Business Partnership or Collaboration? Which Is Best for You?
Expanding the reach of your business can be pretty tough, but you don’t have to stay up late guzzling coffee to achieve this!
Instead, you can reduce some of the stress and strain by working with others.
Two of the most common ways to pool together resources are through business partnerships and collaborations.
And it’s these two exciting avenues that I’m going to explore with you today.
What’s a Business Partnership?
It’s where two or more people come together to run a business.
And pretty much everything in that business is shared from setup costs, profits, authority and even the gifts clients send you at Christmas!
But what are the pros and cons that come with a business partnership?
- Having a partner creates a sense of togetherness and this team ethic can really help you power through the tough times
- A partnership allows you to pool together a wide range of skills to ensure your business can fire creatively on all fronts e.g. marketing, sales, customer service
- Partners all bring different business ideas to the table when making decisions. This allows you to make more well-rounded decisions
- The unwelcome burden of costs and responsibilities is divided between partners resulting in less financial and mental stress
- The financial rewards are all reduced due to sharing profits
- You can find it frustrating not to have full control over your business. You may feel as though your idea is the best way forwards, but partners may disagree.
- If a partner leaves the business then you’ll find this can create great instability for the business financially and creatively
And a Business Collaboration?
This is where like-minded businesses come together to combine their skills to meet business opportunities in the market place.
It may be that your company has a lot of technological know-how, but lacks the funds to deliver this effectively. Likewise, there may be another company with plenty of capital, but not as tech savvy.
However, collaborative efforts between these two companies could be pretty exciting, right?
Let’s take a quick look at the pros and cons involved in business collaboration.
- There’s less risk in taking on new business opportunities when you get collaborative
- You’ll gain access to a whole new pool of talent, business ideas and customers to help further your aims
- Your workload and financial responsibility is shared between the collaborators
- Long lasting relationships with fellow businesses can be formed to provide future benefits
- You may find it difficult to integrate your way of working with another organisation’s approach to business
- It’s possible for one collaborator to find themselves contributing more towards the project than others
- Profits need to be shared between the collaborators, so there’s less financial gain
Which Is Best for You?
It all depends on what you’re looking to achieve.
If you feel as though you want to work with others who are all on the same page and want to work together for the same common goals then it’s partnership all the way.
However, if you’re looking to diversify your business and break into new business opportunities you can’t go far wrong by getting collaborative with others to both push forwards.
Hopefully this article should make that decision a little easier and I’ve love to hear what you thought below.