How to Initiate and Make a Strategic Partnership Successful
Following on from our last blog about how strategic partnerships boost your business growth, we’d love to share some more insights on how to initiate and make a strategic partnership successful.
How Do You Initiate a Strategic Partnership
Building a strategic partnership is like a football manager selecting the perfect squad for a big match. They don’t just pick players at random—they analyse their strengths, consider how they complement each other, and ensure they fit into their tactical approach. They’re not simply filling positions; they’re crafting a team where each player enhances the overall performance. Maybe they have a solid defence, but they need a creative midfielder to unlock opportunities. Their invitation to a new player isn’t just “Come play for us”—it’s a thoughtful offer, showing them how their skills fit into the bigger vision and how, together, they can achieve success on the pitch.
You've identified a potential partner. Now, how do you start that conversation effectively?
Be confident in the value your business offers, if you don’t believe in your business then the other person won’t either.
When you reach out, the most important question to ask yourself is: 'What's in it for them?'. The other company primarily cares about how they will benefit from this partnership.
Your initial outreach should be targeted to their interests. Provide specific details on why a partnership makes sense for them. Don't lead with what you want; demonstrate the value you can bring to their business and their clients.
It's highly recommended to follow networking best practices and seek a warm Introduction through a common contact rather than cold outreach. This helps establish credibility."
Your initial goal is simply to have a conversation to discover mutual goals. Take your time to build a real connection; strategic partnerships are relationships, not just transactions.
How Do You Make a Strategic Partnership Successful
Making a strategic partnership work is like playing doubles in tennis. Before the match, you decide who covers which part of the court (roles and responsibilities), how you’ll play your shots (expectations and timelines), and how you’ll signal when to switch positions (communication). During the game, you trust each other to cover your areas, working together seamlessly. You check the score (KPIs) to see how well you're performing. If there’s a misstep—like missing a shot or overlapping in the wrong space (conflict)—you adjust quickly, staying focused on winning together. Success isn’t just about having two players; it’s about playing as a team, anticipating each other’s moves, and keeping the rally going strong.
Once you've established the partnership, the work isn't over. Successful strategic partnerships require ongoing effort and clear structure.
At the core is mutual benefit. Ensure a balance in benefits so both parties feel they are winning.
Set clear expectations from the outset. Define roles, responsibilities, and timelines clearly.
Document agreements outlining each party's rights and obligations
Build on the relationship over time. Foster mutual trust and respect.
Open communication and transparency are essential. Manage the collaboration through regular check-ins to monitor progress.
Start on a small project if needed to build momentum.
Measure and evaluate success by setting clear Key Performance Indicators (KPIs).
Track things like revenue growth from the partnership, customer acquisition cost, customer satisfaction, market reach, or engagement metrics.
Regularly review progress against these measures.
Don't ignore conflicts. Address them promptly with empathy and a focus on win-win solutions. Flexibility and compromise are necessary.
What if Strategic Partnerships Seem One Sided in Terms of Referrals?
Before we started In Business I had business making wedding cakes. I belonged to our local Chamber of Trade. There was also a wedding photographer in the group, called Luke. We struck up a Strategic Partnership.
When people get married, they sort out the big stuff first, such as venue, photographer, flowers etc, working their way down the list of priorities to the cake maker.
Referrals were easy for Luke but not so easy for me to return them to him. Occasionally, if someone had been let down by their photographer, then I could pass on the referral, but mostly it was one-sided.
I was concerned about this and spoke to Luke, but he was happy that his couples would be in good hands, they would get great customer service, a beautiful cake that tasted delicious, and it gave him some credibility and trust with the couples.
Ok, so what happens if you feel like you're sending a lot of business to your partner, but you aren't receiving much in return?
· If one side is happy with the less tangible benefits, then that is fine.
· If it’s still one-sided, think about the value of the referrals, do you charge more for your services than your strategic partner? If so then maybe the ratio of 1 referral to 4 is fair.
Remember, a strategic partnership is defined by mutual benefit and a vested interest in each other's success that goes beyond simple referrals. If the primary or only benefit is meant to be referrals, and they are one-sided, it's likely that the partnership wasn't set up correctly with clear, measurable, and mutual expectations from the start.
It could indicate a lack of alignment on goals or understanding of each other's businesses, or a lack of commitment from the partner. Because you have established communication channels and metrics, you should be able to identify this imbalance through regular check-ins and measurement."
If the partnership consistently feels one-sided despite attempts to address it, it could mean that it might not be a truly strategic partnership delivering mutual value, and you should be prepared to pull back if it's not giving the right results or your partner isn't delivering.
What’s an example of a strategic partnership?
A really good example is Lego's collaborations with brands like the Jurassic Park film franchise - our grandson has lots of Lego models based on the Jurassic Park films.
He’s too young to see the movies yet but he’s made lots of Lego models of the dinosaurs from the movie.
This demonstrates effective partnering by leveraging each other's strengths to reach new audiences.
The key takeaway is that these are intentional, mutually beneficial relationships built on clear goals, shared values, trust, and open communication.
For many of you, achieving your next level of growth, gaining that competitive edge, or accessing that new market, might be just 'one great partnership away'. You have the passion and perseverance, now you have a framework.
As you go about to your businesses today, we encourage you to think about the ideas we've mentioned. Consider your own business goals, who your ideal strategic partner might be, and how you can approach them with a clear vision of mutual benefit. Start small, take action, and build those relationships.
Remember, Strategic Partnerships are more than a collaboration, they are a commitment to go further, faster and stronger together.
If you’re keen to meet a potential strategic partner, then why not visit one of our events, check out dates and venues on www.weraeinbusiness.co.uk