The curse of the small business owner and consultant: the "Lone Ranger Syndrome". This affliction causes struggles and limits growth and opportunity simply because of a need to "go it alone". So what can you do to rid yourself of this affliction? Well one way is to develop joint ventures or alliances and by that I mean... "A partnership/partnerships that create or add value to the vision and goals of all parties that also adds or creates value for their current or potential customers. The value created would not have been possible if either party had solely operated on their own." Wars have been won and lost by the strength of alliances. Communities have grown or perished through the collaboration of neighbourhoods. People have used the concept of many can offer more than one for a variety of different means for a long time. In today's business environment alliances of all shapes and sizes are everywhere. In a report by Atos Origin in May of this year they said "After years of transformation in consolidation, globalisation and outsourcing, companies who create, manufacture, distribute & retail consumer products need to unearth a new way to improve their businesses. ...new forms of collaboration between these companies can achieve greater product innovation and consumer intimacy, leading to competitive advantage for the future. ... collaboration across the value chain, from R&D through to manufacturing, distribution and information technology, as a path to top-line revenue growth and higher profit margins,..." 2 main reasons why you would consider an alliance of some kind are Leverage and Profit and there are 6 key areas where this can apply. Talent - Businesses only succeed through their people. This applies equally whether you are a one person company or a global organisation. People make businesses what they are. Therefore to be able to leverage talent is critical. Knowledge - Information is held within the brains of people and spread across companies in many shapes and forms. Documents, processes, research methods and online. If that information is to serve a valuable purpose it needs to be leveraged. It then becomes knowledge that is useful and applicable in many situations. Capacity - This is an area that many SMEs struggle with when they are looking to grow. Capacity in many formats can be a limiter to growth and is therefore a key area for an alliance. Access - Expansion into new markets using different channels giving access to new clients is one strategy for growth and partnering with someone to gain this access can be one way to leverage a partnership. Resources - Access to money and equipment for expansion or development are another area where a partnership can be beneficial. Future Fun - The value of simply getting together with a few people to share ideas, think through new opportunities and to exchange knowledge and experiences is often overlooked and yet can add real business and personal value especially if you work for your self - it can also be a sanity check! So where can you see opportunities for leverage in your business? And Who could you be looking for to create a future alliance for future increased profit? |
