are several types of business to business partnerships that a business owner
may pursue in order to improve their business. The main objective behind most
business relationships is to find new customer leads and convert them into
increased sales and revenue for both participating companies.
There are several types of business to business
partnerships that a business owner may pursue in order to improve their
business. The main objective behind most business relationships is to find new customer
leads and convert them into increased sales and revenue for both participating
companies. Consider these four primary types of business to business partnerships
in order to achieve the goal of increased sales and revenue including:
suppliers, customers, resellers or companies with significant existing sales
channels and/or vendors. Each type of partnership has its own unique set of advantages
and challenges for successfully implementing and maintaining, therefore its important
to evaluate each type to understand which is in your best interest to pursue.
Creating business relationships with suppliers usually
makes great financial sense and can lead to unique business opportunities. Many
suppliers are in a very competitive environment and constantly have to find new
channels to sell their products. As a rule suppliers will be willing to give a
business partner special pricing, expedited customer service and business
referrals when opportunities that are out of their scope present themselves. However;
there are some disadvantages with aligning too closely with a single supplier.
It is recommended that you keep your supplier partnership agreements as open and
flexible as possible to allow multiple partnerships to exist in the same space
thus avoiding price spikes or product unavailability due to unforeseen partner
The best types of business referrals come from
existing customers. Provide a revenue share or special pricing for customers
that are able to deliver leads that turn into new clients. Developing an
incentive program for customers that make referrals is a win-win situation. Often
a simple discount can keep your business at the forefront of the customers
mind when their meeting with someone that fits your target market.
Resellers or Agents
Many businesses that have large databases of
potential customers will actively sell a product through their sales channels
for a fee and/or a revenue share. Building partnerships with resellers can
quickly grow a companys ability to reach out to the market. Resellers will
invest time and resources to market their partners products and put their sales
force to work selling the product. Small businesses with limited staff to
actively sell can benefit greatly from these types of partnership deals.
Finding other vendors that sell a complementing
product is the right partnership solution for a company that by itself has a
product that is not the full solution that a customer is looking to purchase. An
example is a computer hardware manufacturer partnering with a company that
makes software to do unique tasks that a customer needs.
As a business owner seeking additional deal flow, it
is important to evaluate all of the business to business partnerships that are
possible for your company. Regardless of whether the focus is on vendors, resellers,
suppliers, or existing customers, if properly executed business to business
partnerships are one of the best strategies for business growth.