For startups and small businesses, two big problems can be visibility and credibility. You may know you have a great product or service, but if the company is going to grow, you'll need to make sure your target market is aware of what you offer and believes you can deliver.
One way of overcoming this hurdle is to partner with a more established business which provides complementary products or services, is not in direct competition with what you offer, and targets a similar market.
One company which did just that is tech startup Profitero, which specialises in pricing data. After gaining a number of high profile clients, a natural progression was partnering with IBM Smarter Commerce, which works with companies to help them adapt to customer demands in today's digitally transformed marketplace.
"We collaborate closely with IBM by integrating our online pricing intelligence data into IBM Smarter Commerce products," says Profitero's CEO Vol Pigrukh. "The partnership has given us significant credibility and exposure, as well as providing us with a myriad of new business opportunities, such as Waitrose, who they introduced us to and we now count as a client."
For some small businesses, partnering with a larger company can involve investment as well as sharing clients. Scyron is an SME based in Birmingham which produces commercial security and surveillance software. When they partnered with IT provider Centerprise International, they received financial investment as well as expertise and mentoring.
Peter Franklin, business manager at Scyron says: "Thanks to this partnership we've been able to concentrate on what we do best, developing products that are tailor-made for our customers. When you're concerned with other aspects of the business it can be hard to play to your strengths."
A crucial part in creating a partnership is making sure you're the right match. "You've got to make sure it feels right, after all you're hopefully going to be working with these people for a long time to come," says Franklin. "The fact that a large company is interested in you enough to consider investing is in itself a confidence booster, but be sure that your potential backer understands your products and your business goals and shares your enthusiasm. If you can say that for certain, then it's likely to be a successful relationship."
There are a number of reasons why large companies may want to partner with smaller businesses, but injecting the energy and enthusiasm of a startup into a large organisation isn't a benefit which should be overlooked.
"We are of course investing in Scyron as a commercial venture and that's because we have faith in its products. But it's a two-way street and just as we're able to provide Scyron with expertise, they are able to pass on knowledge to us that we didn't have before. You're always hoping to learn from each other," says Richard Austin, group marketing and communications director at Centerprise.
For companies which offer a very niche service, partnering with large organisations can be crucial in getting the word out there that their offering is worthwhile. Mark Tighe, co-founder of specialist commercial property tax firm Catax Solutions, came from a corporate background so understood the need to partner with law firms and accounting bodies.
"I think we got quite lucky in a sense. Our competitors may have thought they were too small to be considered for partnership by the likes of the ICAEW [Institute of Chartered Accountants in England and Wales] or the Law Society," explains Tighe. "We never really thought we'd manage it but we pitched our service and explained why we thought we could add value for their members."
The benefit to Catax has been huge, as clients are directed to them and they don't have to splash out on marketing and advertising budgets in order to get their profile out here. Their partners also benefit, as they can provide their members with an extra layer of expertise.
Tighe understands why SMEs are reticent to approach big organisations but would urge them to try: "If you've never worked in a corporate environment it can be especially daunting, but you need to remember that they're people just like us. If you approach them offering something new which will add value to their proposition, why would they say no?"
Content commissioned by Guardian Professional on behalf of FedEx Express.
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