The life-blood of every business is running costs, which come from conversions, sales and turnovers.
Regular sales are made when the appropriate framework is established for systematic and automatic customer acquisition and customer monetization.
You have to strategically come up with, and put in place some systems for constantly and regularly acquiring customers to your business, products, or services…
As well as systems that will let you make money from such leads and prospects…and turn them into customers automatically.
This kind of systems would not only give you assurances of making money, but they will also ensure you always remain in business.
Not even added to the fact that they will reduce your efforts, money, time, etc., spent for looking for and finding customers for your business…
…as well as the combination of the time, stress, and so forth, needed to make them buy from you and your business.
An example of such systems to put in place is what I call; “Strategic Business Alliances”…and these come in different forms.
Strategic Alliances with Businesses in Your Industry, But Who Aren’t Direct Competitors
When you look critically around you, you’ll find certain businesses and companies in the same industry as you are, but whose businesses, products, or services aren’t directly competing with yours…
…better still, their businesses, products, or services might even seek to complement yours.
These are a class of people to reach out to and seek to make some business alliances with.
You might be a web designer, and have a graphics designer who can design logos, icons, web and social images, etc., as a business ally.
A graphic designer could align with a digital marketer.
A web hosting business could enter into a strategic alliance with a web or application designer.
A copywriter could work out a business alliance with a digital marketer.
A courier service and a transport company could both work out some strategic business alliances between themselves.
A plumbing business could be an ally of a builder or bricklayer.
A draftsman or architect could work out some business alliances with a land surveyor.
A restaurant could be a business ally with an event management business.
A computer or tech engineer could work out some business alliances with a sales outlet that sells computer or tech items.
An event planner could be in some strategic business alliances with a beautifier, cloth designer, makeup designer, etc.
Now, sit down with a pen and paper and write down those strategic alliances that would work for both you and another company.
With that, you’re creating a kind of “win-win” relationship for you both.
When a prospect of your business ally needs something to complement the service he/she is getting from your business ally…
…they instantly remember you, and quickly mention you, and direct such prospects to you…and you also do the same for them too.
You need each other.
Now, for these arrangements to work well, it’s usually best if the two businesses work in different areas of the same field or industry…
…where there are opportunities to combine efforts to create a whole that is more profitable for both parties than the services would be if sold separately.
A movie production manager would need a costumer, a caterer, a driver, a video team, post-production team, etc.
Very often, these services are provided by different companies and businesses.
This opens up tremendous opportunities for a strategic alliance.
A strategic alliance generates great business for everyone involved.
Asides from reducing money spent on marketing by the parties involved, strategic alliances also vastly improve overall marketing because no prospect feels they are being sold an entire package, such as a one-stop shop.
When a client needs an event manager for their wedding, the event manager could say, “do you like so and so design your hair? Or so and so design your cloths…?”, this comes across as an unbiased recommendation, not a sales pitch.
A strategic alliance of this nature expands your capabilities and makes you seem bigger than you really are.
Plus, you don’t have the burden of a lot of money spent on marketing to get those jobs.
A strategic alliance of this nature is not a partnership or a marriage.
It can be informal most of the time, or deals can be formalized for certain distinct projects and ventures.
Another mode of strategic business alliance is…
Getting Overflow Work from Friendly Competitors
In business, you have to be friends with all of your competitors.
You don’t really have to consider them to be competitors at all.
The truth is, there’s enough business out there for everyone.
You should like your competitors because they do what you do.
You share the same interests.
When you get together, you’ll all share your secrets and your battle stories.
You’d have a great time.
You should love your competitors because you have the same problems, challenges, and interests.
In whatever business we’re in, there are always the “Big Boys”, and there are always those who are just starting out.
Those who are just starting out are not always a threat to the “Big Boys”.
The “Big Boys” almost always have an overflow of business that they reject because it’s not profitable enough.
If you’re just starting out and just getting established, you can ask the Big Boys in your industry for their overflow work.
Form a strategic alliance with them.
Always encourages your industry Big Boys (who’d most likely be undefeatable competitors to you – at the moment) not to turn down any work they don’t want to accept…
…but to allow you to do such work as a subcontractor.
If a Big Boy in your industry normally charges say, $700 (around #280,000) for certain jobs, but some clients are willing to pay say, $500 (about #200,000) for the job, offer to do it for say $300 (about #120,000) – if that makes business sense for you.
Allow the “Big Boy” firm to invoice at their rate, and pay you the $300 you’ve agreed to, and let the “Big Boy” firm keep the $200 profit for doing almost no work, except the invoicing – for the work the “Big Boy” firm was going to turn down.
Again, this is a “win-win-win” game for everyone.
The client wins because they get the work done.
The “Big Boy” firm wins because it gets $200 of the $500 it charges for the job, while having to do almost no work for the fee.
But a most important part is that the “Big Boy” firm does not annoy a customer by rejecting the work.
And you win because you make your usual $300.
Conversely, if you’re the “Big Boy” of an industry, don’t be afraid to help out your start-up competitor firms.
If you can keep a client happy by sub-contracting with your start-up competitor, and make some little money along the way, please do it.
Your customer will be pleased that you always have the time for their work, even during your busiest times.
There’s no need to see your competitors as enemies.
There’s more business and work out there than all firms in any industry combined can handle.
Try to work together harmoniously, intelligently, and creatively to create a bigger benefit, and more business for everyone.
Strategic alliances are a huge vehicle for generating more business for everyone.
I hope you find this post helpful? If you do, then kindly drop a word or two in the comments section below.