Business Alliances – Strategy For Small Business Growth

Business alliances are often overlooked or not given much consideration by small businesses, yet they can be vital in helping a company grow and prosper. All too often, small businesses think alliances are just for big businesses; as a result, they neither explore nor pursue them. However, they can be just as beneficial for small … Continue reading “Business Alliances – Strategy For Small Business Growth”

Business alliances are often overlooked or not given much consideration by small businesses, yet they can be vital in helping a company grow and prosper. All too often, small businesses think alliances are just for big businesses; as a result, they neither explore nor pursue them. However, they can be just as beneficial for small businesses as they are for large corporations. If a small business is serious about gaining access to new markets, capitalizing on technology, growing profits using shared resources, they should consider a business alliance.

It’s no secret, businesses that share resources can create greater efficiencies and become more profitable. Business alliances can increase synergies and mitigate potential risk, while allowing companies to work together toward common goals as they maintain their individuality. There are several types of business alliances, each with its unique attributes.

Now is the time to assess what your business brings to the table. What assets, either tangible or intangible, does your business possess that when leveraged with another company can unlock greater potential for each business?

Alliance opportunities can be developed with suppliers, customers, investors, complementary businesses and friendly competitors. Some alliances are natural matches, while others require some creative thinking. I’ve listed the different types of alliances below, along with a description and example of each. When reading through them, think about how your business can create the benefits of a win-win proposition with another company.


A joint venture is a contractual arrangement whereby a separate entity is created to carry on a trade or business on its own, separate from the core business of the participating companies. Businesses often come together to share knowledge, markets, funds and profits. In some cases, a large company can decide to form a joint venture with a smaller business in order to quickly acquire critical intellectual property, technology, or resources otherwise hard to obtain. Companies with identical products and services can also join forces to penetrate markets they wouldn’t or couldn’t consider without investing a tremendous amount of resources. Separation is often inevitable because JVs generally have a limited life and purpose.

Example: You’ve developed a product but have a limited distribution base. Another company has the distribution system in place with a sizable market and wants to expand its company’s product offerings. You form a joint venture with the other company to jointly promote the product. It’s a win-win because you don’t have to fund the costs of reaching the potential customers and the other company expands its value and product offering to its current distribution base without having to fund the research and development costs of a new product. A contract would be signed detailing the aspects of the agreement.


A strategic alliance is generally an arrangement whereby a separate entity is not created. Participants engage in joint activities but do not create an entity that would carry on trade or business on its own. The strategic alliance partners may provide resources such as products, distribution channels, manufacturing capabilities, capital equipment, knowledge, expertise, or intellectual property. Each party in the alliance maintains autonomy.

Example: A business management consultant wants to expand his services. He currently offers coaching, marketing, financial and operational consulting. He has noticed an increase demand for HR and diversity consulting from his clientele. He currently has no desire to hire additional personnel with the degrees and certifications required to offer these services. He seeks a strategic alliance with a HR and diversity consulting firm. The new firm agrees to work with his firm when opportunities arise for their services and a percentage of the revenue generated from the services provided will be returned to his firm.


A partnership is a legal agreement between two parties wherein both the parties agree to share profits and losses of a common business with no anticipated end date.

Example: A company whose primary function is to sell ads and produce unique coupon circulars to promote a variety of small businesses to the residential community had a substantial printing bill monthly. The company sought a partnership with a small printing company. The printing company had the expertise but limited printing volume. It required purchasing equipment that the printer didn’t have but saw a need for. A contract was signed establishing the new company; cost of the equipment was split between the two entities. The coupon circular producer sent all its business to the new venture at a substantial discount. The profits from the new venture were divided among the coupon circular company and the printing company. Each kept their original businesses separate from the new business.


A marketing alliance is an agreement involving two or more companies to share cost and resources to promote each of the companies within the group. The target markets of the companies within the alliance usually share similar characteristics. The alliance can be a formal or an informal agreement.

Example: A group of locally owned and operated restaurants band together to form a marketing alliance. The alliance, similar to groups throughout the nation, promotes the uniqueness of their cuisines in an effort to stand out against the national chains. The group pools their resources to run ads and produce a direct mail guide to promote their menus, while offering discounts. They pay an upfront fee and then contribute several hundred dollars in gift certificates every quarter. Those certificates are sold online at a discount to help fund their marketing efforts. Donating gift certificates help keep the cost down for the participating restaurateurs.


A collaboration is when two or more businesses come together to share resources to create greater efficiencies such as the sharing of employees, equipment, shipping cost, rent, products and etc. Collaborations are generally for specific time periods and resources.

Example: As a small business you may have a difficult time throwing a first class holiday party for your employees. You want to show them just how much they are appreciated but the economy is tight and company funds are even tighter. Pooling your resources to have a party with a complementary company, saves money for both companies and could potentially pay off in new business opportunities and networking.

Managing the Alliances

Each company should bring a balance set of strengths to the alliance but there are other considerations as well. You must manage the alliance to ensure it contributes to the success of each company. Listed below are few of the things you should consider to produce a successful alliance:

1. Alliances should be made with the decision maker. You must have the support and commitment from the business owner and not just a manager.

2. Communication is a key ingredient. Clearly communicate the goals and objectives of the alliance in the beginning.

3. Develop the metrics the alliance will be measured against. Determine how the performance of each of the companies will be measured.

4. Allocate proper resources to the alliance. Don’t get half way through the project before you determine the proper resources were not allocated to the venture.

5. Ensure that all participating employees are committed to the success of the alliance. You need buy-in from everyone involved, not just a few select people.

6. Detail the responsibilities of each of the participating companies. Be explicit in what the expectations are for each of the companies in the alliance.

7. Just like all things, nothing is perfect. Be prepared to make changes if something is not working.

8. Stay committed and focused on the benefits of the alliance rather than the inconveniences the alliance may cause.

Each party must benefit from the alliance for it to be successful. Otherwise, like a marriage, the relationship will go from honeymoon to divorce court quickly and all parties will suffer.

Home Business Alliance, Money Maker, Or Lose Your Shirt?

For sometime now there has been a buzz building about a new opportunity, Home Income Alliance. This article will review the business, so you can make in informed decision for yourself.

Home Income Alliance is a re-branding of (IPC) Income Profit Centre, which was created by Dan Miller. It has taken all the good things about IPC an improved them. This was done primarily to add more income steams for members an give them much more value within the system.

So what is the principle business of the Alliance system? It is basically a home business system in a box. You can choose to market the business opportunity, or can market individual software an digital products. From my observations most people seem to promote the complete system, as this is where the largest profit lays.

I have been researching Home Income Alliance for this review an have been fortunate enough to see the back end of this system.

1) The ”getting started” section will teach even beginners how to upload there site, set up auto responders, and except payments.

2) Each member has 3 websites: the main Alliance site, a digital product shop, an power income site.

3) Full Training, Videos, live conference calls, and support from your direct sponsor.

4) Comprehensive tracking of all sales

So how does it all come together? – Home Income Alliance was created to allowing average people to earn to earn a real income online starting today. A true turnkey system that allows you to plugin immediately.

Members have have 3 levels to come in at, the top level will payout commissions an overrides on all 3 levels, because of the inbuilt perpetual leverage the income continues to grow month to month.

Home Income Alliance Review Verdict – Scam or legitimate business? Well I personally believe it is not a scam. The company, products and opportunity seem sound. However, like all opportunities out there if the individual does not do any work, they will make no money. Every legitimate business requires a legitimate work ethic.

Who is this suitable for? – Everybody, experienced marketers will make very serious money, while beginners will be walked by the hand step by step with team support though the best training available

Online Business Alliance (OBA) – “Stacked Income”

If you’ve ever purchased an ebook or an online business opportunity, presented by compelling sales pages with copywriting that lured you in like a big red fish, only to be completely disappointed, you ought to read this.

You know how they do it.

It starts with a big red headline using an impact font that captures your attention. For example, “Who else want to make X amount and finally learn the secret to making money online?”. Something like that.

Next, they try to reel you in, pull your strings and make you feel as though you are not doing everything you can to support your family. “Take action NOW!” “See you on the other side” they say.

How many times have you heard that?

You send them your $49.95, you reach the other side, and learn that the secret to online marketing is writing articles and posting in forums. Do this consistently and you can ride off into the sunset.

If you are like me and don’t give up, you should read “Stacked Income” by Dave Gray. It is well worth every penny. In fact it costs 500 pennies ($5).

Mr. Gray is a distinguished business man with a fresh, real world approach to Internet marketing. He is the founder and administrator of the Online Business Alliance (OBA).

One of the main points is that Stacked Income” is not another name for “multiple streams of income”. Gray explains in detail how “multiple streams of income’ never work and contrasts that to his stacked income formula in a step-by-step methodically way.

Another important chapter covers the fallacies involved with “the money is in the list” approach. How many times have you heard that? Dave Gray squashes that theory as well and explains why in a no nonsense businesslike approach.

When you purchase “Stacked Income” or any other of Dave Gray’s products for $5, you are automatically provided an online business opportunity and membership to the Online Business Alliance (OBA). Basically, it’s an invitation you can’t refuse.

Once you’re inside the OBA, it is also a step-by-step process. You can leave and come back, but you can’t skip a step. This helps everyone.

Speaking of help, there is tons of it in the forum and Dave Gray will answer your questions personally if necessary. Everyone in there is friendly, knowledgeable, and helpful. Absolutely no one will try to sell you anything or try to get you to do this or that. The help is truly genuine.

There is a lot more to the Online Business Alliance and “Stacked Income” than selling five dollar ebooks and digital products. While that is a lucrative business for many and the product line continues to expand, the business model outlined in detail in “Stacked Income” is the exciting part.

This is not the same old same old ebook with the same reused, resale rights content with a new, spruced up ebook cover. This is proprietary and revolutionary new information that will prove to be the future of Internet marketing for the foreseeable future.

How to Build Better Business Alliances

Judging by the popularity of instant message programs, chat
rooms, and discussion forums, it would seem logical to
conclude that people enjoy interacting with one another in
an almost anonymous, virtual environment. Although people
enjoy the anonymity they still crave attention and
relationships with other people. Sometimes, the internet is
so impersonal, and cold that getting a nice email from an
actual person that doesn’t want your money is almost

People especially enjoy interacting with those of similar
interests. Why not use this to the advantage of your
business? Internet marketers don’t usually have anybody in
their lives that shares the same passion. And, as a whole,
Internet marketers are very passionate about what they do
and love discussing it with others who share that same
passion. By creating friendships with other online
marketers in your niche you open yourself up to a world of

The ability to build an alliance with someone powerful and
successful in your field is literally priceless. A lot of
businesses survive on their contacts alone. With a good
contact you open up to joint ventures, exchange of
information and ideas. Affiliate partnerships, market
research, years of experience, links to your site These
friendly contacts, all which are call “alliances,” can
provide you with the leverage that you need, not only to
learn quickly, but to market your product to large
audiences of people fast.

Having an alliance is many times better than just proposing
a joint venture to someone for several reasons. First, a
joint venture proposal to someone you don’t know will be
treated with so much skepticism that your chances are slim
to none. Whereas getting a JV proposal from a trusted
contact whom you have been exchanging emails with regularly
for a couple weeks will get much more consideration.
Building up a friendly alliance with someone online is a
lot like making friends in the real world. People don’t
like to be badgered, they don’t like know it alls, they
don’t like back-stabbers, they don’t like needy people, and
they don’t like it if you follow them around and use up
their time.

It is recommended contacting someone for the first time via
a short email. Compliment their site, explain who you are,
and then ask them a simple question that wouldn’t
compromise their business. This way, you won’t use up too
much of their time but your inquiry demands a response.
When they email you back, follow a similar format but offer
more information about yourself. Write a longer email. Try
to keep a volley going back and forth and after a while see
if they have an IM name. Infuse your emails with your
personality and become curious about them, their
motivations, and their life. Before long, you will have a
friendly business contact with someone that could pay off
in infinite ways.

Getting business alliances to promote your product Before
seeking to ask a business alliance for any favors, such as
blasting your ad their list. You must already have a
powerful, proven sales process in place before you seek
their counsel and/or assistance. Do not become overzealous
and assume that someone has the same belief and passion for
your product as you do. All too often we become prideful
and think that our product is the best when, in fact,
others do not share the same appreciation. If you are
seeking to have someone with a big list send out an
advertisement for you product you would have to be careful
in how you went about it.

Someone with a big list and a successful business is, most
likely, busy. They probably get hundreds of emails a day.
Unless your proposal is credible and attractive to them it
will not get consideration. The majority of people and
especially entrepreneurs are cautious by nature. They will
not undertake a joint venture unless you can prove that you
can make them money, that you are reliable, and that your
product will not tarnish their reputation. Make sure that
you don’t waste their time. Don’t insult them with a hyped
up sales pitch about how much money they can make if they
sell your product. If you are trying to get them to mail
something to their list about your product include
statistics, documentation, and, if possible, your actual

Find an ad that pulls extremely well, through testing. Know
the conversion ratio and have everything documented. Let
them know that you are legitimate and that you are selling
a high quality product. Nobody wants to get involved with
someone who is going to tarnish their reputation. Give them
specific, documented conversion statistics from similar
advertising campaigns Make sure and state what is in it for
them. Are they going to get a share of your backend
profits? Are you going to sell their product to your list?
Tell them that promotions for your product have been going

Tell them that your particular ad converts at a specific
ratio. Tell them that you think they should give it a shot.
You do, of course, want to be sure that what you are
recommending will turn out to be profitable for them.
Otherwise, they won’t ever work with you again. And don’t
just pop this sales pitch out of no where or the person
will feel used. It might be a good idea only to mention the
idea and then if they sound interested fill them in with
the details.

Strategic Business Alliance – Ten Reasons Why

1. More Variety – You will be able to offer your customers a larger variety of of products and services.

2. A bigger Sales Force – The number of sales people will increase when you form this alliance. You will spend less time on hiring new employees and still increase your sales force.

3. More Marketing Dollars – Your marketing and advertising budget will increase and both businesses will share the marketing and advertising costs. You will add products and services to your existing customer base.

4. Batch Products – You can increase your sales and profits by combining products with your strategic partners. Adding new products and services will help you increase your profits.

5. A bigger Work Force – Your business will gain a larger number of skilled professionals. This will help you grow your business faster.

6. Beat your Competition – You will be selling to a larger target
audience, thus beat your competition by selling more products and services. You will increase your existing customer base.

7. Add Credibility – You will exchange endorsements with your alliance partners thus adding credibility with your existing customers and potential new customers.

8. Faster Growth Path – You can expand your business at a faster pace. You will develop new products and services because of the larger sales force.

9. Problem Solving Partner – You will solve your customer’s problems faster with the larger base of customer service people. You will learn from your alliance partner how to improve your customer service.

10. A Think Tank – You will have a larger number of people to bounce ideas off of and have a sounding board to solve problems and gain new ideas to grow your business.