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This is the fourth in a series of six posts that focus on showing you how to improve the prospects of successfully launching a business. Click here to view previous posts.

Have you ever wondered how certain businesses all of a sudden pop-up on a market’s radar screen from seemingly nowhere? Well, with this post we’re going to expose one of the most powerful ways of making it happen. Quite simply strategic relationships are on deck.

The power in strategic relationships is that they allow each party to leverage the other brand’s perception, get the inside scoop on mistakes, and utilize seasoned distribution relationships. Sounds terrific, but why then do they often fall short of expectations? The most common reason is that they haven’t incorporated the two pillars of a thriving alliance:

  • the right framework
  • trust building

The FrameworkBegin with a strategy, not a partner.

As one of my favorite Yogi Berra quotes puts forward, you need to know where you want to be so you know how to get there. This means you have to have a game plan, correction not just a plan, a guidebook that outlines the alliance formation mechanics and offers a way to make clear decisions about managing it once established.

This is exactly what Steve Steinhilber, the former alliance guru at Cisco, outlines in his book ‘Strategic Alliances’. He encourages following a 6-step process:

  • Evaluation – define strategy / identify potential partners
  • Forming – examining the value proposition(s)
  • Incubating – build operating model
  • Operating – execute on plan
  • Transitioning – review for success and adjust
  • Retiring – mutually letting go gracefully

It’s All About TrustRelationships are solidified by trust. Institutions are built on it.

In business just like in life, it all comes down to relationships. Relationships are the heart of an alliance; nothing is a substitute for the hard work of getting to know people.

Unlike the framework above this relies on soft skills that take time and effort to master. Fortunately there are a lot of good books on business relationships and networking. Some of the best practical advice out there that can help accelerated your voyage up the mastery curve has been penned by Keith Ferrarzzi. According to Keith what it all comes down to embracing three mindsets.

  • Generosity – build trust right out of the gate, and never stop, by sharing your insights and ideas.
  • Intimacy – understand it is about creating a web of interwoven connections.
  • Candor & Accountability – embrace open honest dialog and follow through on your promises.

Bottom line: If you are serious about growing a solid business then it behooves you to study in more detail the advice above. Even if you are not interested in forging an alliance find a way to help, and find a way to care about both your customers and business advocates.

Donald McMichacel teaches BE 261 Starting a Small Business.