Many businesses reach financial success through the creation of strategic alliances. But which alliance will work for you? I almost gave up more than 30% ownership in one of my companies to someone who promised to make my business a success beyond my wildest dreams. Fortunately, my legal advisors intervened and saved me a great deal of potential lost income. Strategic alliances are where each member of the alliance shares in creating more business resulting in more wealth for each business. However, alliances should not be built on trust alone. Alliances should be built with a detailed strategy on what role each business will play, how the financials will be shared and how challenges will be faced and acted upon. Remember “discuss and verify” is the most important phrase in building strategic alliances.
Here are some of the elements to consider when forming your strategic alliances:
- Be clear about the objectives of the alliance
- Get the design right
- Manage the alliance effectively after it is formed
- How to identify a profitable potential alliance
If you feel your business could succeed from participating in a Strategic Alliance, please call me at 312-778-6406 today.