An ally can play a key role in elevating your commercial execution.
New entrepreneurs and innovators in Puerto Rico are emerging from their homes and classrooms to promote ideas, create novel businesses and launch in the marketplace the products or services they have developed.
But there is a situation that few can avoid. “What I have seen is that we want to do everything,” said Vivien Montañez, executive vice president and manager of the Business Banking Division at Banco Popular. Many times, the owner, wanting to save some money, covers all of the business’ processes, such as production, quality control, packing and distribution.
“This is fine at the beginning,” said Montañez, but as the company grows, there are tasks that should be delegated to others through a strategic alliance. This allows the business owner to invest his or her time and effort into areas of strength, such as in the production, the quality control or increasing sales.
“Strategic alliances are a good choice when two companies have something they need from each other,” explained Montañez.
An ally is not the same thing as a partner. When we talk about a partner, we are referring to a person who comes into your business and becomes part of it. “An alliance is when two companies exist separately and come together for a particular project. Both benefit from each other,” the Banco Popular business expert explained.
One of the best known strategic alliances occurred two decades ago, when a soft drink brand joined forces with a famous international chain of coffee shops. The businesses got together to create a coffee-based bottled drink that has become one of the best known products from both companies around the world.
The selection of an ally should be done through a rigorous process and a legal agreement should be established between the two companies. Before signing any contract, you should investigate and have enough information about the business you plan to work with so you can corroborate its reputation and reliability. It is also crucial that both companies are aligned in terms of vision, mission and objectives.
Some banking institutions organize events and invite business people who are looking for strategic alliances to develop their businesses. Banking institutions can also offer guidance and financial assistance to both companies to develop the alliance. Don’t miss the opportunity to raise your business to the next level. Consider a strategic alliance.