Strategic Alliance May Help In Down Economy
In any battered economy, business owners are always looking for ways to cut costs but still grow and succeed. A strategic alliance may help some firms surviving through this recession.
A strategic alliance is not a merger or an acquisition, and it’s not outsourcing. As opposed to an outright merger or acquisition (where two companies become legally one), a strategic alliance involves two companies that pull together to share resources, funding or even equity on a long-term basis.
Strategic alliances aren’t for everyone. For starters, entrepreneurs must be flexible enough to work with their new partners. To accomplish this, entrepreneurs will have to give up some company control, a tough task for many entrepreneurs who have nurtured "their babies" since birth.
Finding the right partner is also a key to success. Partners should be involved in a similar industry and share similar business philosophies on growth and future goals.
--Ron Ameln, SBM