have Skin in the Game?

Before you form an alliance, make sure everyone has some skin in the game. One party should not be assuming all the risk or investment.

Everyone should be prepared to dedicate resources to the relationship. Whether it’s time, information, money, or something else entirely, both sides should be contributing.

Encourage Accountability

When building a relationship of any kind, accountability is often one of the most important pieces.

Make sure that both sides know what they’re accountable for, and assign someone to manage that aspect of the relationship.

Communication Is Key

If you want to form an alliance that will truly be effective, it’s important to establish clear lines of communication.

Statistics show that poor communication can cost you, big time.

Keep the lines of communication open and always be on the lookout for ways to get to know your partners better.

Don’t Be Greedy

It’s not all about you. Keep this in mind when forming alliances.

As important as it may be for you to form a relationship that benefits your business, don’t forget that an alliance is a two-way street. Work to help your partners as much as they’re helping you.

Make Sure Everyone is on the Same Page

Many business owners are great at figuring out the details of a contract. They can allocate money, time, and resources. Figuring out who gets what is not difficult.

However, the nuances of a business relationship can often cause real tension, if not addressed early on.

Before finalizing your partnership, make sure you’re on the same page when it comes to ethics and business mindset. Disagreement in areas like these could lead to problems down the road.

Set Expectations Early

Before establishing any kind of relationship with another business, it’s crucial that you set your expectations as soon as possible.

Before you get into the details, make sure everyone understands what they’d like to achieve and how they’d like for it to happen.

Your Turn

Setting up a strategic alliance can really help to turn your business around and increase profitability.

If you’re thinking about partnering with another business, be sure to do your homework and choose your partners wisely.

For performance-based business consulting, contact The Business Turnaround Group.

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