How business cooperation can be the key to growth
What is business cooperation?
Did you know that only 8% of companies today think their current business model works? This surprisingly low percentage is understood when you consider the impact of collaboration on business activity.
Businesses worldwide are expanding in every aspect of their operations as they seek to reach a wider consumer base or offer more services. This also applies to your home service business!
When you want to grow and expand your business reach, using a collaborative approach to your business activities can make a significant difference.
Business collaboration involves building effective connections with internal and external parties to advance your small business goals. Effective collaboration often involves project management tools and a teamwork approach to accomplishing tasks.
Whether you are a plumber, electrician, or even an HVAC contractor, you should consider a successful collaboration through strategic alliances.
In this article, we will learn more about the different types of collaboration and how it can bring success to your business.
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4 main types of business collaboration
There are four basic collaboration styles for you to learn.
- Alliance: It is here that the two independent organizations come together as partners, agreeing to share their assets to further their business goals. Reasons to choose an alliance include increasing business knowledge and access to information and customer bases that would not otherwise be available. An alliance allows you to tap into new markets or new technologies and better serve your existing ones! For example, a recovery contractor (such as a roof) may form a strategic alliance with an insurance agent and exchange referrals and appropriate data to help each other grow.
- Portfolio: This involves making the best use of the experience and knowledge gained from an alliance and incorporating it into the best practice of your own business. For example, a plumber may partner with an electrician and gain access to a supply network that they did not have before. Once the partnership ends, they can maintain their own business connection with the network, helping them further their own goals.
- Innovation Network: When team collaboration efforts exceed the boundaries of two independent firms, an innovation network is established. It involves a group of firms who come together through collaborative tools to share their own research, resources, and tools in the workplace. Networks focus on collective harmony and the long-term survival of all businesses involved. This could be in the form of joining a trade-specific network or association such as the National Roofing Contractors Association or joining a Facebook group with other businesses in your business.
- Ecosystem: Imagine a larger level of collaboration that connects multiple networks. That’s where an ecosystem comes from Ecosystems act as a network of networks consisting of different stakeholders (sometimes including customers) that work together to fulfill a shared vision! As a home service business, your local chamber of commerce can be an example of an ecosystem that can be tapped and connected to different networks.
How business collaboration helps your business grow
Business collaboration is more than just a simple partnership. It can help you increase the value of your business and take it to new heights, achieve your existing goals and develop your business roadmap with it.
Here’s how your business can benefit from collaboration:
Collaboration helps your business gain new ideas and inspiration: it can lead to the development of new products or services that will improve your business efficiency and help maintain profitability as you expand your options.
Collaboration builds your network and referral opportunities: Building strong connections with other businesses on your network will help you increase your chances of referrals. Your network can provide insights and even find solutions to the problems you are facing personally or professionally.
Collaboration is educational and keeps your business up-to-date: By collaborating with your peers and other businesses, you become part of a much larger picture that is the small business ecosystem. You can feel the trends and business applications of strategies of potential partners (for example, in developing their products) in real-time. You have also come in contact with various skill sets from industry professionals. This is a win-win opportunity for your business!
Collaboration helps your business solve complex problems: Today, there are millions of small businesses in the world. Each of these businesses is fighting hard for growth and improvement. Cooperation in business can help them achieve their goals. When you collaborate with other businesses, you can solve complex problems, gain access to more resources, reach new potential customers, and increase sales.
What to look for in business collaborations and Partnerships
When collaborating with other businesses, you need to consider every aspect of your partnership. Here are some things to consider when looking for new business opportunities or joint ventures:
A common goal: Collaboration is to work together with other like-minded partners to fulfill a vision you both share. You probably won’t hear of a partnership between a plumber and a pharmaceutical company. But a local business alliance between plumbers, electricians, roofers, and other home-service providers? It’s much more likely!
Sharing value: For many small businesses, the growth of their business does not depend entirely on the increased demand from existing customers. Many business owners want to partner with others with the same values (e.g., the way they treat their customers and employees, their ethics, and much more!). Partnering with a business with similar values will allow you to grow your network by complementing your partner’s strategies, offering things you are already doing differently.
Similar business culture: As a small and local business owner, staying on the same page with your affiliate partners is key to a successful relationship. This is especially true at any decision-making stage. You need to make sure that they are integrated with you from a business culture perspective.
Proper communication tools and equipment: Did you know that up to 80% of businesses use social media tools? Business collaboration is done through various channels including messaging, video conferencing, and even phone calls on platforms like Webinar, Slack. Finding out which media and platform team members are comfortable with is essential so that the quality of your communication is not compromised in the long run.
Mutual trust: As a business owner, it is important to trust your business partner. If business relationships are rooted in real values, they can be the foundation of a successful partnership.
Collaborate and boost your business with smmserviceusa
Even if you have a clear idea of how you want to grow your business, the path to achieving your goals can be unclear. This is why it is important to understand that by collaborating with the right business, you can achieve as much as you thought possible.
Today, your business must have a competitive advantage in a modern economy defined by growing customer expectations.
That’s why we’re here to help!
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Take advantage of smmserviceusa as a tool to be the center of all marketing-related activities for your home service business. With our support, you can manage your sales and payment, marketing, and customer support!
To make your business easier, we give you the tools you need to focus on being the best you can be.