Your success is defined by the company you keep. It is true not only for life but running a business also. It does not matter if you are new or old in the business; the business alliances can be of great strength, provided you have chosen them well.
To guide you to have the best of business alliances, I have summarised a few important points to keep in mind.
1. To have an alliance in the complementary business is good, but ensure that they also share the same values, ethics and approach to business. It will ensure that you shall be able to understand each other better and the relationship between you both (and your clients) will be more congruent and relevant.
2. A clash can appear if you share clients in common. A competitor may not be a good alliance in every instance. However, I’ve proved that often to not be the case. I work with a range of clients, but there are some I work with, and have a number of quality business coaches that I refer to. Though, if we are both going to service the client at the same time, I make sure to discuss with the client and each other who will do what. Things work clearer when we are all clear about each party’s involvement and that each party respects the other party and their involvement.
I had a coaching client recently who had a bookkeeper he’d worked with for years and years. His accountant kept sledging her work and her manner constantly but was never specific about what he disliked. It was a drain on the client and left a sour taste in his mouth. I suggested to the client to ask his accountant why he spoke in this way; was her work sub-standard, or something else? As it turns out, the accountant said he was ‘just joking around’. Not funny; the client was at the end of his tether and close to switching accountants.
3. You must know clearly your expectation from the arrangement and what you want to achieve through the alliance. There has to be a clearly defined purpose and value addition for both parties to make the arrangement work.
4. The alliances do not work overnight. You have to be patient enough so that both understand each other’s businesses well. It may take anything from 6 to 12 months to make the arrangement work for the best of benefit to both parties.
5. To make the alliance work, regular communication is a must. Plan to meet or talk regularly, maybe once in a quarter, to discuss the purpose and progress of the arrangement. Maintaining regular communication through e-mail, phone and sharing info on the progress made in pre-defined directions is a good way to make the relationship move in the right direction.
6. One main purpose of having a strong alliance is to get referrals from each other, but before that happens you need to build up like, know and trust; that is; do not expect referrals the day after you first meet. It will take time so spend the time wisely by trying to understand each other’s businesses.
7. You can share your business cards or flyers (physical or digital) with your alliance partner so that they can hand them over to prospective clients or referrals. You can also develop a methodology to make your alliance refer a customer to you. I tend to refer in writing in an email, or via Facebook Messenger, if the request came from that source. A warm introduction always goes a long way – but having said that – I would never refer someone I don’t like, know and trust. I may not have personally used them, but I will know someone closely who has used them at least.
8. When you get a referral from an alliance, keep informing them of the progress with the account. Naturally, remember to say thank you and ideally not just via a two-word email. Send a card with a scratchie if you truly value the referral. If they refer a lot and they are not referring the right type of client, then let them know (nicely). Tell them why so that next time they can make the right referral.
9. To keep the alliance fresh, make sure that they are timely updated on the changes in your products and services to be able to inform the prospective clients better. Also, make sure that you and your team are fully informed about the alliance to be able to guide a good client to them.
10. Keep your referrals genuine. I don’t like accepting money for a referral or referral fee, as I feel this can affect the suitability of a referral, or for either party, the perception of the honesty of the referral. I prefer to just refer and know that it’s a win-win-win situation; and I get no more than appreciation from both parties for the opportunity of the connection I’ve created. I will never refer someone to a service provider that I don’t believe is quality, a good fit or the best option for that person.
Only when you are able to think both ways and have clear road map to what you want to achieve for both the partners to the alliance can you make something concrete to come out of the arrangement.
If you want help with this, or any other marketing or sales strategies (or business coaching of course) please reach out to me; more than happy to discuss your needs.
Read Tips to Small Business for Hiring & Retaining Top Talent.
