Decisions To Make When Choosing A Business Partner

Decisons when choosing a business partnerThe world of sales is a place where one’s path can intersect with that of a competitor or fellow representative many times. While competition between companies is a good thing, certain situations may call for a business to team up with fellow salespeople.

A sales management team needs to know the correct situations for partnering up with another company, along with determining what type of relationship to pursue.

The manager at a sales office should find a partner that would ideally be in a complementary business, which could mean that if they sell a product, your company should sell the service, according to Heather Kivett, President of Resolution Systems, Inc., a sales training and consulting firm.

“You don’t want to have a competitive situation when you’re in front of a potential customer with a partner,” said the executive. “You should both have a reason to be there.”

There needs to be a relationship where a management team can easily find out how to build greater value between the two companies by joining forces, rather than approaching the potential customer separately. Two representatives may be stronger than one, but there needs to be an alignment with products and services so that a more complete and bundled package can be offered to the buyer, according to Kivett.

By partnering with another company you are also expanding your knowledge base, as the new business relationship may open doors and reveal information that was not previously available, said the executive.

“You’re providing your partner knowledge and vice versa,” noted Kivett. “The result when you are in front of a prospect is a more comprehensive presentation where you’re able to answer all of their questions, by drawing from that expanded knowledge base.”

As with any business relationship, it is important for a sales management team to define the roles that exist. The individuals need to have specific strengths, ideally those that do not exist within your business, and these need to be understood and leveraged by both sides, noted the executive.

“This way no one else is stepping on someone else’s toes and the partnership is seamless to the customer,” said Kivett.

You can also leverage each other’s customer bases, a tactic that benefits both sides if there are similar numbers and revenue streams.

“Whether you need a reference to close a sale or are in the prospecting phase, by partnering with another organization of similar size you’ve essentially doubled the number of customers to mine,” said Kivett.