Collaboration between two companies, small businesses, or professionals is a common type of partnership in the world of work. While partnerships for well-established businesses are very common, those between small businesses and other professionals may be their only way to survive and stay in business for a long time.
In our previous blog, UASA IP looked at strategic guides to partnerships for freelancers in business as a way to help freelancers increase revenue for their businesses. In today’s blog, we have a few types of partnerships that freelancers may consider forming with other companies, small businesses, and professionals in their fields to grow their businesses and become sustainable.
Competency gap partnership
As a small business, you can’t do everything yourself. There are likely a few aspects of a project where you may need external help in terms of labour or machinery for certain things. As a small business, it only makes sense to have contacts with a well-established organization or professional as a business partner and fill this competency gap.
A common struggle for growing businesses is managing their cash flow. Research has shown that most than 50% of small businesses fail with a year as a result of financial problems. While fact remains that you need money to run your business. But that can be a challenge in the beginning when you are still acquiring customers and the only option is to seek a financial partnership with a company or established small business or professional who can provide funding.
Distribution partnership is another common type of partnership, but with more of an emphasis on the supply chain. Distribution partnerships enable you to get your products to your customers and this type of partnership is very important between business people. One of the most observed is in companies that do business-to-consumer (B2C) commerce. These organizations rely on partnerships throughout various parts of the value chain to create value for customers. This includes partnerships within the procurement, production, and distribution phases. If you are into creating, manufacturing, and selling your one products, then this type of partnership is key to making sure that your logistics needs are catered for and that customers receive your products.
Integration partnership is when you work with another company to build and deliver an integrated product or service. Most integration partnerships are well-known in the digital and technology sector. With most freelancers actively involved in media, communications, digital, and marketing, integration partnership is a significant collaboration because these professionals secure most of their gigs in the sector. This is why it’s important to consider this collaboration.
Most professionals who are starting in any type of business should consider going into partnerships with well-established organizations or other professionals. This is because forming strategic partnerships can be incredibly lucrative for all parties involved and also partnership is a good call for any business.