According to Merriam-Webster, “collateral” is defined as “property (such as securities) pledged by a borrower…
In case you haven’t noticed, we’ve been celebrating the advent of autumn, here at Synergy Merchants. As we’ve mentioned in our recent blogs, a new season is always something that business owners should celebrate. It offers fresh new opportunities to advertise, launch sales and offer new products.
However, we’re also well aware that, for many businesses, the start of a new season means a dip in sales. And while there are numerous ways to resolve the slow season issue, in today’s blog, we’d like to discuss one that often leads to great success: business partnerships. Have you considered partnering up with another business?
Here are three reasons to consider it:
1. Each company has a problem the other can solve.
This is, arguably, the single most important reason to partner up with another business. Naturally, it only makes sense for the partnership to benefit both parties. What can you do to help the other business? What can the other business do to help you? Until these two simple questions are answered with solid solutions, a business partnership is unnecessary.
“There must be a win-win situation in order for an alliance to work,” insists Olga Mizrahi on FastCompany.com, “There’s always ‘consideration’ – a value bargained for by both parties. Nobody gets something for nothing.”
2. You’ve found someone with a similar personality and work ethic.
One of the hardest parts about business partnerships is contending with personality clashes. This is especially true between two individuals who are either friends or family members. On TheBalanceSMB.com, Susan Ward places the partnering up with a spouse or a friend at the top of her list of reasons why business partnerships fail. This isn’t to say that all business partnerships between friends and relatives don’t work. However, it is vital to partner with someone who thinks and works just like you do.
“Sharing risk and having complementary skill sets are some of the great advantages of business partnerships, but if the personalities of the partners do not sufficiently mesh, the business may be headed for trouble,” writes Ward, “Disagreements among partners are to be expected, but heavily contrasting personalities can amplify differences of opinion and lead to resentment and conflict.”
3. Your geographic alliance makes the partnership a no-brainer.
One of the easiest alliances you can form is with another business that operates in your area. You may even want to consider the business located directly beside you if the situation makes sense. It’s wise, of course, to select a business that isn’t your competitor. Let’s suppose you own a restaurant and your next door neighbour is a bike shop. It certainly can’t hurt to place coupons in the bike shop while you offer something similar from that shop to your patrons.
“Geographic alliance is the local coffee shop that displays an impressive arrangement of fresh flowers on its front counter, provided by a florist located just a few doors down,” explains Mizrahi, “The coffee shop receives a beautiful addition to their décor, while the florist gets to reach out to potential customers in the area that may not have otherwise been aware of its services.”
Are you thinking about partnering up with another business, but are worried about the costs that may be involved? Contact Synergy Merchants and be sure to ask us how our unique merchant cash advance program can help you. Call us at 1-877-718-2026 or email us at firstname.lastname@example.org. You can also apply online for a free, no obligation quote!