In the last few weeks we have been announcing a series of strategic alliances around our KidoZen platform. While watching the press releases I was reflecting upon the great job our team is doing finding, structuring and nurturing the right types of partnerships. This process has been a learning experience for us given that, as any new startup, we had to go through the process of figuring out which models of strategic alliances were effective for us and our partners.
Establishing effective strategic alliances is one of the hardest things on the early days of any startup. Identifying the right partners, make your technology visible to them, building and getting in motion the right partnership dynamics are some of the fundamental elements that need to be master as part of your early business development effort.
Based on our experience, there are a few lessons learned that I think might be helpful when structuring strategic alliances in startups.
Don’t Focus on the Big Guys
When thinking about strategic alliances, a lot of startups make the classic mistake to focus on the biggest players on a specific category. As tempting as partnering with a big company might be, you need to be aware of the level of effort and resources that might be required to establish those types of agreements and get the right level of attention from your potential big partner.
Instead of focusing on the big guys, we have found very effective to find the medium, boutique players on a specific category that are truly innovating in the space and devote the right resources and focus to the strategic alliance.
Have a plan to execute after the agreement is signed
A lot of business development folks think about strategic alliances mostly from the marketing perspective. Big announcements, solid press release but no real plan of how to execute after the agreement is signed. As a startup, you should spend the right time focusing on putting the dynamics in place to make the partnership effective and deliver real value to your company and your partner.
Honor the Partnership
Partnerships are only effective is both parties can benefit from it. As a startup, it’s natural to focus most of your attention on driving value to your organization but you should also put the right level of effort to honor your partnership agreement and make your partner successful even if it require sacrifices on your side.
You are Always Looking for Partners
Signing solid strategic alliance is a constant marathon, not a sprint. If you are a CEO or head of business development of a startup, you are always looking and reaching out to potential partners even if you are not equipped to get any agreements in place at the time. Building strong relationships, keeping partners up to date about your progress and vision will do wonders for your company when comes time to build solid strategic alliances.