Written by: Jane Parmel, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Business is Business.
It's a dog-eat-dog world.
They'll steal your ideas.
Are you crazy?
After twenty-five years in Event Planning and management and five more years in the Coaching and consulting world, I have heard the comments and questions above dozens of times over.
But in my experience, working with those you see as competitors can be one of the most positive additions you can make for your business. In crowded markets and/ or industries, partnering with your competitors can give your business a boost like no other. Done with a plan for how things will move forward and a clear understanding of the anticipated ' benefits and possible detriments, each entity can enjoy a whole new dimension of profitability.
Once you have found the competitors you wish to work with, you must create a plan. Handshakes and gentleman's (or gentlewoman’s) agreements are great; planning is better and a vital part of working, with competitors. Here are four points to keep in mind when creating your plan:
1. Expectations
Your plan must include what is expected by all parties. Clear descriptions of service or products provided, substitution policies, compensation, refunds and customer follow-up must be defined from the onset of an agreement to work together. A legal agreement completed through legal counsel would be the best way to create a solid foundation for collaborating with your competitors.
2. Record keeping
Concise, precise and meticulous records should be kept by ALL parties in the “Collaborate with Competitors” agreement. Cross-checking records may seem laborious, but it will ensure that everyone is holding up their end of the agreement.
3. Compensation
How you and your competitors choose to compensate each other depends on what each of you needs. For example, you are a fruit & vegetable business and you have partnered with another fruit & vegetable business across town. You run out of chestnuts at Christmas; you call your CWC partner – they have 50 lbs. of chestnuts. As you have agreed on previously, you send them the breakdown of the orders you need filled, they package the chestnuts and deliver them to you so you can add them to your orders.
You may have agreed to keep a running tab of what is used by each business and either pay straight out for what has been used or replace the product (same quality & amount) or you may compensate the other business by filling an order they cannot or supplying another product needed. Whatever the case is, be sure that parameters for compensation are clearly defined. You can't replace filet mignon with bananas!
4. Room for Growth
Review, reassess, redesign and be open for new possibilities. If it works, expand on it and be open to other possibilities your original agreement has provided.
Simply, you have what you have (product, service, customer base, experience, education) and so do your competitors. Why not work cooperatively towards profitability for all?
You never know where it could lead…
Jane Parmel, Executive Contributor Brainz Magazine Jane Parmel, the creator of "The Profit Project," helps women to powerfully transform their businesses by up-leveling their money mindset, signature system, and pricing to recognize their value and create a more profitable business through authentic marketing and efficient operations. She makes your bottom line the high point of your business! Jane is also the NY Global Business Connector for the Women Speakers Association, hosting events connecting women with resources to amplify their role as a “Phenomenal Message Maker” – clarifying their message, increasing their visibility, and growing their audience.
