Four ways to cooperate with other companies to grow your business

Many small business owners spend a lot of time, effort, and money doing things to grow their business that could be done more effectively in conjunction with another business. By this I mean that forming partnerships with other businesses can not only improve the marketing of a small business, but it can also improve the business itself.

In this article, four ways to grow a small business through networking and cooperation with other businesses will be discussed. Each, of course, has distinct advantages and disadvantages. They are: 1) cross-marketing, 2) hosting an event, 3) building a support group, and 4) sharing resources.

cross marketing

In any community, there are numerous opportunities for businesses to market their products or services. Here are some examples. A souvenir shop in a tourist community that offers its customers a discount coupon for a local restaurant would have no additional expenses. The restaurant, of course, returns the favor by giving its customers a discount coupon. A graphic designer, for example, might cross-promote services with a local printer or sign maker. An oil change store might give a coupon to a car dealer and vice versa. The key is to find reputable businesses that truly view this type of cross-promotion as a win-win activity.

Organization of an event

There are many ways for a group of companies to organize an event that will help each company grow. Farmers markets, street fairs, community events, etc. they are a great way for local merchants to see the benefits of cooperating to bring customers to the area. A health club, for example, could organize a health fair in association with a local health clinic. A local restaurant and wine shop could collaborate to have monthly wine and food tasting events. A web development company might partner with a local photographer to demonstrate web capture techniques.

Form a support group

It’s easy to isolate yourself as a small business owner. Between the wee hours, the stress, and the need to do payroll, there seems to be little time for anything else. Not surprisingly, the small business owner next door, down the street and across town, is probably dealing with many of the same issues. One way to network and support other small businesses is to form a weekly or monthly coffee club. You could even feature a theme of the week and brainstorm one of them each week.

SharingResources

A great way to reduce expenses and strengthen your systems is to share resources. Even something as simple as buying in bulk and splitting the order can have a huge impact on your bottom line. Almost everything is less expensive in bulk, but many small businesses don’t have the need, space, or financial resources to buy, say, one pallet of paper, but three or perhaps. Another thing that many companies can share is business intelligence. This could include a mailing list or information on trusted vendors.

Sharing resources or expertise requires mutual trust and understanding. Over time, however, the strategies in this article can strengthen a small business’s connections to the broader business community, drive operational efficiencies, and help build a better marketing initiative.