With the economy in such a tailspin and banks and other forms of capital becoming more restrictive, how can small and mid-size companies position themselves for growth? For many businesses (whether for-profit or not-for-profit, large or small), the key may lie in the establishment of joint ventures and strategic alliances. The current and projected economic terrain makes it increasingly difficult to “go it alone.” Studies suggest that those organizations that are successful in forging key partnerships and alliances with individuals and institutions that share a common objective and philosophy will have a significant competitive advantage over those that choose to operate independently. The simple reason for this advantage is greater access to resources. In an increasingly competitive and demanding environment, the more resources or “tools” you have at your disposal, the greater your chances of possessing the right tools for the right “projects,” which increases the probability of success. More specifically, the right joint venture partner or strategic alliance may bring additional financial capital to the equation, and/or additional infrastructure, technology, operating systems, talent, industry relationships, key contacts, etc. Combining the resources of your business with the resources of another creates leverage that can potentially open doors to business opportunities that neither partner could accomplish on their own.
Authors Adam M. Brandenburger and Barry J. Nalebuff refer to this concept as “Co-Opetition” in their best-selling book Co-opetition: A Revolution Mindset That Combines Competition and Cooperation. In a related work, author Robert L. Wallace explores the benefits of joint ventures and strategic alliances in his acclaimed book Strategic Partnerships: An Entrepreneur’s Guide to Joint Ventures and Alliances. These resources and other related material will serve to get you started on perhaps a new way of thinking about growth and success in these challenging times.
Darrin is Chief Economic Inclusion Officer of JumpStart. He founded and ran his own strategic planning and management assistance firm and spent 16 years in the commercial banking and finance industry. Darrin has an MBA from Baldwin Wallace College and an undergraduate degree from Mount Union College. He has led a series of workshops and seminars on matters of economic development and diversity.