April 14, 2025 • 51 mins
In this revenue-boosting episode, Michael and Chuki reveal why businesses struggle to grow through traditional marketing alone. You'll discover the "Strategic Partnership Formula" that enables businesses to leverage other companies' customer bases to increase leads and sales without additional marketing costs. Learn how to identify the perfect potential partners, structure win-win arrangements that create value for all parties, and implement systems that generate consistent revenue streams.
Powerful Business Strategies is broadcast live Mondays at 12 Noon ET Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Powerful Business Strategies is viewed on Talk 4 TV (www.talk4tv.com).
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Powerful Business Strategies is broadcast live Mondays at 12 Noon ET Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Powerful Business Strategies is viewed on Talk 4 TV (www.talk4tv.com).
Powerful Business Strategies Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
Become a supporter of this podcast: https://www.spreaker.com/podcast/powerful-business-strategies--6198916/support.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The topics and opinions expressed in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicitor implies shall be extended to W FOURCY Radio
or it's employees are affiliates. Any questions or comments should
be directed to those show hosts. Thank you for choosing
(00:21):
W FOURCY Radio.
Speaker 2 (00:27):
Welcome to Powerful Business Strategies, where you will find out
that everything you have ever learned about growing your business
is wrong. Finally, a show where you'll learn the right
way to grow your business by learning business and financial
strategies that your competition isn't doing. And now here is
your host. President of NeXTSTEP CFO Michael Barbarita and joining
(00:52):
Michael for today's show as an executive moderator is chooky obio.
Speaker 3 (01:01):
Yes, this is schukin.
Speaker 4 (01:02):
I believe that gratitude is undefeated and growth is about
the next step. It is an honor for me to
moderate today's discussion with my good friend Michael.
Speaker 3 (01:11):
Michael, how are you that's ask the CHK, how you doing?
How are you choke? Can you hear me? Up? Yup? Frozen?
Speaker 5 (01:21):
Well, my name is Michael baberta president of Next Step CFO.
Next Step CFO is a strategic implementation firm and fractional
CFO firm, and business owners hire us to double and
triple at profit using business and financial strategies that their
competition isn't doing.
Speaker 3 (01:38):
And our vision is to ensure that.
Speaker 5 (01:40):
Overwhelmed business owners achieve the time, freedom, and consistent profits to.
Speaker 3 (01:44):
Build a legacy and the life they desire.
Speaker 5 (01:47):
Our mission is dedicated to guiding small business owners to
leveraging their time, exploding their profits, and to build a
meaningful legacy. And this show powerful business Strategies in our
book of the same name, is a step towards accomplishing
that vision edission. And so with that, I'd like to
hand it back to my co author and moderate it
for today's show to key Obio.
Speaker 3 (02:07):
Michael.
Speaker 4 (02:08):
I mean, we've got so much insight packed into today's episode.
We may break the circuit, we may break the internet. Michael,
Just so you know, I think we already have exactly
very energized about today's episode it's titled Strategic Partnerships and
joint Ventures Multiply your revenue without spending more on marketing.
(02:28):
And just a quick disclaimer before we really get started,
Michael and I are both affiliated with a number of
different organizations. I currently serve as a managing director of
business development for Betterprice of business focused law firm. But
Look in addition to that, it's truly in honor to
collaborate with Michael to moderate business roundtables and document the
(02:49):
insights from these roundtables as part of our book, Powerful
Business Strategies.
Speaker 3 (02:54):
Please note that the views.
Speaker 4 (02:55):
Expressed on this show are our personal views based on
successful experiences. My mission as a fearless moderator to ask
the right questions to help you, the listener, learn the
best business strategies that the competition isn't doing. Michael back
over to you.
Speaker 5 (03:13):
Thank you, chokey So business owners, you know, I see
the constant pressure that you're under, the never ending demands
to generate more leads, to convert more customers and grow
your revenue. You're pouring money into marketing that delivers diminishing
returns while your competitors seem to be everywhere. But what
(03:33):
if I told you there's a growth strategy hiding in
plain sight, one that doesn't require more ad spend, more
content recreation, or more social media posting. A strategy, a
strategy that lets you tap into established relationships and trust
that other businesses have already built. And the most successful
(03:56):
businesses aren't those with the marketing the biggest marketing budgets.
They're the ones that master the art of strategic partnerships.
Companies like Apple, Starbucks, and Amazon didn't reach the top alone.
They leveraged powerful alliances that multiplied their reach and accelerated
(04:16):
their growth. Today, I'm going to show you how even
small businesses can implement these same partnership principles to dramatically
increase revenue without spending another dollar on traditional marketing. So
let's unlock that game changing growth strategy together. So let's
start right out with a fundamental truth about growing a business.
(04:39):
Traditional marketing is getting more expensive and less effective every year.
Digital ad costs have increased by forty percent of the
past five years.
Speaker 3 (04:50):
Social media reach continues to decline as.
Speaker 5 (04:52):
Platforms prioritize paid content and consumers are bombarded with thousands
of marketing mesas such as Daily Making It harder than
ever to break to the noise. This puts business owners
in a difficult position. You need to grow, but the
traditional paths to growth, like advertising more, hiring more salespeople,
(05:15):
creating more content, all require significant investment with increasing uncertain returns.
The good news is there's a powerful alternative that most
businesses overlook, and that.
Speaker 3 (05:29):
Is strategic partnerships and joint ventures.
Speaker 5 (05:33):
This approach allows you to leverage the most valuable asset
other businesses have already built, and that is trusted relationships
with customers who need what you offer.
Speaker 3 (05:45):
Think about it this way.
Speaker 5 (05:47):
Would you rather try to convince a complete stranger to
buy from you or someone that or have someone they
already know and trust recommend your product or service? Now
the latter is not only more effective, but typically cost
a fraction of traditional marketing. So let me share a
quick example. So a home remodeling contractor was spending five
(06:11):
thousand dollars monthly on advertising with of course, mediocre results.
He identified that his ideal customer had recently purchased homes
and were likely working with mortgage brokers, real estate agents,
and insurance providers. Now he developed a simple referral partnership
with five mortgage brokers who would introduce his services to
(06:34):
new home buyers. Now, within ninety days, these partnerships were
generating twice the leads his advertising had produced at zero
additional costs, and within six months he had completely eliminated
his advertising budget while growing his business by forty percent.
Speaker 3 (06:54):
Wow. This isn't an isolated.
Speaker 5 (06:57):
Success story virtually every industry because they're based on the
timeless principle and the most that the most valuable business
asset is trusted relationships with customers. And when you can
tap into relationships other businesses have already built, you create
(07:17):
a shortcut to growth. Now you might be thinking that
this sounds great, but why would other businesses want to
partner with me?
Speaker 3 (07:27):
Well, the key is creating what I call a mutual
value proposition.
Speaker 5 (07:32):
What I mean by that is these are partnership structures
where everybody wins your business, your partner, uh partner's business,
and most importantly, the customer. Strategic partnerships an't about convincing
someone to promote your business out of the goodness of
their heart. Systematic arrangements where your partner receives meaningful value,
(07:58):
albeit financial rewards, enhance customer relationships. Competitive differentiation or other benefits,
including referrals for connecting with you with connecting you with
their customers. On today's show, I'm walking through our proven
system for identifying, approaching, and structuring profitable partnerships that can
(08:22):
dramatically accelerate business growth without the escalating costs of traditional marketing.
Speaker 4 (08:27):
Michael, it's interesting, right, I mean, you really struck a
chord here, Like this concept of strategic partnership sounds powerful.
But I'm curious though, what types of businesses can benefit
from this approach and is it limited to certain industries
or company sizes.
Speaker 5 (08:44):
Yeah, that's really a great question, Shookey. So one of
the most powerful aspects of strategic partnerships is that they
work for virtually any type of business, regardless of size
or industry. And I've seen successful partnerships for everything from
a one person service business right up to multimillion dollar
manufacturing companies, and for service businesses like consultants or.
Speaker 3 (09:06):
Accountants or marketing agencies.
Speaker 5 (09:08):
Partnerships with complementary service providers who serve the same client
base can be really productive. For example, a web designer
partnering with a digital marketing agency or a business coach
partnering with CFO services like ours, and of course we
do both CFO services and strategic quotation. And for retailers
and e commerce businesses, partnerships with non competing businesses that
(09:33):
serve the same customer demographic can drive significant foot traffic
or online sales. A boutique clothing store might partner with
a jewelry store, or a pet supply e commerce site
might partner with a pet insurance provider. And for manufacturers
or wholesal wholesalers, partnerships with retailers, installers or service providers
(09:59):
who interact directly with end users can open it entirely
new distribution change cannels with an interior designer, or a
food producer might partner.
Speaker 3 (10:14):
With local restaurants.
Speaker 5 (10:15):
The key insight is that strategic partnerships aren't about the
size of your business. They're about the value you can
provide to your partner's customers, and of course vice versa.
Even a solopreneur can forge powerful partnerships with much larger
organizations if they solve a significant problem for those partners customers.
(10:38):
In fact, smaller businesses often have advantages in partnership development
because they can move quickly.
Speaker 3 (10:45):
They can customize their offerings for.
Speaker 5 (10:46):
Specific partners partner's needs, and provide personalized attention that larger
competitors simply can't match.
Speaker 3 (10:55):
So whether you're a.
Speaker 5 (10:56):
Startup or an established business, a local service provider, or
even an international manufacturer, strategic partnerships can be a game
changing growth strategy when correctly implemented.
Speaker 3 (11:09):
So now let's dive into that.
Speaker 5 (11:11):
First step of creating successful strategic partnerships, identifying your ideal
potential partners. Many business owners make the critical mistake of
approaching partnership development randomly, reaching out to any business that
seems remotely related to theirs or that happens to be convenient.
(11:31):
This is a scattershot approach really produces anything meaningful.
Speaker 3 (11:36):
So effective partnership.
Speaker 5 (11:38):
Strategy begins with a systematic approach to identifying potential partners
who can provide maximum value. I call this the concentric
circles methodology.
Speaker 3 (11:51):
Let me explain this.
Speaker 5 (11:53):
Imagine your business at the center of target, with three
circles expanding outward, and each circle represents a category of
potential partners, with those closest to the center typically offering
the greatest partnership potential. So the inmost circle contains what
(12:15):
I call natural allies. These are businesses that serve the
exact same customers as you, but offer complementary, non competing.
Speaker 3 (12:26):
Products or services.
Speaker 5 (12:27):
And these businesses are your highest priority partnership targets because
they have established and already assembled the precise audience that
you want to reach.
Speaker 3 (12:40):
For example, we'll give a quick example.
Speaker 5 (12:41):
If you're a financial advisor specializing in retirement planning, your
natural ally might include an a state planning attorney, or
a medicare insurance specialist or a senior living consultant. All
serve the same retirement age clientele, but offer services that
complement rather than compete with yours. The second circle contains
(13:06):
adjacent providers. These are businesses that serve customers who are
similar to yours, but may very well be at a
different stage in their journey. And these partnerships require a
bit more creativity but can be tremendously valuable. For example,
if a wedding photographer. If you're a wedding photographer, adjacent
(13:28):
providers might include engagement ring jewelers who serve their who
serve your ideal customer before they before they need you,
or a newlywed financial advisor who serves those same customers
after you. While these businesses don't target the exact same
customers you, the significant overlap in the customer profile. And
(13:52):
the third circle contains value amplifiers. These are businesses that
don't necessarily share your customer base, but can significantly enhance
the value of your offering through collaboration. These partnerships are
more complex, but can create really powerful competitive advantage. For example,
(14:13):
if you're a corporate training company, a value amplifier might
be a software platform that could track the implementation of
your training methods, adding a data driven component to your
service that sets you apart from your competitors actually adding things.
So once you've mapped potential partners across these three circles,
(14:36):
the next step is prioritization, so you see not all
potential partners offer equal value. You want to focus your
partnership development efforts on businesses that possess three key characteristics.
The first is they have a substantial relationship. They have
substantial relationship assets where they've established trusted relationships with a
(14:59):
six significant number of your ideal customers, and the more
extensive and trusted these relationships are, the more valuable the
potential partnership. Second, they have compatible business values. And what
do I mean by that is similar standards of quality,
similar standards of customers.
Speaker 3 (15:19):
Service, and ethics.
Speaker 5 (15:21):
Partnering with businesses whose values don't line up with yours
can damage your reputation and create operational friction. Ah And Third,
they have clear reciprocity potential, so you find obvious ways
they can benefit.
Speaker 3 (15:40):
From a partnership with you, because the.
Speaker 5 (15:43):
Strongest partnerships create substantial value for both parties. And let
me share a case study that illustrates this process in action. So,
a high end kitchen renovation company was struggling to generate
qualified leads well. Using the concentric circles methodology, they identified
several categories of potential partners. First, their natural allies, and
(16:08):
they included interior designers, real estate agents, especially those specializing
in luxury homes, and high end appliance retailers, all of
whom served the exact affluent homeowners of the kitchen renovation
company client was targeting. And then the next set of
(16:31):
circles are circle is the adjacent providers, including custom home
builders who served similar customers earlier in their journey, and
home automation companies who served the customer the same customers
later on, and then the value amplifiers included a sustainable
material supplier that could help differentiate their renovations from competitors.
Speaker 3 (16:55):
And after prioritizing.
Speaker 5 (16:58):
Based on these relationship asset, business values, and reciprocity potential,
the Kitchen Renovation Company focused the partnership development efforts on
interior designers because they had the most trusted relationships with
their ideal customers and shared the customers commitment to quality
and could clearly benefit from having a reliable renovation partner
(17:21):
to recommend, and within six months partnerships with just five
interior designers, which generating more qualified leads than all of
the previous marketing.
Speaker 3 (17:33):
Efforts combined at a fraction of the cost. Wow Yeah, it.
Speaker 5 (17:39):
Was amazing, and the company eventually developed a formal designer
partnership program that became their primary growth engine, allowing them
to reduce marketing expenses by sixty percent while increasing revenue
by forty percent. And the key insight from this example
is that strategic partner selection is at random. It's a
(18:05):
systematic process of identifying businesses with the right combination of
customer relationships, value alignment, and reciprocity potential and when you
focus your partnership efforts on the right targets results they
can be amazing. And now, once you've identified potential partners,
(18:26):
the next critical step is approaching them effectively, and this
is where most partnership initiatives fail. Cold outreach with a centered,
self centered pitch really works, no matter.
Speaker 3 (18:41):
How good your offering might be.
Speaker 5 (18:43):
Instead, I recommend the value first approach, which is a
four step framework for initiating partnership conversations that consistently produce
for results. So Step one is research and customization. Before
reaching out to any potential partner, deeply research their business,
(19:04):
their customers, and their challenges. Your initial approach should demonstrate
that you've done your homework and understand their specific situation
that will increase the chances of engagement. Step two is
value led outreach. Your first contact should focus on delivering
(19:25):
some type of value, not asking for anything. This might
be sharing an industry insight, maybe making a valuable introduction,
and it doesn't have to be a customer. It could
be a resource, which is next, providing a resource that
addresses a challenge that you know they face based on
your research. Step three is the exploratory conversation exploratory conversation.
(19:48):
When you do a secure and you secure a meeting
and resist the urge to a meeting, immediately pitch your
partnership idea and instead ask thoughtful questions about their business goals,
their challenges, and their customer needs. Let the partnership concept
emerge naturally from this conversation, and then step four is
(20:10):
the co created proposal. Rather than presenting a predetermined partnership structure,
collaborate with your potential partner to design and engage an
arrangement that specifically addresses their goals and concerns. The value
first approach dramatically improves partnership conversion rates because it positions
(20:31):
you as.
Speaker 3 (20:32):
A thoughtful potential ally.
Speaker 5 (20:35):
Not just another vendor trying to access their customer base.
Speaker 4 (20:40):
Michael, look, I'm intrigued by this, and our audience as well.
Just judging from some of the commentary, they're intrigued as well.
Speaker 3 (20:47):
Question for you.
Speaker 4 (20:48):
You mentioned the importance of having reciprocity potential. Great phrase,
by the way, and you mentioned this with potential partners.
Now can you provide some specific exact amples of the
types of value a business might offer to make a
partnership attractive to another company.
Speaker 3 (21:07):
Yeah, absolutely tricky.
Speaker 5 (21:09):
So reciprocity is the cornerstone of successful partnerships, and there
are numerous ways businesses can create value for potential partners
beyond the obvious financial incentives. So let me outline the
seven most effective forms of reciprocal value. First, its direct
revenue sharing. That's the most straightforward form of reciprocity. This
(21:35):
can include referral fees, commission structures, or revenue sharing arrangements
for business generated through the partnership a financial planner, often
accounting firms ten percent of the first year's fees for
any clients referring creating a meaningful additional revenue stream for
those partners. And we always always recommend that your strategic
(21:56):
partner relationship includes some type of direct revenue share. Second,
enhanced customer experience, providing services that help your partner deliver
greater value to their clients. So a home security company
partner with real estate agents to offer complementary security.
Speaker 3 (22:13):
Assessments for new home buyers.
Speaker 5 (22:15):
This gave the agents a value added service to offer clients,
enhancing their relationship while creating sales opportunities.
Speaker 3 (22:22):
For the security company.
Speaker 5 (22:23):
And Third, it's really something how how these how this
framework really helps reduce advertising costs and builds revenue. Third
is operational support, helping partners improve their internal operations or
reduce costs. So if virtual assistance service offered, law firms
(22:46):
free administrative support for tasks related to their mutual clients,
saving the firm's valuable time while demonstrating the virtual assistance capabilities.
Boy Access to specialized resource, so providing partners with access
to tools, technology, or expertise that they couldn't obtain easily elsewhere,
(23:09):
a digital marketing agency gave their partners access to proprietary
market research and competitors' analysis tools, creating golden handcuffs that
strengthen the relationship. Fifth co marketing opportunities, helping partners enhance
their visibility and credibility. So a business coach partner with
(23:32):
a local bank to co host educational workshops for entrepreneurs,
and this gave the bank valuable community engagement opportunities that
they wouldn't have had otherwise, while generating leads for the coach.
Sixth is product enhancement, so improving partners existing offerings through
(23:52):
integration with your services. So a customer service software company
created specialized templates and workflows for different industries, making their
partners recommendations much more valuable to their clients. And seventh,
competitive differentiation. So this is helping partners stand out in
their markets. A commercial insurance broker developed industry specific risk
(24:16):
management programs that their partners industry associations could offer as
exclusive member benefits, helping them increase member retention. You know,
the most powerful partnerships typically combine multiple forms of value.
For example, a partnership might include both revenue sharing and
enhance customer experience elements, creating multi dimensional benefits for both parties.
(24:40):
Those are the most successful. The key to identifying the
right reciprocity elements is understanding your potential partner strategic priorities,
not just their immediate financial interests. See during exploratory conversations,
ask questions like what are your biggest channe and growing
your business? Or how do you measure success with your customers?
(25:05):
Their answers will reveal the forms of value that they'll
find most compelling.
Speaker 4 (25:12):
That truly is compelling. Michael, a quick question from the audience,
if you've got a minute, sure this is interesting. What
are some common mistakes that businesses make when first attempting
to establish strategic partnerships.
Speaker 3 (25:29):
That is a good question.
Speaker 5 (25:30):
Well, I've observed seven common mistakes that derail partnership initiatives,
even when the fundamental strategy is sound.
Speaker 3 (25:40):
First is the it's the all about me approach.
Speaker 5 (25:44):
Too many businesses lead with what they want from the
partnership rather than understanding their potential partner's needs. First, I
worked with a marketing agency that couldn't understand why their
partnership outreach was failing until we reviewed a pitch which
talked exclusively about the leads that they wanted without addressing
(26:05):
what partners would gain.
Speaker 3 (26:07):
Second is an adequate due diligence.
Speaker 5 (26:10):
Rushing into partnerships without thoroughly researching the potential partners can
lead to misaligned expectations and totally waste that effort. A
client in the fitness industry enthusiastically partnering with an nutritional
supplement company, only to discovered reputations reputation issues that reflected
poorly on their own brand. Third is vague expectations. Successful
(26:34):
partnerships need clear, measurable objectives and processes. A financial advisor
created numerous networking partnerships that produced minimal results because there
was no defined system how referrals would flow between the businesses.
Common error or over formalization to formalizing too early, Some
(26:56):
businesses insist on complex agreements were testing the concept, creating
unnecessary friction.
Speaker 3 (27:03):
Start with a pilot program to.
Speaker 5 (27:06):
Establish trust and demonstrate value before expanding to more comprehensive arrangements.
Speaker 3 (27:11):
Fifth is under investment in partner support.
Speaker 5 (27:14):
So many businesses fail to provide addequate training materials and
ongoing communication to help partners succeed. So a home services
company created an innovative referral program, but didn't train their
partner's staff on how to identify appropriate referral opportunities, and
that's severely limited results. And six is measuring the wrong metrics,
(27:39):
focusing exclusively on immediate revenue that can undermine long term
partnership value. So before we continue, let's take a ninety
second break.
Speaker 6 (27:53):
Hey, dear business owners, let me ask you something. Are
you tied of blending in with your competitors? Frustrated slow
growth and slim margins. Well, I've gotten news for you.
Everything you've ever learned about growing your business is wrong.
Don't worry. I'm here to let you in on a
secret weapon. Your position of market dominance. It's what sets
(28:15):
you apart, makes you irreplaceable, and has customers lining up
at your door. My name is Michael Barbarrita from Next
Step CFO. I know what you're thinking. Sounds great, Michael,
How do I find my position of market dominance? Well,
that's exactly why we've created our game changing impleitation program
called Next Step to Market Dominance.
Speaker 3 (28:37):
In just ninety days, we'll.
Speaker 6 (28:38):
Guide you step by step to a position of market
dominance by uncovering your unique strengths that competitors can't touch.
By crafting a message that resonates deeply with your ideal customer,
by building a strategy that turns you into the go
to expert in your field.
Speaker 3 (28:53):
Now this is in theory.
Speaker 6 (28:55):
These are battle tests and strategies that have helped businesses
like you. It is double triple and coordinate ruple their revenue.
Don't let another quarter go by struggling to standout. It's
time to dominate your market period. Go to NEXTSTEPCFO dot net,
forward slash contact, fill out the form and in the
message section put the word dominate or call us at
(29:18):
seven eight one three two six three A two two.
That's next STEPCFO, dot net, Forward slash contact or call
us at seven eight one three two six three A
two two Welcome back, And remember, if you're driving, you
can pick up the replay at our website Powerful Business
(29:38):
Strategies dot com.
Speaker 3 (29:40):
Any any show is on.
Speaker 5 (29:41):
All the shows that we've had are on that website,
So if you'd like to hear a specific show, just
go to that website and download it. So now let's
explore the critical elements of a structuring successful partnership agreements
that create sustainable value for both parties, all or all
parties if it's multiples partnership. The most common mistake I
(30:02):
see in partnership development is jumping straight to stand and
then revenue more creative and potentially more valuable structures. While
financial incentives are important, the most powerful strategies go beyond
simple commission arrangements to create multi dimensional value. And so
I recommend using what I call the partnership value matrix.
(30:24):
And that's a framework for designing partnership structures that align
incentives and maximize results. This matrix has four quandrance, each
representing a different type of value exchange. So the first
quadrant is financial exchange and This includes revenue sharing, referral fees,
commission structures, and other monetary incentives. While these are important,
(30:47):
that just the beginning of the value that the partnership
brings to each partner. For example, a home services company
offered real estate agents one hundred dollars for each referred
client who completed a a service and this was effective,
but when they added the other quadrants of value, partnership
results increased dramatically, so it wasn't just a financial The
(31:11):
second quadrant is experience enhancement. This focuses on how the
partnership improves the experience for the end customer, creating value
for both partners brands. Continuing with our home service example,
he created a new homeowner welcome package that agents could
give to their buyers, including priorities, scheduling, extended warranties, and
(31:33):
seasonal maintenance reminders. This added tangible value to the agent's
client relationships while establishing the service company as a logical provider.
The third quadrant is operational integration. This involves creating systems
and processes that make the partnership function smoothly for both businesses.
(31:55):
That home services company, he developed an agent portal where
referrals could be tracked, communications could be managed, and reports
generated automatically. We also created a coporated materials and established
regular check in processes. These operational elements reduce friction and
(32:16):
increased partner engagement. That's what you want, increased partner engagement.
The fourth quadrant is strategic alignment. This ensures that partnership
supports both companies and their long term objectives beyond immediate revenue.
So in our example, he established quarterly strategy sessions where
(32:36):
the home services company shared neighborhood specific data with real
estate agents like average service request by home agent type,
helping agents refine their listing strategies. This position the service
company as a strategic resource, not just a vendor. And
then when all quadrants are addressed in your partnership structure,
(32:58):
you'll create what I call value resistance, a relationship that
can withstand competitive challenges and changing market conditions because it's
built on multiple layers of mutual benefit. Now let's talk
about how to formalize these arrangements without killing the relationship
with well excessive paperwork and restrictions. I recommend a three
(33:24):
phase approach to partnership development. So Phase one is the
pilot program. This is a limited scope test of the
partnership concept with minimal formal structure, and this lasts usually
about thirty to ninety days and focuses on validating the
core value exchange and by the way, throughout this process,
(33:44):
both parties are.
Speaker 3 (33:45):
Engaged in getting this accomplished.
Speaker 5 (33:48):
Nice For example, a marketing agency might work with three
accounting firms to test a referral program before investing in
the full partnership infrastructure, and this allows both parties to
experience the partnership benefits with limited risk. Phase two is
the structured program, a more formalized arrangement with defined processes, expectations,
(34:11):
and define compensation structures. This typically spans six to twelve
months and includes regular performance reviews and adjustments. At this stage,
the marketing agency might develop specialized materials for accounting partners
or creating dedicated partner support system and establish regular communication channels.
(34:33):
Three is the strategic alliance, a deeply integrated relationship where
both companies aligned significant portions of their operations and strategy
around the partnership, and these relationships typically extend over years
and may include exclusive arrangements or co developed offerings. Our
(34:54):
marketing agency might now create industry specific service packages exclusively
for accounting clients, integrate their reporting systems with the accounting
firms platform, or even co locate staff. And now every
partnership needs toss progress through all three phases. Many successful
(35:14):
partnerships remain at the structured program level indefinitely. And the
key is is matching the level of formalization to the
partnership strategic importance and performance. And let me share an
example of that, and it illustrates affective partnership structuring. A
(35:35):
boutique wealth management firm was struggling to grow despite excellent
performance because they lacked the marketing resources of larger competitors.
Speaker 3 (35:44):
Using the Partnership.
Speaker 5 (35:45):
Value Matrix, they developed a comprehensive program for CPAs and attorneys.
In the financial exchange quadrant, they offered a tiered revenue
sharing structure that increased as the partner referred more business,
creating growing incentives for engagement. In the experience enhancement quadrant,
(36:06):
they created co branded financial education workshops that partners could
offer their clients, positioning them as.
Speaker 3 (36:14):
More comprehensive advisors.
Speaker 5 (36:17):
In the operational integration quadrant, he developed a secure client
introduction process that respected privacy regulations while making referrals seamless.
They also created automated reporting so partners could track their
client satisfaction, and in the strategic alignment quadrant, they offered
(36:41):
partners access to specialized expertise for complex client situations, even
if they weren't directly revenue generating. They launched with a
ninety day pilot program involving three partners, and they refined
the program based on their feedback and then expanded it
(37:01):
to a structured program with fifteen partners. One of the
beauties of these programs that you can actually invite other
partners as long as they have and qualify with the
methodologies we've been discussing, and within eighteen months these fifteen
partners we're generating sixty five percent of the verb's new clients,
(37:23):
far more efficient than previous marketing efforts. And the key
insight from this example is that comprehensive partnership design addresses
multiple dimensions of value, creating relationships that both parties are
invested in and maintaining and also growing. Now, let's discuss
the importance of systematic management once partnerships are established, so
(37:47):
even the best designed partnerships will underperform without consistent attention
and nurturing. I recommend implementing what I call a partnership
success system. This is a structured approach to managing partnerships
for maximum results, and the system has five components.
Speaker 3 (38:07):
First, this is.
Speaker 5 (38:09):
So important because we want to tract everything clear metrics
and reporting. Both partners should have visibility into key performance indicators.
A construction company provided monthly reports to their architect partners
showing leads received, why just completed as a result, and
client satisfaction scores. And this transparency build trust and highlighted
(38:33):
the partnership's value. Second, regular communication rhythms, so established consistent
check ins at appropriate levels and intervals. Some partnerships require
weekly calls, while others might need only quarterly reviews or whatever.
The frequency consistency is key to relationship maintenance. Third is
(38:59):
continuous education and enablement. Regularly updating partners on your offerts,
providing training on referral identification and share market insights that
helped them succeed. A software company that I advised created
a quarterly partner update webinar that consistently achieved eighty percent
(39:21):
attendance because it provided genuine value. Fourth, recognition and incentives,
acknowledge and reward partner performance beyond the basic financial arrangement.
Speaker 3 (39:36):
That's important.
Speaker 5 (39:36):
Fifth, feedback and evolution. Systematically gathered partner input and use
it to improve the program. Potentional services firm that I
worked with implemented bi annual partner surveys that led to
several program enhancements, increasing referrals by forty percent the following year. Together,
(39:59):
these five elements create a partnership management approach that transforms
one time arrangements into sustainable growth engines.
Speaker 4 (40:09):
You know, Michael, this is fascinating, right, and I want
to pick up on one of the concepts that you
touched on, so you emphasize the importance of creating multi
dimensional value in partnerships. Could you share a specific example
or maybe two, of how a small business with limited
resources successfully implemented this approach.
Speaker 5 (40:28):
That's an interesting question to bee, And the main reason
why it's an interesting question is that dress it actually
addresses a very common concern.
Speaker 3 (40:37):
Yes, small business.
Speaker 5 (40:38):
Owners often believe they lack of resources for sophisticated partnership programs. Absolutely,
but some of the most creative approaches I've seen have
come from those resource constraint on entrepreneurs, and let me
give you a quick example. A solo interior designer who
(41:02):
had exceptional talent but a minimum marketing budget identified high
end real estate agents as ideal partners who already had
relationships with home buyers likely to need design services, and
despite their limited resources, she created multi dimensional.
Speaker 3 (41:23):
Value across all four quadrants.
Speaker 5 (41:26):
In the financial Exchange quadrant, rather than offering cash referral fees,
which she couldn't afford, she created a Designer for a
Day certificate that agents could give to their luxury buyers,
and this had a fifteen hundred dollars retail value but
cost her only her time. For each client who converted
(41:46):
to a full project, which was about sixty percent of them,
she provided the agent with a five hundred dollars gift
card to a high end restaurant, and that caused the
chief could easily absorb within her project margins. So in
the Experienced Enhancement quadrant, she created a new home visualization Guide,
(42:07):
which was a beautiful co branded booklet with design tips,
space planning worksheets, and inspirational photos, and agents could give
these to the clients at closing as a high perced
value gift that showcased both the agents and the designers' expertise.
And in the operational integration quadrant, she built a simple
(42:30):
process where agents could schedule a fifteen minute video call
with her before showing luxury properties. She would provide quick
insights about each home's design potential, giving agents talking points
that impressed perspective buyers. And this required minimal time but
(42:51):
significantly enhanced the agent's presentation. And in the strategic alignment quadrant,
she offered the stage the agent's most important listings using
items from her inventory. While this took just a few
hours per month, it helped agents sell houses faster and
at higher price. It's creating strategic value far beyond the
(43:14):
immediate design. So can we just take one quick question
from a listener, Chikie.
Speaker 3 (43:22):
We can't.
Speaker 4 (43:23):
I mean, it's funny our listen is always asking us
to maybe take more questions.
Speaker 3 (43:28):
Here's one out.
Speaker 4 (43:28):
How do you recommend businesses measure the ROI of their
strategic partnerships, particularly compared to other marketing channels.
Speaker 5 (43:37):
Well, that is a critical question because partnership oury measurement
requires a more nuanced approach rather than traditional marketing metrics
and I recommend a three ten approach.
Speaker 3 (43:50):
The first is direct revenue metrics.
Speaker 5 (43:53):
This is about customer acquisition costs for both partners, conversion rates,
average transaction value, and customer lifetime value. And then a second,
the second one is a relationship relationship value metrics. These
these measure the broader business impact like sales cycle length,
(44:15):
retention rates for partners, cross selling success with partnership clients,
and referral generation from partnership sourced clients.
Speaker 3 (44:24):
The third is strategic position metrics. These track how partnerships
affect your.
Speaker 5 (44:31):
Market presence, so the access to new market segments, the
brand association benefits, the competitive installation that's in partnerships that
block competitors, and the innovation opportunities that emerge from partner relationships.
And so, Chikey, I was wondering if you could go
right into compliments.
Speaker 4 (44:52):
Right absolutely, so today and I'll complement segments. We want
to highlight three remarkable professionals, Michael, who are combined their
unique talents to create something truly special. This is a
type of collaboration, Michael, that you and I we often
talk about and we've captured in our book Powerful Business Strategies.
So here are the professionals. First Stacey Kreamer.
Speaker 5 (45:14):
She is a.
Speaker 4 (45:14):
Licensed Mental health counselor at Stacey Creamer l MHC, and
she's bringing her expertise in mental wellness and therapeutic techniques
to the table. Second professional Joan Didion. She's a skilled
practitioner behind Didian Acupuncture. She offers her deep knowledge Michael
(45:37):
of how traditional Eastern medicine can rebalance our energy and
reduce physical manifestations of stress. And then the third professional
is Sharman O'Keeffe. She's a dynamic force driving Charman Fitness.
She lends her talents to understand and how physical movement
(45:57):
and exercise are powerful tools from managing stress and improving
overall wellbeing. Will Michael get this? Stacey, Joan and Charman. Together,
these three wellness experts are developing a product providing an innovative,
comprehensive approach to stress management which integrates mental health counseling, acupuncture,
(46:24):
and fitness straining into one comprehensive program. What we find
most impressive about this, Michael, I've got to share this
with the audience. These three professionals are leveraging each other's
strengths in a very complementary and synergistic way as part
of a joint venture. So instead of competing, they are
collaborating to create a signature product that delivers more value
(46:47):
to each of their client base now in today's high
pressure world, Michael, you and I both noticed. I mean,
their work addressing stress through multiple complementary approaches could not
be more That timing is impeccable. We absolutely want to
commence Stacy, Joan and Charman for their vision in creating
(47:08):
this holistic stress management system, and we truly want to
encourage their ingenuity to continue to develop this very promising venture.
We believe that stress relief as a solution has the
potential to transform the lives of people across multiple communities.
Speaker 3 (47:28):
Michael, you can find out more.
Speaker 4 (47:30):
About Stacy on her website at Staceykreamer l MHC dot com.
You can find out more about Joan on her website
at Didianacupuncture dot com. You can find out more about
Sherman on her website our Strmanfitness dot com. Back over
to you, Michael.
Speaker 3 (47:46):
Thank you, Chicky.
Speaker 5 (47:47):
You know the interesting thing is we didn't even talk
about that today, how you could develop products through strategic relationships.
Speaker 3 (47:53):
My God, we have invested that.
Speaker 5 (47:56):
Thank God that Stacy Joan and Sharp and added that
to our show.
Speaker 4 (48:03):
Absolutely.
Speaker 5 (48:03):
So, as we wrap up today's episode on strategic Partnerships
and joint ventures, let me summarize the key insights we covered.
So we introduced a systematic approach to partnership development that
can dramatically grow your business without increasing marketing costs. And
this approach includes the three core steps. First, identifying ideal
partners using the concentric circles methodology, we explored how to
(48:28):
natural allies, adjacent providers, and value amplifiers, and then prioritize
potential relationships based on relationship assets, business values and reproprocity
reciprocity potential.
Speaker 3 (48:45):
Yeah got.
Speaker 5 (48:47):
And we also discuss the value first approach to initiating
partnership conversations that consistently produces results. Second, we offered structuring
effective partnership. Using that partnership value matrix, we examine how
to create multi dimensional value across financial exchange, experience enhancement,
(49:08):
operational integration, and strategic alignment.
Speaker 3 (49:11):
And we also explore the three phases of partnership development
from pilot programs to strategic alliances, and the importance of
systematic management through partnership success programs. And what I hope
you take away from today's episode is that strategic partnerships
aren't just another marketing tactic. They are a fundamental business
(49:33):
strategy that can improve your growth trajectory. And when implemented correctly,
partnerships allow you to leverage existing trusted relationships rather than
building them from scratch, and creating greater efficiency and effectiveness
than traditional marketing approaches. And remember that partnership development is
(49:54):
both in art in the science.
Speaker 5 (49:56):
It requires systematic processes and struct should management, but also
relationship skills and creative thinking. The businesses that excel at
partnerships combine method methodol, methodhogic where I'm having I'm having
real problems today, method method execution, general relationship building. And
(50:21):
if you implement just one strategy from today's episode, make
it the partnership value matrix. Looking beyond simple financial arrangements
to create multi dimensional value is the key developing partnerships
that both perform strongly and endure over time. And as
you develop your your own partnership strategy, remember that the
(50:43):
goal isn't quantity but quality. A small number of well
structured activity managed partnerships will generate far more value than
a large network of casual, opportunistic relationships. So to get
a copy of the book Powerful Business Strategies, simply go
to our website www dot NEXTSTEPCFO dot net. It's totally
(51:07):
complementary and until next Monday at noon Eastern time for
Chucky Obio. My name is Michael Barberita, and remember, don't
keep doing what your competition is doing.
Speaker 2 (51:20):
You have been listening to Powerful Business Strategies finding out
that everything you ever learned about growing your business is wrong.
Tune in next week and every week at noon Eastern
time on W four CY Radio with your host Michael
Barbarita of Next Step CFO and moderator Chugy Obio
The topics and opinions expressed in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicitor implies shall be extended to W FOURCY Radio
or it's employees are affiliates. Any questions or comments should
be directed to those show hosts. Thank you for choosing
(00:21):
W FOURCY Radio.
Speaker 2 (00:27):
Welcome to Powerful Business Strategies, where you will find out
that everything you have ever learned about growing your business
is wrong. Finally, a show where you'll learn the right
way to grow your business by learning business and financial
strategies that your competition isn't doing. And now here is
your host. President of NeXTSTEP CFO Michael Barbarita and joining
(00:52):
Michael for today's show as an executive moderator is chooky obio.
Speaker 3 (01:01):
Yes, this is schukin.
Speaker 4 (01:02):
I believe that gratitude is undefeated and growth is about
the next step. It is an honor for me to
moderate today's discussion with my good friend Michael.
Speaker 3 (01:11):
Michael, how are you that's ask the CHK, how you doing?
How are you choke? Can you hear me? Up? Yup? Frozen?
Speaker 5 (01:21):
Well, my name is Michael baberta president of Next Step CFO.
Next Step CFO is a strategic implementation firm and fractional
CFO firm, and business owners hire us to double and
triple at profit using business and financial strategies that their
competition isn't doing.
Speaker 3 (01:38):
And our vision is to ensure that.
Speaker 5 (01:40):
Overwhelmed business owners achieve the time, freedom, and consistent profits to.
Speaker 3 (01:44):
Build a legacy and the life they desire.
Speaker 5 (01:47):
Our mission is dedicated to guiding small business owners to
leveraging their time, exploding their profits, and to build a
meaningful legacy. And this show powerful business Strategies in our
book of the same name, is a step towards accomplishing
that vision edission. And so with that, I'd like to
hand it back to my co author and moderate it
for today's show to key Obio.
Speaker 3 (02:07):
Michael.
Speaker 4 (02:08):
I mean, we've got so much insight packed into today's episode.
We may break the circuit, we may break the internet. Michael,
Just so you know, I think we already have exactly
very energized about today's episode it's titled Strategic Partnerships and
joint Ventures Multiply your revenue without spending more on marketing.
(02:28):
And just a quick disclaimer before we really get started,
Michael and I are both affiliated with a number of
different organizations. I currently serve as a managing director of
business development for Betterprice of business focused law firm. But
Look in addition to that, it's truly in honor to
collaborate with Michael to moderate business roundtables and document the
(02:49):
insights from these roundtables as part of our book, Powerful
Business Strategies.
Speaker 3 (02:54):
Please note that the views.
Speaker 4 (02:55):
Expressed on this show are our personal views based on
successful experiences. My mission as a fearless moderator to ask
the right questions to help you, the listener, learn the
best business strategies that the competition isn't doing. Michael back
over to you.
Speaker 5 (03:13):
Thank you, chokey So business owners, you know, I see
the constant pressure that you're under, the never ending demands
to generate more leads, to convert more customers and grow
your revenue. You're pouring money into marketing that delivers diminishing
returns while your competitors seem to be everywhere. But what
(03:33):
if I told you there's a growth strategy hiding in
plain sight, one that doesn't require more ad spend, more
content recreation, or more social media posting. A strategy, a
strategy that lets you tap into established relationships and trust
that other businesses have already built. And the most successful
(03:56):
businesses aren't those with the marketing the biggest marketing budgets.
They're the ones that master the art of strategic partnerships.
Companies like Apple, Starbucks, and Amazon didn't reach the top alone.
They leveraged powerful alliances that multiplied their reach and accelerated
(04:16):
their growth. Today, I'm going to show you how even
small businesses can implement these same partnership principles to dramatically
increase revenue without spending another dollar on traditional marketing. So
let's unlock that game changing growth strategy together. So let's
start right out with a fundamental truth about growing a business.
(04:39):
Traditional marketing is getting more expensive and less effective every year.
Digital ad costs have increased by forty percent of the
past five years.
Speaker 3 (04:50):
Social media reach continues to decline as.
Speaker 5 (04:52):
Platforms prioritize paid content and consumers are bombarded with thousands
of marketing mesas such as Daily Making It harder than
ever to break to the noise. This puts business owners
in a difficult position. You need to grow, but the
traditional paths to growth, like advertising more, hiring more salespeople,
(05:15):
creating more content, all require significant investment with increasing uncertain returns.
The good news is there's a powerful alternative that most
businesses overlook, and that.
Speaker 3 (05:29):
Is strategic partnerships and joint ventures.
Speaker 5 (05:33):
This approach allows you to leverage the most valuable asset
other businesses have already built, and that is trusted relationships
with customers who need what you offer.
Speaker 3 (05:45):
Think about it this way.
Speaker 5 (05:47):
Would you rather try to convince a complete stranger to
buy from you or someone that or have someone they
already know and trust recommend your product or service? Now
the latter is not only more effective, but typically cost
a fraction of traditional marketing. So let me share a
quick example. So a home remodeling contractor was spending five
(06:11):
thousand dollars monthly on advertising with of course, mediocre results.
He identified that his ideal customer had recently purchased homes
and were likely working with mortgage brokers, real estate agents,
and insurance providers. Now he developed a simple referral partnership
with five mortgage brokers who would introduce his services to
(06:34):
new home buyers. Now, within ninety days, these partnerships were
generating twice the leads his advertising had produced at zero
additional costs, and within six months he had completely eliminated
his advertising budget while growing his business by forty percent.
Speaker 3 (06:54):
Wow. This isn't an isolated.
Speaker 5 (06:57):
Success story virtually every industry because they're based on the
timeless principle and the most that the most valuable business
asset is trusted relationships with customers. And when you can
tap into relationships other businesses have already built, you create
(07:17):
a shortcut to growth. Now you might be thinking that
this sounds great, but why would other businesses want to
partner with me?
Speaker 3 (07:27):
Well, the key is creating what I call a mutual
value proposition.
Speaker 5 (07:32):
What I mean by that is these are partnership structures
where everybody wins your business, your partner, uh partner's business,
and most importantly, the customer. Strategic partnerships an't about convincing
someone to promote your business out of the goodness of
their heart. Systematic arrangements where your partner receives meaningful value,
(07:58):
albeit financial rewards, enhance customer relationships. Competitive differentiation or other benefits,
including referrals for connecting with you with connecting you with
their customers. On today's show, I'm walking through our proven
system for identifying, approaching, and structuring profitable partnerships that can
(08:22):
dramatically accelerate business growth without the escalating costs of traditional marketing.
Speaker 4 (08:27):
Michael, it's interesting, right, I mean, you really struck a
chord here, Like this concept of strategic partnership sounds powerful.
But I'm curious though, what types of businesses can benefit
from this approach and is it limited to certain industries
or company sizes.
Speaker 5 (08:44):
Yeah, that's really a great question, Shookey. So one of
the most powerful aspects of strategic partnerships is that they
work for virtually any type of business, regardless of size
or industry. And I've seen successful partnerships for everything from
a one person service business right up to multimillion dollar
manufacturing companies, and for service businesses like consultants or.
Speaker 3 (09:06):
Accountants or marketing agencies.
Speaker 5 (09:08):
Partnerships with complementary service providers who serve the same client
base can be really productive. For example, a web designer
partnering with a digital marketing agency or a business coach
partnering with CFO services like ours, and of course we
do both CFO services and strategic quotation. And for retailers
and e commerce businesses, partnerships with non competing businesses that
(09:33):
serve the same customer demographic can drive significant foot traffic
or online sales. A boutique clothing store might partner with
a jewelry store, or a pet supply e commerce site
might partner with a pet insurance provider. And for manufacturers
or wholesal wholesalers, partnerships with retailers, installers or service providers
(09:59):
who interact directly with end users can open it entirely
new distribution change cannels with an interior designer, or a
food producer might partner.
Speaker 3 (10:14):
With local restaurants.
Speaker 5 (10:15):
The key insight is that strategic partnerships aren't about the
size of your business. They're about the value you can
provide to your partner's customers, and of course vice versa.
Even a solopreneur can forge powerful partnerships with much larger
organizations if they solve a significant problem for those partners customers.
(10:38):
In fact, smaller businesses often have advantages in partnership development
because they can move quickly.
Speaker 3 (10:45):
They can customize their offerings for.
Speaker 5 (10:46):
Specific partners partner's needs, and provide personalized attention that larger
competitors simply can't match.
Speaker 3 (10:55):
So whether you're a.
Speaker 5 (10:56):
Startup or an established business, a local service provider, or
even an international manufacturer, strategic partnerships can be a game
changing growth strategy when correctly implemented.
Speaker 3 (11:09):
So now let's dive into that.
Speaker 5 (11:11):
First step of creating successful strategic partnerships, identifying your ideal
potential partners. Many business owners make the critical mistake of
approaching partnership development randomly, reaching out to any business that
seems remotely related to theirs or that happens to be convenient.
(11:31):
This is a scattershot approach really produces anything meaningful.
Speaker 3 (11:36):
So effective partnership.
Speaker 5 (11:38):
Strategy begins with a systematic approach to identifying potential partners
who can provide maximum value. I call this the concentric
circles methodology.
Speaker 3 (11:51):
Let me explain this.
Speaker 5 (11:53):
Imagine your business at the center of target, with three
circles expanding outward, and each circle represents a category of
potential partners, with those closest to the center typically offering
the greatest partnership potential. So the inmost circle contains what
(12:15):
I call natural allies. These are businesses that serve the
exact same customers as you, but offer complementary, non competing.
Speaker 3 (12:26):
Products or services.
Speaker 5 (12:27):
And these businesses are your highest priority partnership targets because
they have established and already assembled the precise audience that
you want to reach.
Speaker 3 (12:40):
For example, we'll give a quick example.
Speaker 5 (12:41):
If you're a financial advisor specializing in retirement planning, your
natural ally might include an a state planning attorney, or
a medicare insurance specialist or a senior living consultant. All
serve the same retirement age clientele, but offer services that
complement rather than compete with yours. The second circle contains
(13:06):
adjacent providers. These are businesses that serve customers who are
similar to yours, but may very well be at a
different stage in their journey. And these partnerships require a
bit more creativity but can be tremendously valuable. For example,
if a wedding photographer. If you're a wedding photographer, adjacent
(13:28):
providers might include engagement ring jewelers who serve their who
serve your ideal customer before they before they need you,
or a newlywed financial advisor who serves those same customers
after you. While these businesses don't target the exact same
customers you, the significant overlap in the customer profile. And
(13:52):
the third circle contains value amplifiers. These are businesses that
don't necessarily share your customer base, but can significantly enhance
the value of your offering through collaboration. These partnerships are
more complex, but can create really powerful competitive advantage. For example,
(14:13):
if you're a corporate training company, a value amplifier might
be a software platform that could track the implementation of
your training methods, adding a data driven component to your
service that sets you apart from your competitors actually adding things.
So once you've mapped potential partners across these three circles,
(14:36):
the next step is prioritization, so you see not all
potential partners offer equal value. You want to focus your
partnership development efforts on businesses that possess three key characteristics.
The first is they have a substantial relationship. They have
substantial relationship assets where they've established trusted relationships with a
(14:59):
six significant number of your ideal customers, and the more
extensive and trusted these relationships are, the more valuable the
potential partnership. Second, they have compatible business values. And what
do I mean by that is similar standards of quality,
similar standards of customers.
Speaker 3 (15:19):
Service, and ethics.
Speaker 5 (15:21):
Partnering with businesses whose values don't line up with yours
can damage your reputation and create operational friction. Ah And Third,
they have clear reciprocity potential, so you find obvious ways
they can benefit.
Speaker 3 (15:40):
From a partnership with you, because the.
Speaker 5 (15:43):
Strongest partnerships create substantial value for both parties. And let
me share a case study that illustrates this process in action. So,
a high end kitchen renovation company was struggling to generate
qualified leads well. Using the concentric circles methodology, they identified
several categories of potential partners. First, their natural allies, and
(16:08):
they included interior designers, real estate agents, especially those specializing
in luxury homes, and high end appliance retailers, all of
whom served the exact affluent homeowners of the kitchen renovation
company client was targeting. And then the next set of
(16:31):
circles are circle is the adjacent providers, including custom home
builders who served similar customers earlier in their journey, and
home automation companies who served the customer the same customers
later on, and then the value amplifiers included a sustainable
material supplier that could help differentiate their renovations from competitors.
Speaker 3 (16:55):
And after prioritizing.
Speaker 5 (16:58):
Based on these relationship asset, business values, and reciprocity potential,
the Kitchen Renovation Company focused the partnership development efforts on
interior designers because they had the most trusted relationships with
their ideal customers and shared the customers commitment to quality
and could clearly benefit from having a reliable renovation partner
(17:21):
to recommend, and within six months partnerships with just five
interior designers, which generating more qualified leads than all of
the previous marketing.
Speaker 3 (17:33):
Efforts combined at a fraction of the cost. Wow Yeah, it.
Speaker 5 (17:39):
Was amazing, and the company eventually developed a formal designer
partnership program that became their primary growth engine, allowing them
to reduce marketing expenses by sixty percent while increasing revenue
by forty percent. And the key insight from this example
is that strategic partner selection is at random. It's a
(18:05):
systematic process of identifying businesses with the right combination of
customer relationships, value alignment, and reciprocity potential and when you
focus your partnership efforts on the right targets results they
can be amazing. And now, once you've identified potential partners,
(18:26):
the next critical step is approaching them effectively, and this
is where most partnership initiatives fail. Cold outreach with a centered,
self centered pitch really works, no matter.
Speaker 3 (18:41):
How good your offering might be.
Speaker 5 (18:43):
Instead, I recommend the value first approach, which is a
four step framework for initiating partnership conversations that consistently produce
for results. So Step one is research and customization. Before
reaching out to any potential partner, deeply research their business,
(19:04):
their customers, and their challenges. Your initial approach should demonstrate
that you've done your homework and understand their specific situation
that will increase the chances of engagement. Step two is
value led outreach. Your first contact should focus on delivering
(19:25):
some type of value, not asking for anything. This might
be sharing an industry insight, maybe making a valuable introduction,
and it doesn't have to be a customer. It could
be a resource, which is next, providing a resource that
addresses a challenge that you know they face based on
your research. Step three is the exploratory conversation exploratory conversation.
(19:48):
When you do a secure and you secure a meeting
and resist the urge to a meeting, immediately pitch your
partnership idea and instead ask thoughtful questions about their business goals,
their challenges, and their customer needs. Let the partnership concept
emerge naturally from this conversation, and then step four is
(20:10):
the co created proposal. Rather than presenting a predetermined partnership structure,
collaborate with your potential partner to design and engage an
arrangement that specifically addresses their goals and concerns. The value
first approach dramatically improves partnership conversion rates because it positions
(20:31):
you as.
Speaker 3 (20:32):
A thoughtful potential ally.
Speaker 5 (20:35):
Not just another vendor trying to access their customer base.
Speaker 4 (20:40):
Michael, look, I'm intrigued by this, and our audience as well.
Just judging from some of the commentary, they're intrigued as well.
Speaker 3 (20:47):
Question for you.
Speaker 4 (20:48):
You mentioned the importance of having reciprocity potential. Great phrase,
by the way, and you mentioned this with potential partners.
Now can you provide some specific exact amples of the
types of value a business might offer to make a
partnership attractive to another company.
Speaker 3 (21:07):
Yeah, absolutely tricky.
Speaker 5 (21:09):
So reciprocity is the cornerstone of successful partnerships, and there
are numerous ways businesses can create value for potential partners
beyond the obvious financial incentives. So let me outline the
seven most effective forms of reciprocal value. First, its direct
revenue sharing. That's the most straightforward form of reciprocity. This
(21:35):
can include referral fees, commission structures, or revenue sharing arrangements
for business generated through the partnership a financial planner, often
accounting firms ten percent of the first year's fees for
any clients referring creating a meaningful additional revenue stream for
those partners. And we always always recommend that your strategic
(21:56):
partner relationship includes some type of direct revenue share. Second,
enhanced customer experience, providing services that help your partner deliver
greater value to their clients. So a home security company
partner with real estate agents to offer complementary security.
Speaker 3 (22:13):
Assessments for new home buyers.
Speaker 5 (22:15):
This gave the agents a value added service to offer clients,
enhancing their relationship while creating sales opportunities.
Speaker 3 (22:22):
For the security company.
Speaker 5 (22:23):
And Third, it's really something how how these how this
framework really helps reduce advertising costs and builds revenue. Third
is operational support, helping partners improve their internal operations or
reduce costs. So if virtual assistance service offered, law firms
(22:46):
free administrative support for tasks related to their mutual clients,
saving the firm's valuable time while demonstrating the virtual assistance capabilities.
Boy Access to specialized resource, so providing partners with access
to tools, technology, or expertise that they couldn't obtain easily elsewhere,
(23:09):
a digital marketing agency gave their partners access to proprietary
market research and competitors' analysis tools, creating golden handcuffs that
strengthen the relationship. Fifth co marketing opportunities, helping partners enhance
their visibility and credibility. So a business coach partner with
(23:32):
a local bank to co host educational workshops for entrepreneurs,
and this gave the bank valuable community engagement opportunities that
they wouldn't have had otherwise, while generating leads for the coach.
Sixth is product enhancement, so improving partners existing offerings through
(23:52):
integration with your services. So a customer service software company
created specialized templates and workflows for different industries, making their
partners recommendations much more valuable to their clients. And seventh,
competitive differentiation. So this is helping partners stand out in
their markets. A commercial insurance broker developed industry specific risk
(24:16):
management programs that their partners industry associations could offer as
exclusive member benefits, helping them increase member retention. You know,
the most powerful partnerships typically combine multiple forms of value.
For example, a partnership might include both revenue sharing and
enhance customer experience elements, creating multi dimensional benefits for both parties.
(24:40):
Those are the most successful. The key to identifying the
right reciprocity elements is understanding your potential partner strategic priorities,
not just their immediate financial interests. See during exploratory conversations,
ask questions like what are your biggest channe and growing
your business? Or how do you measure success with your customers?
(25:05):
Their answers will reveal the forms of value that they'll
find most compelling.
Speaker 4 (25:12):
That truly is compelling. Michael, a quick question from the audience,
if you've got a minute, sure this is interesting. What
are some common mistakes that businesses make when first attempting
to establish strategic partnerships.
Speaker 3 (25:29):
That is a good question.
Speaker 5 (25:30):
Well, I've observed seven common mistakes that derail partnership initiatives,
even when the fundamental strategy is sound.
Speaker 3 (25:40):
First is the it's the all about me approach.
Speaker 5 (25:44):
Too many businesses lead with what they want from the
partnership rather than understanding their potential partner's needs. First, I
worked with a marketing agency that couldn't understand why their
partnership outreach was failing until we reviewed a pitch which
talked exclusively about the leads that they wanted without addressing
(26:05):
what partners would gain.
Speaker 3 (26:07):
Second is an adequate due diligence.
Speaker 5 (26:10):
Rushing into partnerships without thoroughly researching the potential partners can
lead to misaligned expectations and totally waste that effort. A
client in the fitness industry enthusiastically partnering with an nutritional
supplement company, only to discovered reputations reputation issues that reflected
poorly on their own brand. Third is vague expectations. Successful
(26:34):
partnerships need clear, measurable objectives and processes. A financial advisor
created numerous networking partnerships that produced minimal results because there
was no defined system how referrals would flow between the businesses.
Common error or over formalization to formalizing too early, Some
(26:56):
businesses insist on complex agreements were testing the concept, creating
unnecessary friction.
Speaker 3 (27:03):
Start with a pilot program to.
Speaker 5 (27:06):
Establish trust and demonstrate value before expanding to more comprehensive arrangements.
Speaker 3 (27:11):
Fifth is under investment in partner support.
Speaker 5 (27:14):
So many businesses fail to provide addequate training materials and
ongoing communication to help partners succeed. So a home services
company created an innovative referral program, but didn't train their
partner's staff on how to identify appropriate referral opportunities, and
that's severely limited results. And six is measuring the wrong metrics,
(27:39):
focusing exclusively on immediate revenue that can undermine long term
partnership value. So before we continue, let's take a ninety
second break.
Speaker 6 (27:53):
Hey, dear business owners, let me ask you something. Are
you tied of blending in with your competitors? Frustrated slow
growth and slim margins. Well, I've gotten news for you.
Everything you've ever learned about growing your business is wrong.
Don't worry. I'm here to let you in on a
secret weapon. Your position of market dominance. It's what sets
(28:15):
you apart, makes you irreplaceable, and has customers lining up
at your door. My name is Michael Barbarrita from Next
Step CFO. I know what you're thinking. Sounds great, Michael,
How do I find my position of market dominance? Well,
that's exactly why we've created our game changing impleitation program
called Next Step to Market Dominance.
Speaker 3 (28:37):
In just ninety days, we'll.
Speaker 6 (28:38):
Guide you step by step to a position of market
dominance by uncovering your unique strengths that competitors can't touch.
By crafting a message that resonates deeply with your ideal customer,
by building a strategy that turns you into the go
to expert in your field.
Speaker 3 (28:53):
Now this is in theory.
Speaker 6 (28:55):
These are battle tests and strategies that have helped businesses
like you. It is double triple and coordinate ruple their revenue.
Don't let another quarter go by struggling to standout. It's
time to dominate your market period. Go to NEXTSTEPCFO dot net,
forward slash contact, fill out the form and in the
message section put the word dominate or call us at
(29:18):
seven eight one three two six three A two two.
That's next STEPCFO, dot net, Forward slash contact or call
us at seven eight one three two six three A
two two Welcome back, And remember, if you're driving, you
can pick up the replay at our website Powerful Business
(29:38):
Strategies dot com.
Speaker 3 (29:40):
Any any show is on.
Speaker 5 (29:41):
All the shows that we've had are on that website,
So if you'd like to hear a specific show, just
go to that website and download it. So now let's
explore the critical elements of a structuring successful partnership agreements
that create sustainable value for both parties, all or all
parties if it's multiples partnership. The most common mistake I
(30:02):
see in partnership development is jumping straight to stand and
then revenue more creative and potentially more valuable structures. While
financial incentives are important, the most powerful strategies go beyond
simple commission arrangements to create multi dimensional value. And so
I recommend using what I call the partnership value matrix.
(30:24):
And that's a framework for designing partnership structures that align
incentives and maximize results. This matrix has four quandrance, each
representing a different type of value exchange. So the first
quadrant is financial exchange and This includes revenue sharing, referral fees,
commission structures, and other monetary incentives. While these are important,
(30:47):
that just the beginning of the value that the partnership
brings to each partner. For example, a home services company
offered real estate agents one hundred dollars for each referred
client who completed a a service and this was effective,
but when they added the other quadrants of value, partnership
results increased dramatically, so it wasn't just a financial The
(31:11):
second quadrant is experience enhancement. This focuses on how the
partnership improves the experience for the end customer, creating value
for both partners brands. Continuing with our home service example,
he created a new homeowner welcome package that agents could
give to their buyers, including priorities, scheduling, extended warranties, and
(31:33):
seasonal maintenance reminders. This added tangible value to the agent's
client relationships while establishing the service company as a logical provider.
The third quadrant is operational integration. This involves creating systems
and processes that make the partnership function smoothly for both businesses.
(31:55):
That home services company, he developed an agent portal where
referrals could be tracked, communications could be managed, and reports
generated automatically. We also created a coporated materials and established
regular check in processes. These operational elements reduce friction and
(32:16):
increased partner engagement. That's what you want, increased partner engagement.
The fourth quadrant is strategic alignment. This ensures that partnership
supports both companies and their long term objectives beyond immediate revenue.
So in our example, he established quarterly strategy sessions where
(32:36):
the home services company shared neighborhood specific data with real
estate agents like average service request by home agent type,
helping agents refine their listing strategies. This position the service
company as a strategic resource, not just a vendor. And
then when all quadrants are addressed in your partnership structure,
(32:58):
you'll create what I call value resistance, a relationship that
can withstand competitive challenges and changing market conditions because it's
built on multiple layers of mutual benefit. Now let's talk
about how to formalize these arrangements without killing the relationship
with well excessive paperwork and restrictions. I recommend a three
(33:24):
phase approach to partnership development. So Phase one is the
pilot program. This is a limited scope test of the
partnership concept with minimal formal structure, and this lasts usually
about thirty to ninety days and focuses on validating the
core value exchange and by the way, throughout this process,
(33:44):
both parties are.
Speaker 3 (33:45):
Engaged in getting this accomplished.
Speaker 5 (33:48):
Nice For example, a marketing agency might work with three
accounting firms to test a referral program before investing in
the full partnership infrastructure, and this allows both parties to
experience the partnership benefits with limited risk. Phase two is
the structured program, a more formalized arrangement with defined processes, expectations,
(34:11):
and define compensation structures. This typically spans six to twelve
months and includes regular performance reviews and adjustments. At this stage,
the marketing agency might develop specialized materials for accounting partners
or creating dedicated partner support system and establish regular communication channels.
(34:33):
Three is the strategic alliance, a deeply integrated relationship where
both companies aligned significant portions of their operations and strategy
around the partnership, and these relationships typically extend over years
and may include exclusive arrangements or co developed offerings. Our
(34:54):
marketing agency might now create industry specific service packages exclusively
for accounting clients, integrate their reporting systems with the accounting
firms platform, or even co locate staff. And now every
partnership needs toss progress through all three phases. Many successful
(35:14):
partnerships remain at the structured program level indefinitely. And the
key is is matching the level of formalization to the
partnership strategic importance and performance. And let me share an
example of that, and it illustrates affective partnership structuring. A
(35:35):
boutique wealth management firm was struggling to grow despite excellent
performance because they lacked the marketing resources of larger competitors.
Speaker 3 (35:44):
Using the Partnership.
Speaker 5 (35:45):
Value Matrix, they developed a comprehensive program for CPAs and attorneys.
In the financial exchange quadrant, they offered a tiered revenue
sharing structure that increased as the partner referred more business,
creating growing incentives for engagement. In the experience enhancement quadrant,
(36:06):
they created co branded financial education workshops that partners could
offer their clients, positioning them as.
Speaker 3 (36:14):
More comprehensive advisors.
Speaker 5 (36:17):
In the operational integration quadrant, he developed a secure client
introduction process that respected privacy regulations while making referrals seamless.
They also created automated reporting so partners could track their
client satisfaction, and in the strategic alignment quadrant, they offered
(36:41):
partners access to specialized expertise for complex client situations, even
if they weren't directly revenue generating. They launched with a
ninety day pilot program involving three partners, and they refined
the program based on their feedback and then expanded it
(37:01):
to a structured program with fifteen partners. One of the
beauties of these programs that you can actually invite other
partners as long as they have and qualify with the
methodologies we've been discussing, and within eighteen months these fifteen
partners we're generating sixty five percent of the verb's new clients,
(37:23):
far more efficient than previous marketing efforts. And the key
insight from this example is that comprehensive partnership design addresses
multiple dimensions of value, creating relationships that both parties are
invested in and maintaining and also growing. Now, let's discuss
the importance of systematic management once partnerships are established, so
(37:47):
even the best designed partnerships will underperform without consistent attention
and nurturing. I recommend implementing what I call a partnership
success system. This is a structured approach to managing partnerships
for maximum results, and the system has five components.
Speaker 3 (38:07):
First, this is.
Speaker 5 (38:09):
So important because we want to tract everything clear metrics
and reporting. Both partners should have visibility into key performance indicators.
A construction company provided monthly reports to their architect partners
showing leads received, why just completed as a result, and
client satisfaction scores. And this transparency build trust and highlighted
(38:33):
the partnership's value. Second, regular communication rhythms, so established consistent
check ins at appropriate levels and intervals. Some partnerships require
weekly calls, while others might need only quarterly reviews or whatever.
The frequency consistency is key to relationship maintenance. Third is
(38:59):
continuous education and enablement. Regularly updating partners on your offerts,
providing training on referral identification and share market insights that
helped them succeed. A software company that I advised created
a quarterly partner update webinar that consistently achieved eighty percent
(39:21):
attendance because it provided genuine value. Fourth, recognition and incentives,
acknowledge and reward partner performance beyond the basic financial arrangement.
Speaker 3 (39:36):
That's important.
Speaker 5 (39:36):
Fifth, feedback and evolution. Systematically gathered partner input and use
it to improve the program. Potentional services firm that I
worked with implemented bi annual partner surveys that led to
several program enhancements, increasing referrals by forty percent the following year. Together,
(39:59):
these five elements create a partnership management approach that transforms
one time arrangements into sustainable growth engines.
Speaker 4 (40:09):
You know, Michael, this is fascinating, right, and I want
to pick up on one of the concepts that you
touched on, so you emphasize the importance of creating multi
dimensional value in partnerships. Could you share a specific example
or maybe two, of how a small business with limited
resources successfully implemented this approach.
Speaker 5 (40:28):
That's an interesting question to bee, And the main reason
why it's an interesting question is that dress it actually
addresses a very common concern.
Speaker 3 (40:37):
Yes, small business.
Speaker 5 (40:38):
Owners often believe they lack of resources for sophisticated partnership programs. Absolutely,
but some of the most creative approaches I've seen have
come from those resource constraint on entrepreneurs, and let me
give you a quick example. A solo interior designer who
(41:02):
had exceptional talent but a minimum marketing budget identified high
end real estate agents as ideal partners who already had
relationships with home buyers likely to need design services, and
despite their limited resources, she created multi dimensional.
Speaker 3 (41:23):
Value across all four quadrants.
Speaker 5 (41:26):
In the financial Exchange quadrant, rather than offering cash referral fees,
which she couldn't afford, she created a Designer for a
Day certificate that agents could give to their luxury buyers,
and this had a fifteen hundred dollars retail value but
cost her only her time. For each client who converted
(41:46):
to a full project, which was about sixty percent of them,
she provided the agent with a five hundred dollars gift
card to a high end restaurant, and that caused the
chief could easily absorb within her project margins. So in
the Experienced Enhancement quadrant, she created a new home visualization Guide,
(42:07):
which was a beautiful co branded booklet with design tips,
space planning worksheets, and inspirational photos, and agents could give
these to the clients at closing as a high perced
value gift that showcased both the agents and the designers' expertise.
And in the operational integration quadrant, she built a simple
(42:30):
process where agents could schedule a fifteen minute video call
with her before showing luxury properties. She would provide quick
insights about each home's design potential, giving agents talking points
that impressed perspective buyers. And this required minimal time but
(42:51):
significantly enhanced the agent's presentation. And in the strategic alignment quadrant,
she offered the stage the agent's most important listings using
items from her inventory. While this took just a few
hours per month, it helped agents sell houses faster and
at higher price. It's creating strategic value far beyond the
(43:14):
immediate design. So can we just take one quick question
from a listener, Chikie.
Speaker 3 (43:22):
We can't.
Speaker 4 (43:23):
I mean, it's funny our listen is always asking us
to maybe take more questions.
Speaker 3 (43:28):
Here's one out.
Speaker 4 (43:28):
How do you recommend businesses measure the ROI of their
strategic partnerships, particularly compared to other marketing channels.
Speaker 5 (43:37):
Well, that is a critical question because partnership oury measurement
requires a more nuanced approach rather than traditional marketing metrics
and I recommend a three ten approach.
Speaker 3 (43:50):
The first is direct revenue metrics.
Speaker 5 (43:53):
This is about customer acquisition costs for both partners, conversion rates,
average transaction value, and customer lifetime value. And then a second,
the second one is a relationship relationship value metrics. These
these measure the broader business impact like sales cycle length,
(44:15):
retention rates for partners, cross selling success with partnership clients,
and referral generation from partnership sourced clients.
Speaker 3 (44:24):
The third is strategic position metrics. These track how partnerships
affect your.
Speaker 5 (44:31):
Market presence, so the access to new market segments, the
brand association benefits, the competitive installation that's in partnerships that
block competitors, and the innovation opportunities that emerge from partner relationships.
And so, Chikey, I was wondering if you could go
right into compliments.
Speaker 4 (44:52):
Right absolutely, so today and I'll complement segments. We want
to highlight three remarkable professionals, Michael, who are combined their
unique talents to create something truly special. This is a
type of collaboration, Michael, that you and I we often
talk about and we've captured in our book Powerful Business Strategies.
So here are the professionals. First Stacey Kreamer.
Speaker 5 (45:14):
She is a.
Speaker 4 (45:14):
Licensed Mental health counselor at Stacey Creamer l MHC, and
she's bringing her expertise in mental wellness and therapeutic techniques
to the table. Second professional Joan Didion. She's a skilled
practitioner behind Didian Acupuncture. She offers her deep knowledge Michael
(45:37):
of how traditional Eastern medicine can rebalance our energy and
reduce physical manifestations of stress. And then the third professional
is Sharman O'Keeffe. She's a dynamic force driving Charman Fitness.
She lends her talents to understand and how physical movement
(45:57):
and exercise are powerful tools from managing stress and improving
overall wellbeing. Will Michael get this? Stacey, Joan and Charman. Together,
these three wellness experts are developing a product providing an innovative,
comprehensive approach to stress management which integrates mental health counseling, acupuncture,
(46:24):
and fitness straining into one comprehensive program. What we find
most impressive about this, Michael, I've got to share this
with the audience. These three professionals are leveraging each other's
strengths in a very complementary and synergistic way as part
of a joint venture. So instead of competing, they are
collaborating to create a signature product that delivers more value
(46:47):
to each of their client base now in today's high
pressure world, Michael, you and I both noticed. I mean,
their work addressing stress through multiple complementary approaches could not
be more That timing is impeccable. We absolutely want to
commence Stacy, Joan and Charman for their vision in creating
(47:08):
this holistic stress management system, and we truly want to
encourage their ingenuity to continue to develop this very promising venture.
We believe that stress relief as a solution has the
potential to transform the lives of people across multiple communities.
Speaker 3 (47:28):
Michael, you can find out more.
Speaker 4 (47:30):
About Stacy on her website at Staceykreamer l MHC dot com.
You can find out more about Joan on her website
at Didianacupuncture dot com. You can find out more about
Sherman on her website our Strmanfitness dot com. Back over
to you, Michael.
Speaker 3 (47:46):
Thank you, Chicky.
Speaker 5 (47:47):
You know the interesting thing is we didn't even talk
about that today, how you could develop products through strategic relationships.
Speaker 3 (47:53):
My God, we have invested that.
Speaker 5 (47:56):
Thank God that Stacy Joan and Sharp and added that
to our show.
Speaker 4 (48:03):
Absolutely.
Speaker 5 (48:03):
So, as we wrap up today's episode on strategic Partnerships
and joint ventures, let me summarize the key insights we covered.
So we introduced a systematic approach to partnership development that
can dramatically grow your business without increasing marketing costs. And
this approach includes the three core steps. First, identifying ideal
partners using the concentric circles methodology, we explored how to
(48:28):
natural allies, adjacent providers, and value amplifiers, and then prioritize
potential relationships based on relationship assets, business values and reproprocity
reciprocity potential.
Speaker 3 (48:45):
Yeah got.
Speaker 5 (48:47):
And we also discuss the value first approach to initiating
partnership conversations that consistently produces results. Second, we offered structuring
effective partnership. Using that partnership value matrix, we examine how
to create multi dimensional value across financial exchange, experience enhancement,
(49:08):
operational integration, and strategic alignment.
Speaker 3 (49:11):
And we also explore the three phases of partnership development
from pilot programs to strategic alliances, and the importance of
systematic management through partnership success programs. And what I hope
you take away from today's episode is that strategic partnerships
aren't just another marketing tactic. They are a fundamental business
(49:33):
strategy that can improve your growth trajectory. And when implemented correctly,
partnerships allow you to leverage existing trusted relationships rather than
building them from scratch, and creating greater efficiency and effectiveness
than traditional marketing approaches. And remember that partnership development is
(49:54):
both in art in the science.
Speaker 5 (49:56):
It requires systematic processes and struct should management, but also
relationship skills and creative thinking. The businesses that excel at
partnerships combine method methodol, methodhogic where I'm having I'm having
real problems today, method method execution, general relationship building. And
(50:21):
if you implement just one strategy from today's episode, make
it the partnership value matrix. Looking beyond simple financial arrangements
to create multi dimensional value is the key developing partnerships
that both perform strongly and endure over time. And as
you develop your your own partnership strategy, remember that the
(50:43):
goal isn't quantity but quality. A small number of well
structured activity managed partnerships will generate far more value than
a large network of casual, opportunistic relationships. So to get
a copy of the book Powerful Business Strategies, simply go
to our website www dot NEXTSTEPCFO dot net. It's totally
(51:07):
complementary and until next Monday at noon Eastern time for
Chucky Obio. My name is Michael Barberita, and remember, don't
keep doing what your competition is doing.
Speaker 2 (51:20):
You have been listening to Powerful Business Strategies finding out
that everything you ever learned about growing your business is wrong.
Tune in next week and every week at noon Eastern
time on W four CY Radio with your host Michael
Barbarita of Next Step CFO and moderator Chugy Obio
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