3 Kinds Of Partnerships That Lead To Quick (And Effective) Business Growth

Strategic business partnerships can be undertaken with a wide variety of goals, from combating climate change to improving intrateam efficiency. While the biggest benefit of strategic partnerships typically comes from longer-term relationships, there is no denying that many businesses are turning to partnerships that can help them achieve quick and effective growth.

With the right types of partnerships, brands can become better positioned to reach new audiences and increase sales, while at the same time being better able to focus their efforts on improving their own products or services. While quick and effective growth is never a guarantee with any business activity, certain types of partnerships are well-suited to helping your brand achieve these outcomes.

1. Business Development Partners

Quite often, growth-based partnerships are formed with the purpose of being able to better address audience needs that are underserved (or not served at all) by the business soliciting the partnership. There may be gaps in the internal capabilities of the business, and to better serve their clients they must enlist the help of a strategic partner that can strengthen these areas.

Such partnerships can allow a business to offer additional products or services, enhance its customer service or improve its operational efficiency. Regardless, the end goal is to increase the revenue from new and existing customers, and potentially lower costs at the same time.

Business-development partnerships can prove highly effective. One analysis found that companies with mature partnership programs were able to achieve double the revenue growth of competitors with less mature partnerships. On average, these mature partnership programs were responsible for 28% of the company’s overall revenue.

Developing a partnership that reaches “high maturity” requires time and effort. It requires full alignment between partners, and a willingness to seek collaborative solutions rather than engage in adversarial contract negotiations. By focusing on shared goals and core operational needs, these partnerships can deliver lasting value over many years.

Chris Ratigan, VP of business development at Monterey Financial, explains the power of a strong business development partnerships: “Great partnerships are built on mutual respect and reciprocal efforts that aim to help each other succeed. No matter what your industry, these traits are essential for establishing a solid foundation of trust. This will help both partners achieve mutually beneficial outcomes and contribute to the longevity of the partnership. With this in place, a strong business development partner will empower your team to identify and maximize potential opportunities for streamlining growth that they might otherwise miss out on.”

2. Distribution Partnerships

Distribution partnerships have long been a valuable tool for businesses to get their products into the hands of paying customers. In reality, many of the retail locations that we shop at on a regular basis — from grocery stores to “big box” stores like Best Buy or Walmart — are largely operating as distributors.

These retailers don’t produce the majority of the goods they sell in their stores. Rather, they sell items made by other brands in physical spaces that tend to be more accessible to the end consumer. Of course, finding a quality distributor with a desirable contract agreement requires a fair amount of research in its own right.

The rise of digital products and services — as well as distributors — has also resulted in new partnership opportunities. For example, websites like Udemy essentially serve as distributors for online course creators. In the app industry, so-called “super apps” now house multiple micro-apps from other businesses. This enhances distribution and access for the micro-apps, while also boosting the functionality of the primary app.

3. Social Media Influencers

While social media influencers may not seem like the most traditional of partnership opportunities, there is no denying that they can have a significant impact on your ability to reach new audiences and achieve rapid growth with your target demographic.

The influencer marketing industry reached a record $16.4 billion in 2022, driven in no small part by the undeniable performance of influencer content. While 61% of customers trust recommendations from influencers, only 38% trust brand-owned content. A 2022 analysis by HubSpot found that one in three Gen Zers had made a purchase because of an influencer recommendation within the last three months of when they were surveyed.

Influencers carry undeniable weight within their specific niches. Whether that is because of their authority in the industry or their ability to entertain, this can make them valuable business partners for promoting your own products and services. Partnering with influencers whose content and audience aligns with your brand will foster much-needed credibility as you try to reach those consumers.

Notably, you don’t necessarily have to go after the largest influencers on the market to enjoy meaningful partnerships. So-called micro influencers with a smaller number of followers (and smaller advertising rates) can often be even more beneficial for reaching a specific sub niche, in part because they tend to be more closely connected with their audience than an influencer with tens of millions of followers.

Making the Most of Your Partners

These examples are just the tip of the iceberg in terms of how a strategic partnership can help your business grow quickly and effectively. By evaluating your own growth needs and current operational shortcomings, you will be well equipped to identify the areas and initiatives where a partnership can have the greatest impact.

With the right partner — and the right type of partnership — you will be well on your way to maximizing the growth of your business.