Why Has a Business Partner in the Software World Still Being Effective?

Have you heard of brand ambassadors or strategic allies? Most likely yes, because it's a strategy that has become popular in recent years, especially with mass consumer products. These alliances are made for commercial purposes and generate profits for both parties involved.

Here we explain how and why it can be interesting to try it if you have a software application or startup.

But What is a Strategic Partnership?

We can say that it is a strictly business relationship that can be carried out both by two or more companies and by several individuals.

These relationships with a business partner always aim to create value for everyone involved in the deal by increasing income, or reducing costs, or generating new ideas and innovations for customers.

Likewise, the work is always shared between the parties equally, seeking to be as equitable as possible. And of course, the profits are divided.

A strategic alliance is not only hiring an influencer to promote your product. That is a common way nowadays, but in the software industry, this kind of alliance is made commonly between companies, with the objective of:

  1. Sponsor or patent the quality of the product with a company of greater trajectory (in the case of startups)
  2. Seek funding
  3. Develop the tool together
  4. And of course, promote it from a commercial point of view

This is an example of a huge company supporting smaller as a partnership.

Why Should I Seek a Business Partner?

A few reasons why companies might consider forming a strategic alliance:

  • Maximize value for customers. Creating partnerships with complementary companies can make your customers more interested in your products and your sales rise.
  • Reduce your risk. Beyond giving customers more value, expanding your offering helps reduce the risk of loss and be a little more protected against future market fluctuations.
  • Open new markets. Partnering with well-known brands can open up new customer segments that would otherwise be unprofitable to reach by other means.
  • Optimize your marketing spend. Leveraging existing audiences from larger, more well-known brands through co-marketing and other strategic efforts can help lower customer acquisition costs and improve profitability.

Steps Towards a Successful Partnership as Startup

Define your own partnering agenda.

Recruit the right partners.

Develop a joint business plan and define the rules of engagement.

Broad and deep engagement.

Define clear roles and responsibilities.

Balance return and investment.

Accept and respect differences.

Review, learn and celebrate.

Develop your negotiation abilities

Always read and look for programs as an example. Google, Amazon are some companies that accelerate and bet for startups to incorporate to its product variety.

This topic is very entertaining, and we can continue treating it in later content. If you are interested in applying to any of these programs and even if you want to ally with us, contact us, and we will surely have a coffee together to discuss it and enjoy the good ideas that come out.

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