Q: What’s one of the most profitable strategies to grow my business with the least up front cost?
A: One often overlooked strategy is to form an alliance with another non-competitive business that has the types of clients you desire. We see strategic alliances everyday. Think of the bank and the Starbucks inside the grocery store, fast food restaurants inside gas stations, and credit card companies aligning with the likes of Disney and Southwest.
Companies create these alliances to reach new client segments and piggy back off each other’s brand affinity, which reduces marketing cost, thus helping yield high profits.
Who are the non-competitive businesses you could align with that already have the trust and affinity of clients you want to serve? How could you create an alliance with another business that would endorse your services/products to their client base? Perhaps your partner would get a percent of revenue generated, a flat fee, or a referral fee.
There’s a myriad of ways to structure alliances and it’s recommended you seek the advice of someone or a company who’ve structured them successfully because from what we’ve seen, many don’t.